Inchcape reports strong Q3, retail division grows

Inchcape has recorded strong revenue growth in Q3 2022 and it expects to meet or exceed its profit guidance for the full year, it said in a stock market update for the three months to September 30.

The group, which operates vehicle distribution businesses and car dealerships,  reported revenue up 24% to £2.1 billion, up 16% on an organic basis.

The organic growth was led by its Distribution division which increased its revenue by 18%, however its Retail division was up 11% also. Although new vehicle supply remained constrained the company saw growth in used vehicles. The company said pricing remained "robust", enabling it to deliver revenue growth in vehicle sales.

Inchcaoe's board expects pre-tax profit from continuing operations to be towards the top end, or slightly above, its previously guided range of between £350 and £370 million, significant growth on its 2021 result of £296m profit before tax and exceptional items.

Chief executive 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."