Half Year 2025 Inchcape PLC Earnings Call Transcript
Key Points
- Inchcape PLC (IHCPF) returned GBP220 million to shareholders through dividends and share buybacks in the first half of 2025.
- The company won nine new distribution contracts in the first half of 2025, expanding its market presence.
- Inchcape PLC (IHCPF) maintained a strong balance sheet with a leverage of 0.6 times EBITDA.
- The company is optimistic about a stronger second half performance due to new product launches and supportive OEM supply.
- Inchcape PLC (IHCPF) continues to execute its Accelerate+ strategy, focusing on value accretive acquisitions and optimizing its retail network.
- Total Industry Volumes (TIV) in Inchcape PLC (IHCPF)'s markets were down 2% during the period, indicating a challenging market environment.
- Revenues decreased by 4% in constant currency and 3% organically in the first half of 2025.
- Operating margins decreased by 50 basis points to 5.7% due to the deleveraging effect of lower revenues.
- The company faced competitive pressures in the APAC region, particularly in the Premium segment, impacting market share.
- Currency translational effects had a negative impact of GBP7 million on profit before tax in the first half of 2025.
Good morning everyone. I'm Duncan Tait, Group CEO; and I'm joined by our Group CFO, Adrian Lewis. Here's today's agenda. I'll give some context and an overview of our first half performance, Adrian will then run through our results, and then I'll sum up and discuss our outlook for 2025.
Today's presentation is available on our website, and a recording of today's session will be available later today. After the presentation concludes, we'll then take your questions. Either ask them over the phone line or feel free to post them on our webcast platform and Rob, our Head of IR, will ask them on your behalf.
I'll start with some market context. Overall with TIV or Total Industry Volumes in our markets down 2% during the period, we operated against a mixed market backdrop with challenges in certain markets offset by more resilient trends in others.
In the Americas, TIV in our markets were up 5%, while we are seeing pockets of strong growth, many markets remain at or around historical lows. Chile, our
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