Q1 2025 trading update: further strategic and operational progress

Inchcape delivered further operational progress during the first quarter, in line with our expectations, and evidenced by market share gains in key markets and contract wins. Our operational performance during the period reflects Inchcape’s diversified and scaled business model across our regions.

Q1 performance in line with management expectations, with market share gains

• Inchcape new vehicle volumes were down 3%, ahead of underlying total industry volumes (TIV)², which was down 4%
• Group revenue of £2.1bn, down 5% at constant currency:
  • • Organic revenue¹ down 5%, as expected, reflecting mixed market momentum and challenging year-on-year comparisons
    • Reported revenue down 8%, driven by translational currency headwinds
• 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

Continued progress on strategy and capital allocation

• 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, and Iveco in Hong Kong. Immaterial contract exit of Komatsu in Ethiopia.
• Continued disciplined approach to capital allocation, supported by Inchcape’s strong cash generation capabilities and robust balance sheet:
  • £250m share buyback programme progressing well, with approximately £54m already repurchased

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.”  

For further information, please view the RNS.