The dealer profitability, as measured by net profit as a percentage of sales (NP%S), for the fourth quarter of 2017 was 1.4%. This was 0.2% lower than the fourth quarter of 2016. As a result, the average dealer finished 2017 with NP%S of 1.6%, down from 1.8% in 2016.
New South Wales/Australian Capital Territory
The average NSW/ACT dealer NP%S was 1.4% for the period Oct - Dec 2017 which is 0.5% down from the same period in 2016. The full year profitability of 1.6% for NSW/ACT dealers was down 0.4% from the previous year.
The average NP%S in Queensland was 1.3% for Q4 2017, down from 1.5% in Q4 2016. However, Queensland dealers finished 2017 with an average NP%S of 1.9% - up +0.1% on 2016.
South Australia/Northern Territory
The state group of SA/NT has seen strong profitability during 2017 and, with NP%S of 2.1% for the full year, ends 2017 with the highest profitability of any state in Australia. The final quarter of 2017 did, however, see NP%S for the average SA/NT dealer drop to 1.8% which was down -0.4% on Q4 2016.
Dealers in Victoria & Tasmania saw the lowest profitability of any state in Q4 2017, with NP%S of 1.2%. This was, however, +0.1% better than the same period in 2016. The average dealer in this state group finished 2017 with NP%S of 1.1%, which was slightly behind the 2016 result of 1.2%.
The state of Western Australia recorded the highest NP%S in Q4 2017 at 2.2%. This was +0.5% higher than Q4 2016 and left the dealers in this state with an average of NP%S of 1.8% for the full year (up by +0.1% on 2016).
The dealers in the Volume segment had the highest profitability of 2017 (1.9%) followed by the Prestige segment (1.8%). The Luxury segment continues to be difficult had finished 2017 with profitability of 1.2%.
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