5:01 pm, October 27, 2021
CarShop and Sytner Group owner Penske has notched up an all-time quarterly record result with its net income soaring by nearly 44 per cent to $354.8m.
The Michigan-headquartered automotive group said today (Oct 27) that net income for the three months to September 30 rose by 43.9 per cent from $246.5m during the same period in 2020.
Meanwhile, its total revenue went up by nearly nine per cent to $6.5bn, and it saw retail automotive variable gross profit per vehicle increase by 38.8 per cent to $5,747.
Chairman and chief executive Roger Penske said: ‘Our business produced an all-time record third quarter driven by strength across all areas of our business, including continued strong vehicle margins.’
The group also reduced its long-term non-vehicle debt by $245.4m to $1.4bn.
Penske added: ‘Despite the ongoing supply-chain challenges which continue to impact the availability of new vehicles in both the automotive and commercial truck markets, our performance in the quarter demonstrates the strength of the automotive and commercial truck retail models and the benefits from our diversification.’
The CarShop name is now used in the USA as well as in the UK, after Penske rebranded its US CarSense operation at the start of 2021, and the unaudited supplemental data showed that it provided eight per cent of the retail automotive revenue mix for the three months.
The group highlighted the fact there are now 22 of the used car superstores, with another expected to open by the end of 2021.
The quarter saw CarShop’s retail unit sales increase by 0.4 per cent to 18,451 while revenue went up by 24.3 per cent to $438.1m.
Meanwhile, for the year up to the end of September, retail unit sales went up by nearly 18 per cent to 48,588 and revenue rose by nearly 38 per cent to $1.089bn.
Penske is targeting 150,000 vehicle sales and $100m (circa £72.8m) in pre-tax earnings for CarShop by the end of 2023.
