2019 Q4 Dealer profitability
15 March 2020
Total Industry
Dealer profitability, as measured by net profit as a percentage of sales (NP%S), for the third quarter of 2019 was 0.7%, leaving the average dealer at 1.0% for 2019. This compared to 0.9% for 2018.
State-by-State
New South Wales/Australian Capital Territory
The NP%S of the average NSW/ACT dealer for December quarter 2019 was 0.4%, leaving dealers at 0.8% YTD. This was a marginal improvement over the 0.7% NP%S seen for 2018.
Queensland
The average NP%S for dealers in Queensland for the December quarter was 0.9%, bringing the full year NP%S for these dealers down to 1.2%. Profitability for 2018 was 1.3%.
South Australia/Northern Territory
The average dealer in the SA/NT state group saw NP%S of 1.1% for the fourth quarter of 2019 leaving YTD NP%S at 1.0%. This compared unfavourably to the average dealer profitability of 1.4% for 2018 calendar year.
Victoria/Tasmania
The average dealer in Victoria & Tasmania improved from the break-even position seen in September quarter 2019 to reach NP%S of 0.3% in the final quarter of the year. This left them with NP%S of 0.6% for the year to date which compared to 0.9% for 2018.
Western Australia
In September quarter 2019, dealers in Western Australia saw NP%S of 1.0% for the December quarter, leaving the full year NP%S for 2019 to 1.0%. This was in line with the average dealer NP%S in WA for 2018.
Segments
The dealers in the Volume segment saw profitability for Q4 2019 of 0.6%, which left them with YTD NP%S of 0.9%. The average dealer in the Prestige segment saw NP%S of 0.6% in Q3 2019 and 1.0% for the full year. The dealers in the Luxury segment returned NP%S of 0.7% in Q4 2019 and 0.9% for the year overall.
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