The Penske Automotive Group reported $683.00 million in consolidated retail automotive dealership service and parts revenue for the first quarter of 2023 — an increase of 16.5% compared to the previous year, with U.S. service and parts revenue up 12.4% and international service and parts revenue up 24.2%.
Consolidated same-store service and parts revenue increased 10.4% (up 13.9% excluding unfavorable foreign currency fluctuations). The rise in same-store service and parts revenue breaks down as an 18.6% rise in vehicle preparation and body shop revenue, a 14.4% increase in warranty revenue and 8.6% uptick in customer-pay revenue.
Penske’s retail automotive dealership business generated $389.90 million in consolidated service and parts gross profit for the quarter — an increase of 13.8% year over year. On a same-store basis, consolidated service and parts gross profit rose 8.9% (up 12.3% excluding unfavorable foreign currency fluctuations.
According to management, the increase in same-store gross profit stemmed from a 12.1% rise in vehicle preparation and body shop gross profit, a 10.8% increase in warranty gross profit and a 7.2% uptick in customer-pay gross profit.
Consolidated service and parts gross margin slipped from 59.8% to 58.4% year over year, with same-store gross margin decreasing from 59.8% to 59.0%.
Michigan-based Penske is one of the largest global automotive retailers as measured by revenue. For the quarter, the company generated 54% of its total retail automotive dealership revenue in the United States (including Puerto Rico) and 46% elsewhere. As of March 31, 2023, Penske operated 333 retail automotive franchised dealerships of which 148 were located in the United States and 185 were located outside of the United States, primarily in the United Kingdom.
