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Mar 31, 2024
Group 1 Automotive Q1 2024 Earnings Report
Group 1 Automotive's financial performance for Q1 2024 was marked by record revenues and strategic acquisitions, offset by increased expenses and a decline in profitability metrics.
Key Takeaways
Group 1 Automotive reported record first-quarter revenues of $4.5 billion, an 8.2% increase year-over-year. Net income from continuing operations was $147.4 million, with diluted earnings per share at $10.76. The company successfully integrated nine dealership acquisitions expected to generate $1.0 billion in annual revenues, while also disposing of six dealerships with $260.0 million in annual revenues. The U.S. operations showed double-digit volume growth in new and used vehicle sales, and F&I growth exceeded 16%.
Total revenues reached a record $4.5 billion, an 8.2% increase compared to Q1 2023.
Diluted earnings per share from continuing operations were $10.76, a 3.2% decrease year-over-year.
Parts and service revenues hit a quarterly record of $576.2 million, up 5.1% from the prior year.
Nine dealership acquisitions were completed, expected to add $1.0 billion in annual revenues.
Group 1 Automotive
Group 1 Automotive
Group 1 Automotive Revenue by Segment
Group 1 Automotive Revenue by Geographic Location
Revenue by Segment
New Vehicle Retail Sales Revenue
CapyFin.comUsed Vehicle Retail Sales Revenue
CapyFin.comUsed Vehicle Wholesale Sales Revenue
CapyFin.comParts and Service Sales Revenue
CapyFin.comFinance & Insurance Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.com Forward Guidance
The company expects to realize the full benefit of its U.K. cost reduction efforts in the second quarter and beyond and looks forward to the expansion of its U.K. operations with the pending acquisition of Inchcape’s U.K. retail automotive business planned for Q3 2024.
Positive Outlook
- Continued execution in the U.S. with double digit volume growth in new and used vehicle sales.
- F&I growth over 16% from the prior year.
- Incremental scale through nine dealership acquisitions in the first quarter.
- Expected combined annual revenues of $1.0 billion from acquisitions.
- U.K. team rebounded from a challenging fourth quarter of 2023.
Challenges Ahead
- Some benefits of U.K. cost reduction efforts were seen in Q1 2024, but full benefit expected later.
- Net income from continuing operations decreased by 7.2% compared to the prior year quarter.
- Adjusted net income from continuing operations decreased by 16.7% compared to the prior year quarter.
- Diluted earnings per common share from continuing operations decreased by 3.2% compared to the prior year quarter.
- Adjusted diluted earnings per common share from continuing operations decreased by 13.2% compared to the prior year quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income