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%.
Click on the images below to download the quarterly Dealer Profitability information.
This is a delayed release of industry information available via the eProfitFocus platform. Contact us to become a subscriber and gain access to the latest industry information as it is reported by over 800 dealers in Australia.
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.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities, each of which are separate and independent legal entities, provide services from more than 100 cities across the region, including Auckland, Bangkok, Beijing, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, 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 representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.