25 April
2024
Inchcape plc, the leading global
automotive distributor, announces its Q1 trading update covering
the period from 1 January to 31 March 2024
All figures and comments based on a
continuing operations basis (i.e. excluding UK Retail, which is a
discontinued operation).
Q1 2024 trading update
Positive start to the year, major
strategic progress
·
Good revenue
growth, outperforming our markets:
o Group
revenue of £2.3bn1, with 5% reported growth
o Organic and acquired growth, partly offset by translational
currency headwinds
o Further
momentum in APAC, with broad-based organic growth across our
markets, supported by acquisitions
o Continued
outperformance in Europe, driven by order bank unwind
o Key
markets stabilising in the Americas
·
Inchcape becomes
a pureplay Distribution business:
o Agreed
divestment of UK retail operations for cash consideration of £346
million
o £100m
share buyback announced, to commence on completion of
transaction
o Continued
expansion of Inchcape's market-leading Distribution
business:
§ Positive
contribution to growth from recent Distribution contract
wins
§ New
Distribution contract wins - Ford in Estonia and Forland
(Commercial Vehicles) in Ecuador
·
Outlook
reiterated (on a continuing
operations basis):
o Moderated
growth for the Group in FY 2024, at
constant currency
o Growth to
return to higher levels over the medium to
long term
Duncan Tait, Group Chief Executive,
commented:
"Our positive start to 2024 reflects
the underlying quality of our business and we have confidence in,
and we have reiterated, our outlook for the year.
"We recently announced an agreement
to divest our UK Retail business. This transaction will complete
our strategic transformation into a pureplay Distribution business
which is capital light, highly cash generative, higher margin and
globally diversified.
"With our global market leadership
position, digital and data capabilities to support our OEM
partners, our Distribution platform is well positioned for the
future, and we remain confident about the medium to long-term
outlook for the Group."
|
Q1
2024 revenue YoY%
|
Reported
|
Constant FX
|
Organic2
|
|
|
Q1
|
Q1
|
Q1
|
|
Group1 (continuing
operations)
|
+5%
|
+11%
|
+6%
|
|
Discontinued
operations1
|
(5)%
|
(5)%
|
(5)%
|
1: Our UK Retail business has been
treated as asset-held-for-sale and a discontinued operation, and
has therefore been removed from the current and comparative
periods. Our Retail business in Poland has been consolidated within
our Distribution segment.
2: Organic growth is defined as
sales growth in operations that have been open for at least a year
at constant foreign exchange rates.
Q1
2024 trading overview
The following
commentary covers the period from 1 January to 31 March 2024.
Unless otherwise stated, all figures are quoted on an organic
basis.
Group revenue increased 5% on a
reported basis during the period. This reflected 6% organic growth
and a 5% contribution from recent bolt-on acquisitions in APAC,
offset by (6)% translational currency headwinds:
|
·
|
In the Americas, key markets are stabilising,
with continued growth in Central Americas.
|
|
·
|
Strong momentum in APAC, with broad-based growth across a
number of markets, including Hong Kong and Singapore. The region
also benefitted from the contribution from acquisitions made in FY
2023.
|
|
·
|
The Europe and Africa region outperformed,
with accelerated supply supporting an order bank unwind in certain
markets in Europe, against a backdrop of muted new consumer
demand.
|
On 15 April 2024, the Group
announced that it had signed an agreement to divest its UK Retail
business to Group 1 for cash consideration of £346m. The
transaction is expected to complete in Q3 2024, subject to FCA
approval.
Market abuse regulation statement
This announcement contains inside
information.
Conference call today
A conference call for analysts and
investors will be held today, Thursday 25 April, at 08:30 (UK
time).
Dial-in details: +44 (0) 33
0551 0200
Password (if prompted): Quote
'Inchcape Q1 Results' when prompted by the operator.
Webcast details: To register
for the webcast of the event please follow
this
link. A replay of the call will
be available via the Company's website, www.inchcape.com
later today.
Financial calendar
|
Ex-dividend date for 2023 full year
dividend
|
2nd May 2024
|
|
Record date
|
3rd May 2024
|
|
Annual general meeting
|
9th May 2024
|
|
In the driving seat webinar: Our
Distribution Model
|
23rd May 2024
|
|
Last election date
|
24th May 2024
|
|
Payment date
|
17th June 2024
|
|
H1 2024 Interims
Announcement
|
30th July 2024
|
|
Q3 2024 trading update
|
24th October
2024
|
Contacts
About Inchcape
Inchcape is the leading global
automotive distributor, with operations across six
continents.
By combining our in-market expertise
with our unique technology and advanced data analytics, we create
innovative customer experiences that deliver outstanding
performance for our partners - building stronger automotive brands
and creating sustainable growth.
Our distribution platform connects
the products of mobility company partners with customers, and our
responsibilities span product planning and pricing, import and
logistics, brand and marketing to operating digital sales, managing
physical sales and aftermarket service channels.
Delivering for our partners, our
customers and our people - so they can realise their ambitions in
the new world of mobility.
The Group is headquartered in London
and employs around 22,000 people globally.
www.inchcape.com