**Summary of Inchcape PLCs Half-Year Report (H1 2025)**
**Overview**
Inchcape PLC, a leading global automotive distributor, reported its interim results for the six months ending June 30, 2025. Despite a challenging market backdrop, the company demonstrated resilience, executing its **Accelerate+ strategy** and reiterating its FY 2025 guidance.
**Key Financial Highlights**
**Revenue**£4.3 billion, down 4% in constant currency and 3% organically, impacted by lower market volumes and price/mix headwinds. Reported revenue declined by 9% due to translational currency effects.
**Adjusted Operating Profit**£247 million, down 12% in constant currency, with margins at 5.7% (H1 2024: 6.3%).
**Adjusted Profit Before Tax (PBT)**£200 million, down 4% in constant currency, tracking revenue performance.
**Adjusted Basic EPS**Up 2% to 35.5p, supported by share buybacks.
**Free Cash Flow**£72 million, down 68% due to working capital outflows to support supply phasing.
**Balance Sheet**Adjusted net debt of £374 million, with leverage at 0.6x.
**Strategic Progress**
**Accelerate+ Strategy**Nine distribution contract wins in H1 2025, with one immaterial contract exit.
**Acquisition**Bolt-on acquisition of **Askja** in Iceland, expanding geographic footprint and OEM portfolio.
**Shareholder Returns**£220 million returned to shareholders, including £150 million in share buybacks.
**Dividend**Interim dividend of 9.5p per share (H1 2024: 11.3p).
**Regional Performance**
**APAC**Revenue down 15% organically, impacted by weaker premium segment demand, particularly in Asia. Adjusted operating profit down 29%.
**Europe & Africa**Organic revenue flat, with strong performance in Southern Europe. Adjusted operating profit down 1%.
**Americas**Organic revenue up 3%, with strong growth in Colombia and Peru. Adjusted operating profit flat.
**Outlook**
**FY 2025 Guidance**Reiterated, expecting another year of growth, with stronger H2 performance driven by product launches and cost management.
**EPS Growth**Expected to outpace profit growth, supported by operating performance and capital allocation.
**Medium-Term Target**>10% EPS CAGR, supported by cash generation and disciplined capital allocation.
**Management Commentary**
Group CEO Duncan Tait highlighted the company’s robust performance in a fast-moving tariff environment, emphasizing progress in diversifying the business and strengthening OEM partnerships. He expressed confidence in delivering growth in FY 2025 and achieving medium-term targets.
**Conclusion**
Inchcape PLC demonstrated resilience in H1 2025, navigating market challenges while advancing its strategic initiatives. The company remains focused on driving growth, expanding its global footprint, and delivering value to shareholders through disciplined capital allocation and operational efficiency.