#USA #Houston #financial results #Q4 2024 #Group 1 Automotive

Group 1 Automotive Reports Q4 2024 Financial Results

Group 1 Automotive, Inc., a leading name in the automotive retail sector, has released its financial results for the fourth quarter of 2024. The company achieved remarkable revenues amounting to $5.5 billion, reflecting a 23.8% increase compared to the previous year’s fourth quarter.

In terms of performance metrics, the corporation sold 57,939 new vehicles, which is a notable 26.4% increase compared to the same quarter in 2023. Additionally, the sales of used vehicles reached 55,337 units, showing a 23.9% rise. These figures not only signify significant growth but also represent the all-time high number of retail new and used vehicle units sold, with totals reaching 413,364 for the entire year.

Key Financial Highlights

• - Gross Profit: The gross profit for the current quarter hit $879.2 million, marking a 20.3% rise over the equivalent quarter of the previous year. This improvement highlights the company's ability to leverage its operations effectively.
• - Earnings Per Share (EPS): The diluted EPS from continuing operations for the current quarter was recorded at $7.08, down from $7.87 a year earlier, a reflection of some challenges faced during the quarter.
• - Net Income: Group 1 reported net income from continuing operations at $94.6 million, a decrease of 13.1% compared to the previous year’s performance. The adjusted net income from operations saw a slight increase to $133.9 million, a growth of 2.1%.

Full Year Results

The fiscal year 2024 witnessed the company achieving record revenues of $19.9 billion, which represents an 11.5% increase from the prior year's figures. Despite these impressive revenues, the net income from continuing operations fell to $497.0 million, a decrease of 17.4% from $602.0 million recorded in 2023. The diluted EPS for the full year was noted at $36.72, down 14.1% from the previous year.

The company’s president and CEO, Daryl Kenningham, attributed the solid results to effective operational execution in the U.S. region and strategic growth initiatives, including impressive performances in parts and service revenue, which increased by 12.2%.

In the U.K., the company continues to gain footing, with the completion of the Inchcape Retail acquisition, which has significantly enhanced its operational portfolio. The integration of these dealerships is expected to bolster the company’s presence in key U.K. markets, allowing it to cater better to customer demands.

Looking Ahead

Despite facing challenges such as the impact of inflation and restructuring costs amounting to $16.7 million, the company remains optimistic. It plans to enhance its service offerings and strengthen partnerships with prominent OEMs such as Lexus and Mercedes-Benz to ensure sustained growth.

The fiscal year 2025 is set to be pivotal for Group 1, with continuous monitoring of market trends and innovative strategies aimed at maximizing profitability and shareholder value. Investors and stakeholders can look forward to the conference call where senior management will further delve into the specifics of these financial results and growth prospects.

Group 1 Automotive continues to solidify its position as a top automotive retailer, maintaining a keen focus on executing its strategies and delivering robust financial results.