Inchcape (INCH) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue reached £2.2 billion, up 2% at constant currency, supported by new distribution contracts and strong operational execution.

• Nine distribution contracts won in 2024, including key wins in Australia, the Americas, Chile, Caribbean, and Colombia, strengthening market position.

• Disposal of U.K. retail business, now treated as discontinued, strengthens balance sheet and sharpens focus on automotive distribution.

• Group maintains global leadership in automotive distribution, leveraging technology and a diversified portfolio.

Financial highlights

• Q3 revenue reached £2.2 billion, up 2% in constant currency; organic revenue down 1%, acquisitions contributed 3%.

• Translational currency headwinds, notably a 60% Ethiopian birr devaluation, led to reported revenue declining 5% year-over-year.

• Robust performance in Europe, stabilisation in Americas, mixed momentum in APAC.

• Balance sheet strengthened by U.K. retail business disposal for £346 million equity value.

Outlook and guidance

• FY 2024 outlook reiterated, expecting moderated growth at constant currency.

• Reported profits for 2024 will be impacted by currency headwinds, especially from the Ethiopian birr devaluation.

• Confident in medium-term return to higher growth, driven by cash-generative model, diversification, and acquisitions.

• Ongoing cost management discipline to support results.