9:24 am, July 28, 2022
Sytner Group owner Penske Automotive has revealed record-breaking profits for the second quarter of the year.
Boosted by rising margins in both the new and used car markets, the American giant reported earnings before taxes of £411m ($500m).
That is despite the fact that the outfit’s revenue actually decreased by one per cent between April and June to end the period on £5.7bn ($6.9bn).
Meanwhile, income from continuing operations increased ten per cent to £307m ($374m) and earnings per share went up by 17 per cent to £4.05 ($4.93).
Sytner’s CarShop brand was among the Penske outfits to enjoy increased sales over the period, with a seven per cent hike to 20,124 recorded.
Its revenue also rose by 15 per cent to £384.5m ($468m), including an increase of six per cent on a same-store basis.
However, the car supermarket group still recorded losses before tax of £1.2m ($1.5m) due to the increased cost of acquiring used vehicles and higher reconditioning costs.
For the first six months of the year, CarShop recorded a pre-tax loss of £2.2m ($2.7).
Elsewhere, in the UK, Penske has opened six new dealerships so far this year, via Sytner.
Additionally, the company has signed an agreement to acquire five Mercedes dealerships and three aftersales locations in North London Mercedes-Benz Retail Group U.K.
The sites are expected to generate revenue of approximately £451 ($550m) for the full year of 2022.
The deal is expected to be signed in the third quarter of this year, subject to the satisfaction or waiver of customary conditions.
Commenting on the company’s results, Roger Penske, chair and CEO of Penske, said, ‘I am pleased to report that our diversified business delivered all-time record quarterly earnings for the second quarter of 2022, including a sequential improvement in earnings before taxes, income from continuing operations, and earnings per share when compared to the first quarter of 2022.
‘Despite the supply constraints that continue to impact inventory availability, demand remains strong, and we continue to benefit from the diversification of our operations.’
Penske operates dealerships in the United States, UK, Canada, Germany, Italy and Japan and has distribution businesses in Australia and New Zealand.
Pictured: Sytner’s UK boss, Darren Edwards
