Inchcape shares tumble as weak APAC demand drags first-half sales

Inchcape PLC (LSE:INCH) saw its shares fall 8.5% during Tuesday’s London session after the British automotive distributor reported a drop in first-half revenues, driven largely by reduced demand for premium vehicles in the Asia-Pacific region amid ongoing U.S. trade tensions.

The company experienced a 15% decline in organic revenue in the Asia-Pacific market at constant currency, a significant setback considering the region accounts for over 25% of Inchcape’s overall sales.

CEO Duncan Tait told Reuters that markets such as Indonesia, the Philippines, and Hong Kong faced the steepest declines. He highlighted that premium vehicle volumes fell 40% in Indonesia and 15% in the Philippines compared with the same period last year.

For the six months ending June 30, Inchcape posted an adjusted operating profit of £247 million ($329 million), marking a 12% decrease at constant currency from the previous year. Profit before tax (PBT) edged down 4% to £200 million.

Total revenue declined 4% to £4.32 billion, with organic sales slipping 3%.

The company announced a 16% reduction in its interim dividend to 9.5p per share.

Jefferies analyst James Wheatcroft noted in a research note, “We expect a -2% decline in consensus PBT estimates for full-year 2025 (FY25) to update for ongoing FX headwinds.”

While Inchcape acknowledged some logistical challenges linked to U.S. tariffs imposed under President Donald Trump, it stated these disruptions have not had a direct material effect on its operations.

Despite these difficulties, the company upheld its full-year outlook, projecting earnings per share growth.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.