Sytner owner’s record £396m quarterly profit thanks to soaring new and used car margins

  • Penske Automotive increased revenue 21 per cent in the first quarter of 2022
  • New and used car margins leap dramatically across its global operations
  • UK business contributes 32 per cent of revenue as profits double

Time 7:13 am, April 28, 2022

Sytner Group owner Penske Automotive has revealed record quarterly results for the first three months of the year.

Thanks to a huge rise in new and used car margins, the American giant increased revenue for the quarter from £4.6bn ($5.8bn) in the same period last year to £5.5bn ($7bn).

Earnings before taxes for the period were up 101 per cent to a staggering £396m ($497m).

Sytner Group’s operations contributed 32.4 per cent of revenue to the Penske Group during the quarter.

During the quarter, Sytner bought three BMW and Mini dealerships and an accident repair centre from Specialist Cars Holdings for an undisclosed sum.

Profit during the quarter increased 38 per cent on used car sales and 45 per cent on new car sales.

Chair and CEO Roger Penske said: ‘I am pleased to report all-time record quarterly results for the first quarter of 2022 as earnings before taxes, net income, and earnings per share more than doubled when compared to the first quarter of 2021. 

‘Our results were driven by strong performance across the entire business as earnings before taxes increased by 93 per cent from retail automotive.’

Used car sales from the group’s CarShop sites – a brand used globally by Penske and extensively in the UK – increased retail sales by 71 per cent.

Some 19,523 used cars were sold by the car supermarkets during the quarter with total revenue up by 113 per cent to £411m ($515m).

CarShop stores were closed in the first quarter of 2021 under the UK’s third lockdown and operating online only.

Penske issued some words of caution on forward performance, warning the war in Ukraine, the ongoing Covid-19 pandemic and shortage of semiconductor chips could still impact the group.

Penske operates dealerships in the United States, UK, Canada, Germany, Italy and Japan and has distribution businesses in Australia and New Zealand.

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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