Inchcape Reports Impressive Increase in Profit
In a recent announcement, Inchcape revealed a significant surge in pretax profit, attributing the growth to strong performance across various regions. Despite this success, the company warned of moderate growth prospects for the year ahead due to challenges in specific markets.
Financial Highlights
- Pretax Profit: Surged by 24% to reach £413 million in 2023, with adjusted pretax profit increasing by 35% to GBP502 million.
- Revenue: Showing a remarkable 41% increase to GBP11.4 billion, driven by factors such as the acquisition of Derco, a Latina American automotive distributor.
Market Performance
- Asia-Pacific: Witnessed positive momentum, notably supported by strategic acquisitions.
- Europe and Africa: Strong performance reported despite subdued demand.
- Distribution Contracts: Noted a record number of distribution contracts secured during the previous year.
Future Outlook
Looking ahead to 2024, Inchcape anticipates only moderate growth due to market weaknesses. However, a brighter outlook is forecasted for the medium-to-long term, with expectations of increased growth levels as markets, especially in the Americas, are predicted to recover.
Capital Allocation
Maintaining its existing capital allocation policy, Inchcape announced an 18% increase in total dividend per share to 33.9 pence.
This strategic balance between financial performance and market considerations positions Inchcape for sustained success in the evolving automotive landscape.