Group 1 Automotive Inc. reported higher net income and record revenue in the third quarter as it saw strong growth in revenue from retail vehicle sales and its parts and service business.
Houston-based Group 1 on Wednesday said net income rose 14 percent to $195.7 million in the quarter ended Sept. 30. Net income from continuing operations rose 14 percent to $197.1 million in the third quarter. The latter figure includes Group 1’s U.S. and U.K. operations but not its Brazilian unit, which has been classified as discontinued operations. The company closed on the sale of its Brazil dealerships in early July.
Group 1 said third-quarter revenue increased 22 percent to $4.16 billion, a record.
“Our team delivered another record quarter featuring substantial revenue and profit growth,” Group 1 CEO Earl Hesterberg said in a statement. “Our consolidated vehicle and aftersales revenue growth for the quarter was well over 20 percent and our consolidated aftersales gross profit growth exceeded 25 percent.”
Group 1 said it acquired a BMW and Mini dealership, along with a collision center, in the United Kingdom in September, an acquisition the group said is expected to generate $80 million in annual revenue. Also in September, Group 1 said, it disposed of a dealership in Massachusetts and terminated another in the U.K. A message was sent to Group 1 on Wednesday for details on the Massachusetts dealership.
New-vehicle days’ supply in the U.S. as of Sept. 30 improved to 15 from 11 as of Sept. 30, 2021, and from nine as of Dec. 31, 2021. Group 1 reported having 31 days’ supply of used vehicles in the U.S. as of Sept. 30, up from 25 as of Sept. 30, 2021, but down from 36 as of Dec. 31, 2021.
Third-quarter revenue: $4.16 billion, up 22% from the same quarter a year ago
Third-quarter net income: $195.7 million, up 14%
Third-quarter net income from continuing operations: $197.1 million, up 14%
Third-quarter vehicle sales: Group 1 retailed 31,745 new vehicles, up 22 percent, and 38,172 used vehicles, up 20 percent, in the U.S. On a same-store basis in the U.S., Group 1 sold 24,854 new vehicles, down 2 percent, and 31,518 used vehicles, up 1.5 percent.
Records: Third-quarter revenue
Ranking: Group 1 ranked No. 4 on Automotive News‘ most recent list of the top 150 dealership groups based in the U.S., with retail sales of 146,072 new vehicles in 2021.