Inchcape lifts FY profit expectations after strong Q3

In an update for the period from 1 July to 30 September, the group said revenue rose 24% on a reported basis, or 16% on an organic basis, to £2.1bn, with growth in all regions.

Reported revenue in the distribution segment was up 31%, while the retail segment saw a 10% increase.

Distribution was supported by strong growth in both new and used vehicles and in aftermarket, Inchcape said. Revenue in Asia and Australasia reached its highest quarterly level since early 2021, whilst the Americas posted another record quarter.

In retail, while new vehicle supply remained constrained, Inchcape said it saw growth of used vehicles. In addition, pricing remained robust, enabling the company to deliver revenue growth in vehicles.

Following this "strong" Q3 performance, Inchcape now expects 2022 adjusted profit before tax from continuing operations to be towards the top end, or slightly above, the previously guided range of £350m to £370m.

Chief executive officer Duncan Tait said: "The group delivered another strong performance in Q3. We achieved double-digit organic growth in both distribution, underpinned by higher vehicle volumes, and in retail.

"We continue to see robust demand for vehicles, with record order books across many of our markets, and expect a gradual improvement in vehicle supply. The combination of the strength of Inchcape's business model and geographically diverse footprint means we are well placed to navigate the current macroeconomic climate."