REG - Inchcape PLC - Q1 2025 Trading Update

InchcapeAnnouncement

24/04/2025 07:02

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RNS Number : 9439F  Inchcape PLC  24 April 2025

24 April 2025

Inchcape plc, the leading global automotive distributor, announces its Q1
trading update covering the period from 1 January to 31 March 2025

Q1 2025 trading update
Further progress, with proactive management action in an uncertain market environment

 

o Q1 performance in line with management expectations, with market share gains
in key markets:

o Inchcape new vehicle volumes were down (3)%, ahead of underlying TIV(2),
which was down (4)%

o Group revenue of £2.1bn, down (5)% at constant currency:

§ Organic revenue(1) down (5)%, as expected, reflecting mixed market momentum
and tough comparators

§ Reported revenue down (8)%, driven by translational currency headwinds

o Operational performance reflects Inchcape's diversified and scaled business
model across our regions:

§ Americas: continued improvement in performance, with further growth

§ APAC: headwinds continue in several key markets

§ Europe & Africa: lower revenues, driven by order bank unwind

 

o Continued progress on strategy and capital allocation:

o Further success in scaling and optimising:

§ Seven Distribution contract wins in Q1 2025: Smart in Colombia, Uruguay,
and Ecuador, New Holland in Ethiopia, BYD in Lithuania and Latvia; Iveco in
Hong Kong. Immaterial contract exit of Komatsu in Ethiopia

o Continued disciplined approach to capital allocation, supported by
Inchcape's highly cash generative nature and strong balance sheet:

§ £250m share buyback programme progressing well, with approximately £54m
already repurchased

 

o Inchcape remains well positioned and taking proactive action in an uncertain
market environment:

o Dynamic and complex tariff situation - impacts currently unclear

§ Latest data suggests demand not yet being impacted, beyond usual trends

o Proactive management action to ensure Inchcape remains well positioned to
support key stakeholders:

§ Conservative inventory management, supported by data-driven approach

§ Sustained discipline on costs, strong focus on cash generation, with
leverage remaining well below 1x limit

§ Collaboration with OEM partners to capitalise on emerging opportunities

 

o Guidance for FY 2025 unchanged, excluding potential impacts from the
evolving tariff situation

o Another year of growth expected, with product cycles skewing growth to H2
2025

o Over the medium term, the Group remains focused on delivering against
>10% EPS CAGR target

 

Duncan Tait, Group Chief Executive, commented:

"We achieved further operational and strategic progress during the first
quarter, evidenced by market share gains in key markets and several contract
wins, and the progression of our £250m share buyback programme. As the
leading global automotive distributor, Inchcape remains well positioned to
support our key stakeholders in navigating the current market uncertainty, as
our experienced leadership team has done during challenging market
environments in previous years.

 

"Demand is not currently being impacted by the tariff situation, although we
do expect to see potential impacts on supply from our OEMs, the competitive
environment and market demand. We are taking proactive steps to support our
key stakeholders, including taking a conservative approach to managing
inventory levels, ensuring we remain disciplined on costs, focusing on cash
generation and maintaining our strong balance sheet.

 

"Looking further ahead, we remain excited about Inchcape's growth prospects,
driven by our strong relationships with winning OEMs and our ability to grow
market share through differentiated technology capabilities and contract
wins.  This is supported by our strong balance sheet, cash generation
capabilities and high returns, which provide resilience through-the-cycle.
We remain fully focused on delivering against our target of >10% EPS CAGR
over the medium term."

( )

1: Organic growth is defined as sales growth in operations that have been open
for at least a year at constant foreign exchange rates. In 2024 we disposed of
a non-core retail aftersales business in the Americas and has therefore been
removed from the comparative period.

2. Excluding Thailand and Argentina, which are substantial markets where
Inchcape volumes are immaterial

3. In addition to this press release, we have published Q1 25 market data
which can be found on our website. Link: Results, Reports + Presentations -
Inchcape (https://www.inchcape.com/investors/results-reports-presentations/)

 

 
Conference call today

A conference call for analysts and investors will be held today, Thursday
24(th) April at 08:30 (UK time).

Dial-in details (UK wide): +44 (0) 33 0551 0200; Toll free: 0808 109 0700

Password (if prompted): Quote 'Inchcape Q1' when prompted by the operator.

Webcast details: To register for the webcast of the event please follow this
link (https://brrmedia.news/INCH_Q1_25) . A replay of the call will be
available via the Company's website, www.inchcape.com
(https://www.inchcape.com/) later today.

Market abuse regulation statement

This announcement contains inside information.

 
Financial calendar
 Ex-dividend date for 2024 full year dividend  1(st) May 2025
 Record date                                   2(nd) May 2025
 Last election date                            23(rd) May 2025
 Payment date                                  16(th) June 2025
 AGM                                           15(th) May 2025
 Pre-close trading update                      Late June 2025
 2025 Interim results                          29(th) July 2025
 Q3 trading update                             23(rd) October 2025

 
Contacts
 Inchcape plc (Investor queries):
 Rob Gurner                          +44 (0)7825 189 088  i (mailto:investors@inchcape.com) nvestors@inchcape.com
                                                          (mailto:investors@inchcape.com)
 Krishma Arora

 DGA (media enquiries):
 James Melville Ross                 +44 (0)20 7038 7419  inchcape@dgagroup.com (mailto:inchcape@dgagroup.com)
 James Styles

 
About Inchcape

Inchcape is the leading global automotive distributor, with operations across
six continents. Inchcape works with our mobility company partners in smaller,
more complex and harder-to-reach markets, which tend to be higher growth with
low motorisation rates. 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 over
17,000 people globally.

 

www.inchcape.com (http://www.inchcape.com)

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