UK automotive distributor Inchcape has reported Inchcape’s adjusted operating profit down by 12% in H1 in constant currency, to £247m, with margins at 5.7%. The company reported that adjusted operating profit saw a 17% decrease.
The international car distribution company reported a 15% drop in organic revenue at constant currency from the Asia-Pacific region, which accounts for 28% of its total revenue. Weaker demand in the region for high-end and premium vehicles is a consequence of US trade tariff measures and their negative impact on general business sentiment.
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Neverthless, the company kept its full year guidance unchanged.
The company’s H1 2025 revenue from continuing operations stood at £4.32bn ($5.80bn), with an operating profit of £233m and a total profit of £129m.
Inchcape saw a 4% decline in constant currency group revenue and a 3% organic drop primarily due to lower market volumes and price/mix headwinds.
The company said it continued to implement the Accelerate+ strategy during H1 2025 to scale its business through value-accretive acquisitions and new distribution contracts.
Inchcape Group CEO Duncan Tait said: “We continued to execute Accelerate+, further diversifying our business across geographies and strengthening our OEM partnerships, consolidating our position as the leading global independent automotive distributor.
“We remain excited about the future for Inchcape. Our Accelerate+ strategy will help us to deliver another year of growth in FY 2025 with our confidence growing about the second half of the year.”
The second quarter (Q2) of 2025 saw group revenue at £2.2bn, with a 3% organic growth down and currency headwinds of 5%. This marked an improvement from the first quarter’s 5% organic growth, bolstered by better organic revenue trends in Africa, Europe, and the Asia-Pacific region.
Looking ahead, Inchcape reiterates its FY 2025 outlook, expecting another year of growth in the H2 of the year, driven by product launches with robust demand, ongoing cost management, inventory and working capital optimisation, and retail network enhancements.
This month, Inchcape agreed to acquire Iceland’s automotive distributor Askja and associated business, with 16% market share.
Inchcape anticipates delivering “higher EPS growth” relative to profit growth for the FY 2025, in line with its guidance of over 10% EPS CAGR.
Tait added: “We continue to target >10% EPS CAGR over the medium term, supported by our clear capital allocation policy, our market leadership position, our diversified, scaled and highly cash generative business model, our on-going focus on cost discipline and inventory management and our highly differentiated technology platform.”
