11:28 am, February 8, 2024
Penske Automotive Group – the US car dealer outfit that owns Sytner and latterly Rybrook in the UK – saw its revenue rise but profit drop last year.
It runs 189 franchised dealerships abroad, mostly in the UK, as well as 20 CarShop used car sites in the UK and US.
Its newly published results for the year ended December 31, 2023 show Penske’s revenue rose by 6% to $29.5bn (circa £23.4bn) but its pre-tax income (profit) fell by 23.6% to $1.42bn (£863.5m).
Meanwhile, its Ebitda dropped from $2.057bn (£1.63bn) to $1.653bn (£1.31bn) – down by almost a fifth.
Nevertheless, it was the Michigan-headquartered company’s third most profitable year, said boss Roger Penske.
The UK contributed 31.3% to Penske’s revenue – up 0.9 of a percentage point – while the CarShop outlets in both the UK and US were static at 7%.
Penske made $5,967 (£4,728) gross profit per new vehicle sold and $1,685 (£1,335) per used vehicle.
During 2023, Penske moved its UK Mercedes-Benz dealerships and others on the continent – it also has dealerships in Germany and Italy – over to the agency model under which the dealers received a fee for the manufacturer selling a new vehicle.
Revenue for the price of the vehicle isn’t recorded but it shifted 32,672 units via the agency model, receiving a fee of $2,233 (£1,769) per vehicle.
Chairman and CEO Roger Penske said: ‘Demand for new vehicles remains strong while used vehicle supply and affordability remains challenging.
‘Our diversified business achieved the third best year of profitability of all time.’
In January, Penske completed a deal to buy the Rybrook Group in a move that is expected to bring in some £795m a year. It has become part of Sytner Group and won’t be run separately.
Penske also has dealerships in Canada and Japan.
Pictured at top via Google Street View is Sytner’s Land Rover dealership in Portsmouth
