5:10 pm, July 26, 2023
Sytner Group’s American owner Penske today reported a record quarterly revenue of $7.5bn (circa £5.8bn).
The figure for the three months ending June 30 was an eight per cent rise on the same period last year, and of that figure its total retail automotive revenue went up by seven per cent to $6.4bn (£5bn).
The Michigan-based dealership chain, which has some 146 UK sites according to its website, including used car showrooms under the CarShop banner.
Net income was $300.8m (£232.8m) – down from $374m (£289m) – while profit per share was 11 per cent down at $4.41 (£3.41) versus $4.93 (£3.81) the same period last year.
That still beat Wall Street expectations of $4.08 (£3.16), though, with analysts having also expected a lower revenue figure of $7.06bn (£5.46bn).
Retail automotive gross profit was $1,085.9bn (£839.6m) – up 2.4 per cent from $1.06bn (£820m) on 2022’s second quarter.
During the first quarter of 2023, Penske Automotive Group switched the Mercedes-Benz brand in the UK to the agency model, which saw dealers receive a fee for handing over new vehicles by the manufacturer. Revenue for the price of the vehicle wasn’t recorded, though, said Penske.
However, the UK contributed nearly a third (32.2 per cent) of Penske’s worldwide revenue figure – up from 31.8 per cent last year – and 8,931 cars were shifted via the agency model during the quarter.
The CarShop centres, meanwhile, contributed seven per cent globally – down a percentage point on 2022’s second quarter.
Ebitda dropped by 16.4 per cent from $548.3m (£424m) to $458.6m (£354.6m).
The total number of cars sold – including new and used retail as well as via agency – was 123,879, which was up 7.2 per cent on the same period last year, when 115,509 were sold.
Retail automotive gross margin for new cars went down from 12.8 per cent during 2022’s Q2 to 11.6 per cent, while the gross margin on used cars fell from 6.5 per cent to 5.3 per cent.
A retail automotive gross profit of $2,153 (£1,665) was made per vehicle sold under the agency model.
Chairman and CEO Roger Penske said: ‘I am pleased to report strong second-quarter performance from our diversified business model.
‘Automotive retail and commercial truck retail demand for new vehicles remains strong while same store service and parts revenue increased 11 per cent from retail automotive operations and increased four per cent from commercial truck operations.
‘Retail automotive same-store variable gross profit per unit retailed increased $163 when compared to the first quarter of 2023 to $5,646.
‘In addition, I am pleased that strong expense control produced a ratio of SG&A [selling, general and administrative expenses] to gross profit of 67.4 per cent, including a sequential decline of 10 basis points when compared to the first quarter of 2023.’
Pictured via Google Street View is Sytner’s Mercedes-Benz dealership in Newcastle upon Tyne
