Group 1 Automotive Reports 11.5% Revenue Growth, Acquires Inchcape Retail in U.K.

Group 1 Automotive, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $19.93 billion, a rise of 11.5% from $17.87 billion in 2023. The company’s net income from continuing operations was $498.1 million, down from $601.6 million the previous year, reflecting a decrease in profitability despite higher revenues. The decline in net income was attributed to increased selling, general, and administrative (SG&A) expenses, which rose by 13.1% to $2.18 billion, and a notable increase in floorplan interest expenses, which surged by 69.3% to $108.5 million.

In terms of operational developments, Group 1 Automotive expanded its footprint significantly through the acquisition of Inchcape Retail in the U.K., which added 54 dealership locations and three collision centers to its portfolio. This acquisition, completed on August 1, 2024, approximately doubled the company's presence in the U.K. Additionally, the company acquired nine dealerships in the U.S. during the year, further enhancing its market position. The total consideration for these acquisitions was approximately $690.4 million in the U.S. and $517 million for the Inchcape acquisition.

The company also reported an increase in vehicle sales, with retail new vehicle sales rising by 13.7% to $9.97 billion and retail used vehicle sales increasing by 8.5% to $6.18 billion. The total number of retail new vehicles sold reached 203,677 units, a 16% increase from the previous year, while retail used vehicle sales rose to 209,687 units, an 11.7% increase. However, the average sales price per unit for new vehicles decreased slightly by 1.0% to $49,817, and for used vehicles, it fell by 2.9% to $29,472, indicating pressure on margins.

Looking ahead, Group 1 Automotive expressed optimism about its growth strategy, focusing on maximizing returns through disciplined acquisitions and operational efficiencies. The company plans to continue leveraging its scale to enhance customer experiences and improve profitability. However, it also acknowledged potential challenges, including economic conditions, interest rate fluctuations, and evolving market dynamics, particularly in the electric vehicle sector. The company remains committed to monitoring these factors closely as it navigates its growth trajectory in the automotive retail industry.