Inchcape reports steady Q3 growth and maintains 2024 outlook

LONDON - Inchcape (OTC:INCPY ) plc, a prominent global automotive distributor, has reported a 2% revenue increase at constant currency for the third quarter of 2024, reaching £2.2 billion. Despite a slight 1% dip in organic revenue, the company has seen stabilization in the Americas and robust performance in Europe, with mixed momentum in the Asia-Pacific region.

The company has won nine distribution contracts in the fiscal year 2024, five of which were secured in the second half of the year. New partnerships in Australia, Chile, the Caribbean, and Colombia highlight Inchcape's strategic expansion and diversified portfolio. Following the divestment of its UK retail operations on August 1, 2024, Inchcape's balance sheet has been further fortified, allowing for disciplined capital allocation.

Approximately £83 million worth of shares have been repurchased as part of a £150 million share buyback program, which is expected to be completed in the first quarter of 2025. The company also maintains a healthy pipeline for bolt-on mergers and acquisitions.

Despite facing translational foreign exchange headwinds, including the devaluation of the Ethiopian Birr, Inchcape reiterates its moderated growth outlook for the fiscal year 2024 on a continuing operations basis. The company remains optimistic about returning to higher growth levels in the medium term, driven by further acquisitions, contract wins, and an anticipated recovery in several markets.

Duncan Tait, Group Chief Executive of Inchcape, stated that the company's resilient performance amid a dynamic global automotive environment is a testament to its market-leading distribution platform, operational execution, and diversified business model. Tait emphasized the company's confidence in its year-end outlook and its medium-term growth prospects, supported by a strong balance sheet and differentiated technology capabilities.

This update is based on a press release statement from Inchcape plc.

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Source: Investing.com