11:30 am, July 27, 2023
Inchcape is celebrating a 45 per cent increase in revenue to £5.63bn for the first six months of this year.
The rise from £3.89bn over the same period in 2022 was revealed in a half-year report issued this morning by the global automotive distributor via the London Stock Exchange.
The interim results also showed an adjusted pre-tax profit of £249m – up 35 per cent on the £184m posted for the same period last year.
Meanwhile, Inchcape’s adjusted operating profit rose by a whopping 61 per cent from £204m to £327m and its adjusted operating margin has gone up by 0.6 of a percentage point to 5.8 per cent.
The increase in revenue was helped via Derco – Latin America’s biggest independent automotive distributor that Inchcape bought for £1.3bn at the end of last year – plus a 13 per cent organic revenue growth.
Inchcape also highlighted an ‘excellent performance in distribution’, which enjoyed organic revenue growth of 17 per cent.
It signed 11 distribution deals and acquisitions during the first half of this year, including a global strategic agreement with Great Wall Motors.
Acquisitions and contract wins in the Philippines, Indonesia, New Zealand and Thailand were also highlighted for ‘significant traction’ in the Apac [Asia-Pacific countries] region.
Inchcape added that there had been ‘outstanding commercial momentum in the Americas, with several new distribution deals signed, including Subaru in Bolivia and Ecuador, Mercedes-Benz in Honduras, Geely in Guatemala and El Salvador and XCMG in Colombia’.
The full-year results are now expected to be towards the top end of the range of published market consensus, which was estimated at between £470m and £506m as of May 12, said Inchcape.
Group CEO Duncan Tait said: ‘Inchcape has produced another excellent performance during the first half of 2023, driven by growth from acquisitions and by consistently strong organic growth.
‘In particular, the acqusition of Derco has transformed our market position in the Americas and is already having a positive impact on the group.
‘This first-half performance highlights Inchcape’s continued commercial momentum, supported by our global scale and long-standing OEM relationships, underpinned by a highly differentiated technology platform.
‘Our business in the Americas is performing well, while we are producing strong momentum across the Apac region.
‘In Europe, our business also performed well, despite challenges in certain markets.’
He added: ‘Inchcape continues to build its position as the global leader in automotive distribution thanks to the combination of our people, who bring industry-leading expertise, our diversified geographic footprint and our digital and data capabilities.
‘We are uniquely placed to deliver outstanding performance for our OEM partners and drive consolidation in a highly fragmented market, supporting sustainable growth and value for our stakeholders.
- Inchcape racks up 50 per cent increase in pre-tax profit to £373m thanks to ‘robust consumer demand’
‘As a result, we remain confident in our medium-term outlook.’
Headquartered in London, Inchcape employs around 19,000 people globally.
It also has franchised dealerships in the UK representing Mercedes-Benz as well as Audi, BMW, Jaguar, Land Rover, Lexus, Mini, Porsche, Smart, Toyota and Volkswagen, while its retail brands include the used car outlet Bravoauto.
