24th Oct 2024 15:12
(Alliance News) - Inchcape PLC on Thursday reiterated its full-year outlook, despite a decline in revenue for the third quarter of calendar 2024.
The London-based provider of distribution services to original equipment manufacturers in the automotive sector said group revenue in the three months that ended September 30 was GBP2.2 billion, up 2% at constant currency.
However, it also reported that revenue for continuing operations in its third quarter was down 5% year-on-year.
The company expects "moderated growth" for its full-year results, which it said will be supported by ongoing cost management efforts. However, it anticipates translational foreign exchange headwinds in its second half to impact results, too.
Chief Executive Officer Duncan Tait said: "Against a fast-moving global automotive environment, Inchcape delivered a resilient performance, capitalising on our market-leading, global scaled distribution platform, our diversified portfolio and the exceptional operational execution of our regional teams.
"Following the sale of our UK retail business during the period, our success in winning nine contracts so far this year demonstrates our ability to drive growth as a pureplay and automotive distributor. These contracts, along with our healthy pipeline of bolt-on acquisitions, will continue to support the business as we grow in existing markets by building market share, expand into new markets and develop our [original equipment manufacturer] partner portfolio to drive growth and value.
"With our global market leadership position and differentiated technology capabilities to support our [original equipment manufacturer] partners, our distribution platform remains well-positioned for the future, supported by a strong balance sheet. We are therefore reiterating our outlook for the year and remain confident about the medium-term outlook for the group."
Inchcape did not provide a forecast for its 2024 results, though The Financial Times cites a full-year consensus of GBP9.48 billion in revenue.
Shares in Inchcape were down 6.9% at 710.00 pence each in London on Thursday afternoon.
By Emily Parsons, Alliance News reporter
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