Inchcape profits up 35% for H1 fuelled by global expansion

Inchcape has increased adjusted pre-tax profits by 35% to £249 million over the first six months of the year, fuelled by its acquisition of Derco in Latin America.

The business saw global revenues increase by 45% to £5.6 billion, which it said was supported by the Derco acquisition, as well as a 13% increase in organic revenue growth.

Duncan Tait, Inchcape group chief executive, said: “Inchcape has produced another excellent performance during the first half of 2023, driven by growth from acquisitions and by consistently strong organic growth.

“In particular, the acquisition of Derco has transformed our market position in the Americas and is already having a positive impact on the group.”

Tait said the H1 performance highlights Inchcape's “continued commercial momentum”, supported by its global scale and long-standing OEM relationships, underpinned by a “highly differentiated technology platform”.

He said the business in the Americas and Asia Pacific regions are performing well, while its European operations are also performing well “despite challenges in certain markets”.

Inchcape signed 11 distribution deals and acquisitions in the first half of the year, including a global strategic agreement with Great Wall Motors, the brand behind GWM Ora.

Tait added: “Inchcape continues to build its position as the global leader in automotive distribution thanks to the combination of our people, who bring industry-leading expertise, our diversified geographic footprint and our digital and data capabilities.

“We are uniquely placed to deliver outstanding performance for our OEM partners and drive consolidation in a highly fragmented market, supporting sustainable growth and value for our stakeholders. As a result, we remain confident in our medium-term outlook."