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(Alliance News) - Inchcape PLC on Tuesday celebrated the jump in its annual earnings, but said it expects more moderate growth in 2024.
Shares in Inchcape fell 9.4% to 616.50 pence each in London on Tuesday morning.
The London-based automotive distributor said revenue rose 41% to GBP11.45 billion in 2023 from GBP8.13 billion the year before.
This was driven by organic growth and acquisitions, the firm said.
On an organic basis, revenue increased by 12%, led by volume growth, as supply "continued to normalise", with some positive pricing impact on new and used vehicles across Inchcape's distribution businesses.
The company said it also maintained "positive momentum" in the Asia-Pacific region, while performance in Europe and Africa was supported by an order bank unwind during the year. Volume growth across the Americas was flat, however.
The acquisition of Derco Holdings Ltd also contributed to a surge in revenue, the firm said.
Derco, an automotive distributor operating in Latin America, was acquired by Inchcape in January of last year for GBP1.3 billion. The firm had previously reported that post-acquisition cost synergies are expected to reach GBP40 million by the end of 2024.
Meanwhile, pretax profit increased by 24% to GBP413 million from GBP333 million in 2022.
Inchcape proposed a final dividend of 24.3 pence per share, up 14% from 21.30p the year before. This brought its total dividend to 33.9p per share, a 18% increase compared to 28.80p for 2022.
Looking ahead, Inchcape said it expects another year of growth "albeit moderated".
Commenting on its results, Inchape Chief Executive Officer Duncan Tait said: "Inchcape produced a strong set of results in [2023], with an excellent performance across all our regions. The business continues to deliver, with double-digit organic revenue growth, margin progression, [earnings per share] growth and high levels of cash generation. We maintained positive momentum across APAC, supported by acquisitions, while Europe and Africa performed strongly, despite muted demand. The Americas produced growth in many markets, supported by Derco's performance, and while some markets became increasingly challenging, we continued to take market share across the region.
"With our global market leadership position, disciplined approach to capital allocation, digital and data capabilities to support our mobility company partners and our highly cash-generative characteristics, Inchcape is well positioned for the future, and we remain confident about the medium to long-term outlook for the group", he added.
By Sabrina Penty, Alliance News reporter
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