Group 1 Automotive Reports Nearly £600m in Global Profits as Inchcape Takeover Nears Completion
The automotive industry is buzzing with excitement as US car dealer Group 1 Automotive announces global profits of nearly £600m, with the final stages of their acquisition of Inchcape nearing completion. The £346m deal is currently awaiting regulatory approval from the Financial Conduct Authority, but that hasn’t stopped Group 1 from continuing to excel in their operations.
In their latest accounts, Group 1 reported a global gross profit of $766.5m (£594.6m) for the three months ending June 30, showing a 1.2% increase from the same period last year. Worldwide revenues also saw a significant 3% rise to $4.7bn (£3.64bn), showcasing the company’s strong performance on a global scale.
Specifically in the UK, Group 1’s operations contributed $775.2m (£600.5m) in revenue, with a year-on-year increase of 2.1%. Despite a slight dip in gross profit from last year, the company still managed to generate $98.8m (£76.55m) in the UK market. Their average gross profit per new car sold was $3,069 (£2,378) with a gross margin of 7.3%, while used cars brought in an average gross profit of $1,392 (£1,078) with a gross margin of 4.9%.
With 8,388 new cars and 10,649 used vehicles sold in the UK in Q1, Group 1’s president and CEO, Daryl Kenningham, expressed optimism about the upcoming acquisition of Inchcape’s UK retail automotive business. He highlighted the company’s focus on expanding their geographic footprint and strengthening their presence in the UK market.
Despite facing challenges such as extreme weather events and technical outages, Group 1’s US team managed to achieve record quarterly revenues in new vehicle sales, parts and service, and F&I. This resilience and dedication to customer service have been key factors in the company’s continued success.
As American investors show increasing interest in UK car dealerships, it’s clear that Group 1 Automotive is at the forefront of this trend. Their strategic acquisitions and strong financial performance position them as a leading player in the global automotive industry. Stay tuned for more updates on Group 1’s exciting developments in the coming months.