- Growth was driven by the company's progress in Asia-Pacific and strong performance in Europe and Africa, with an 8% increase in revenue compared to the previous year.
- In Latin America, it demonstrated resilience by maintaining its market share in the declining South American markets and achieving strong performance in Central America and the Caribbean.
Inchcape, the world's leading independent automotive distributor, announced its first-half 2024 results from its headquarters in London. During this period, the company reported revenues of £4.7 billion, representing an 8% increase compared to the same period last year.
The increase includes 4% organic growth and 4% from recent acquisitions in the Asia-Pacific (APAC) region, although partially offset by currency conversion challenges.
The Americas region delivered results in line with expectations, given the decline in South America. In this challenging environment, Inchcape demonstrated its resilience by maintaining its market share. Looking ahead, these markets are expected to recover gradually and moderately. Meanwhile, operations in Central America showed strong performance, driven by the introduction of new brands and entry into new markets.
Regarding the integration with Derco, the company stated that after a year and a half, the process continues to progress as expected, demonstrating its ability to generate synergies and unlock market opportunities.
In recent months, Inchcape Americas has continued to grow, securing new distribution contracts in various countries: JAC commercial vehicles in Colombia; Changan in the Caribbean; and Forland commercial vehicles in Ecuador.
“We are pleased with our positive start to 2024. We have seen additional momentum in APAC, continued strong performance in our Europe and Africa region, and stabilisation in our key markets in the Americas. This gives us the confidence to keep moving forward,” said Duncan Tait, CEO of Inchcape.
Among the results, the agreed sale of its UK retail operations for £346 million stands out. This strategic move aligns with its ongoing portfolio optimisation. Additionally, there was strong momentum in APAC, with widespread organic growth across several markets, including Hong Kong and Singapore, also benefiting from acquisitions made in fiscal year 2023. In Europe and Africa, the company exceeded expectations by achieving accelerated supply, which significantly reduced backorders in some European markets.
Maintaining its disciplined approach to capital allocation, Inchcape announced an increase in its share buyback programme to £150 million, reflecting its excellent cash flow performance and reaffirming its full-year outlook. In some markets, such as the UK, Inchcape has adopted a pure distribution model, enabling it to optimise financial performance and better meet the needs of its manufacturing partners globally.
In the Americas, the company aims to strengthen its position as a distributor and in the retail market, with a model designed to become the most efficient route to market for its manufacturing partners.