The automotive distributor maintained its full-year outlook despite flat adjusted operating profit and margin pressure in Asia-Pacific.
Inchcape (LON:INCH) reported a 9% increase in first-half revenue to £4.7 billion, driven by growth in the Americas and Europe and Africa, which offset weaker performance in Asia-Pacific, particularly Australia. Organic revenue rose 5%, while the Iceland acquisition and currency translation added 2% each. Vehicle volumes grew 9% organically, outpacing the 8% market increase.
Adjusted operating profit remained flat at £248 million, though the margin declined 40 basis points to 5.3% due to pressure in APAC. Adjusted profit before tax fell 10% at constant currency to £188 million, reflecting higher net finance costs. Adjusted earnings per share held steady at £0.355.
The company noted Chinese OEMs accounted for 25% of volumes, excluding BYD and Benelux, with Chinese OEM volumes rising about 40% during the period. Inchcape maintained its full-year outlook amid rapid changes in the global vehicle market.