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Investing.com -- Global automotive distributor Inchcape PLC (LON:INCH) on Thursday reported 8% organic revenue growth in the third quarter of fiscal year 2025, in line with company expectations and against softer comparators.
The company generated £2.3 billion in revenue, up 7% at both constant currency and reported basis.
Inchcape’s vehicle volumes increased 13% during the quarter, outperforming the 5% growth in total industry volumes across its markets. This marks a significant improvement from the first half of 2025, when the company experienced a 2% decline in total industry volumes. The company maintained its full-year 2025 guidance, reiterating expectations for another year of growth at prevailing currency rates.
"We are pleased with our performance in the third quarter, which was in line with our expectations," said Duncan Tait, Group Chief Executive. "Inchcape’s organic revenue growth was supported by market growth, a contribution from distribution contract wins and on-going product launches."
The company reported improving market conditions in the Americas region, with performance ahead of the market. In the Asia-Pacific region, Inchcape saw improving performance relative to the first half, with product launches on track despite continued headwinds in Asia. The Europe & Africa region maintained positive momentum and market outperformance.
Inchcape continued executing its Accelerate+ strategy during the quarter, winning an additional distribution contract with GAC AION in Greece while exiting several immaterial contracts. The company also completed the acquisition of Askja in Iceland, entering a new market, and disposed of a non-core retail-only business in Australia representing approximately £100 million in annualized revenue.
The company expects stronger growth in the second half of 2025 compared to the first half, underpinned by product launches progressing as planned and ongoing cost management initiatives. Inchcape also anticipates higher earnings per share growth relative to profit growth, in line with its medium-term target of more than 10% EPS compound annual growth rate.