2017 Q4 Dealer profitability

6 February 2018

Total Industry 

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.

State-by-State

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.

Queensland

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.

Victoria/Tasmania

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%.

Western Australia

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).


Segments

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%.

Click on the images below to download.

 

 

 

 

General Information Only

This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this presentation , rendering professional advice or services.
Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this presentation.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

About Deloitte Australia

In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit our web site at www.deloitte.com.au.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
© 2017 Deloitte Motor Industry Services Pty Ltd