2019 Q1 Dealer profitability
15 June 2019
Dealer profitability, as measured by net profit as a percentage of sales (NP%S), for the first quarter of 2019 was 0.9%. Compared to Q1 2018, Q1 2019 saw falls in revenue and gross profit across all areas of the business and, despite making in 8% savings in Overheads, dealers were not able to offset these revenue contractions. However, average dealer profitability for Q1 2019 (0.7%) compares positively to Q4 2018 (0.5%) mainly due to a recovery in new vehicle gross.
New South Wales/Australian Capital Territory
The average NSW/ACT dealer NP%S for March quarter 2019 was 1.1%. While this was -0.4% down on the first quarter of 2018, it was an uplift over the final quarter of 2018 which finished at 0.3%.
The average NP%S for dealers in Queensland was 0.9% for Q1 2019. This was down from 1.3% in Q4 2018.
South Australia/Northern Territory
The average dealer in the SA/NT state group saw NP%S of 1.3% for the first quarter of 2019. This was marginally down (-0.1%) from Q4 2018, which ended at 1.4%.
After loss-making months in January and February, dealers in Victoria & Tasmania achieved NP%S of 0.7% for the full March quarter. This compared to 0.9% for the fourth quarter of 2018.
Dealers in Western Australia saw NP%S of 0.7% for the first quarter of 2019. This was down -0.3% from December quarter 2018.
The dealers in the Volume segment saw profitability for Q1 2019 of 1.0%, which was in line with Q4 2018. The average dealer in the Prestige segment saw NP%S fall from 1.2% in Q4 2018 to 1.0% in Q1 2019. The dealers in the Luxury segment maintained the same level of NP%S in Q1 2019 as they saw in Q4 2018, returning 0.8%.
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