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Akastor ASA: Third Quarter Results 2024

30.10.2024 by admin

FORNEBU, Norway, Oct. 30, 2024 /PRNewswire/ —

Third Quarter Highlights

Net capital employed increased by NOK 0.1 billion during the quarter to NOK 4.8 billion. Equity stood at NOK 5.6 billion at the end of the quarter, corresponding to NOK 20.4 per share, up from NOK 20.2 per share at the end of the last quarter.
Akastor remained in a net cash position through the quarter, with no draw on corporate facilities.
HMH delivered an adjusted EBITDA of USD 46 million for the quarter, up 32 percent year-on-year. The company completed the acquisition of Drillform, a leader in automated drilling tools, in July.
Post-quarter end, Mr. Daniel “Dan” W. Rabun was appointed as Chairman of the Board of Directors of HMH.
AKOFS Offshore achieved near-100 percent utilization on AKOFS Seafarer and Aker Wayfarer during the period. AKOFS Santos saw improved performance, recording a utilization of 85 percent, including 10 days of maintenance downtime.
DDW Offshore operated all three vessels throughout the quarter, with a significant contract backlog secured post-quarter end, providing a solid foundation for 2025.

Akastor CEO Karl Erik Kjelstad comments:

“Akastor maintained its strong financial position through the third quarter, with net cash on account and no draw on corporate facilities, leaving us well positioned for potential future distributions. Our portfolio companies delivered another solid quarter, confirming their attractive positions within their respective niches. Despite slightly lower activity in HMH’s Service segment, the company achieved impressive year-on-year EBITDA growth. We were also pleased to see HMH complete the acquisition of Drillform, further advancing its growth strategy by expanding onshore capabilities. Both AKOFS Offshore and DDW Offshore delivered solid performances, with all vessels in operation throughout the quarter and high utilization. Additionally, DDW Offshore secured a significant contract backlog after the quarter ended, positioning the company well for the future.”

HMH

HMH reported revenues of USD 213 million in the quarter, with an adjusted EBITDA of USD 46 million, corresponding to an EBITDA margin of almost 22 percent.

Revenues from Aftermarket Services were USD 141 million in the quarter, down 4 percent year-on-year and down 6 percent quarter-on-quarter driven by lower service order intake in the quarter. Order intake within this segment was down 10 percent year-on-year and down 8 percent quarter-on-quarter driven by flat rig activity and restrained spending by customers.

Revenues from Projects, Products & Other were USD 73 million in the quarter, up 30 percent year-on-year and up 25 percent quarter-on-quarter driven by increased product shipments.

AKOFS Offshore

AKOFS Offshore reported revenues of USD 38 million and EBITDA of USD 11 million in the quarter.

The three vessels AKOFS Seafarer, AKOFS Santos and Aker Wayfarer all operated under their respective contracts through the full period. Aker Wayfarer delivered a revenue utilization of 99 percent, while AKOFS Seafarer delivered 98 percent. AKOFS Santos reported a revenue utilization of 85 percent in period, affected by a maintenance stop of 10 days.

DDW Offshore

DDW Offshore reported revenues of NOK 97 million and EBITDA of NOK 40 million in the quarter, up from NOK 53 million and NOK 18 million respectively in the same period last year. Revenue and EBITDA in period was affected by higher utilization than previous periods, as all three vessels were in operation through the full period. Skandi Emerald operated for Petrofac, while Skandi Atlantic was on contract with Chevron, both recording 100 percent utilization in the period. Skandi Peregrino operated in the spot market from Aberdeen through the third quarter after being reactivated and classed earlier this year, with a recorded utilization of 40 percent for the period.

Post quarter-end, the vessels Skandi Peregrino and Skandi Atlantic secured one-year contracts with an international oil company in Australia, set to commence in January and March 2025, respectively. These contracts provide solid visibility into 2025 and strengthen DDW Offshore’s presence in the Australian market.

Financial holdings

Net financials were negative NOK 59 million in the quarter, which included a non-cash net foreign exchange loss of NOK 27 million. Other financial investments contributed negatively with NOK 42 million.

Share of net profit from equity-accounted investees contributed positively with NOK 58 million. HMH contributed positively with NOK 100 million, whilst AKOFS Offshore contributed negatively with NOK 42 million.

Consolidated financial figures

Akastor’s consolidated revenue and EBTDA include earnings from subsidiaries which represent a minor part of Akastor’s total Net Capital Employed. The most relevant proxy for value development of Akastor is therefore the financial performance of each of the largest investments such as HMH, NES Fircroft and AKOFS Offshore. With this in mind, consolidated revenue and EBITDA of Akastor in the third quarter was NOK 99 million and NOK 25 million, respectively. Net profit in the third quarter was NOK 6 million.

Financial calendar

Fourth Quarter Results 2024: February 13, 2025

Media Contact

Øyvind Paaske
Chief Financial Officer
Tel: +47 917 59 705
E-mail: oyvind.paaske@akastor.com

Akastor is a Norway-based oil-services investment company with a portfolio of industrial holdings and other investments. The company has a flexible mandate for active ownership and long-term value creation.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

This information was brought to you by Cision http://news.cision.com.

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SOURCE Akastor ASA

Earnings News

Wolters Kluwer 2024 Nine-Month Trading Update

30.10.2024 by admin

Wolters Kluwer 2024 Nine-Month Trading Update

Alphen aan den Rijn, October 30, 2024 – Wolters Kluwer, a global leader in professional information, software solutions and services, today releases its scheduled 2024 nine-month trading update.

Highlights

Full-year 2024 guidance reiterated.
Nine-month revenues up 6% in constant currencies and up 6% organically.
- Recurring revenues (83% of total revenues) up 7% organically; non-recurring revenues up 2%.
- Expert solutions revenues (59% of total revenues) grew 8% organically.
- Cloud software revenues (18% of total revenues) grew 16% organically.
Nine-month adjusted operating profit up 8% in constant currencies.
- Nine-month adjusted operating profit margin increased.
Nine-month adjusted free cash flow up 9% in constant currencies.
- Third quarter benefitted from favorable timing of vendor payments.
Net-debt-to-EBITDA ratio 1.8x as of September 30, 2024.
Share buyback 2024: on track to reach €1 billion by year-end.
Share buyback 2025: mandate signed to repurchase up to €100 million in January and February 2025.

Nancy McKinstry, CEO and Chair of the Executive Board, commented: “I am pleased to report 6% organic growth through the first nine months, supported by continued growth in recurring revenues, led by our expert solutions including cloud-based software platforms. Investments in product innovation remained at record levels as we continue to pursue opportunities to support our customers in their drive for improved performance, outcomes, and efficiencies. We are on track to meet our full-year guidance.”

Nine Months to September 30, 2024

Total revenues were up 6% in the first nine months of 2024, despite a slightly weaker U.S. dollar in the third quarter. Excluding the effect of currency, acquisitions, and divestments, organic growth was 6% in the first nine months (9M 2023: 5%).

Recurring revenues (83% of total revenues) sustained 7% organic growth (9M 2023: 7%; HY 2024: 7%). Within recurring revenues, cloud software revenues grew 16% organically (9M 2023: 15%). Non-recurring revenues (17% of total revenues) increased 2% organically (9M 2023: 2% decline), benefitting from the improved trend in Legal Services transactional fees in the Financial & Corporate Compliance division compared to last year. Apart from transactional fees, non-recurring revenues include print books, on-premise software licenses, software implementation services, and other non-subscription products and services.

Revenues from North America (64% of total) grew 6% organically (9M 2023: 4%) while revenues from Europe (28% of total) grew 5% (9M 2023: 7%). Asia Pacific & ROW (8% of total) grew 7% organically (9M 2023: 8%).

Nine-month adjusted operating profit increased 8% in constant currencies. The nine-month adjusted operating profit margin improved, mainly driven by our Financial & Corporate Compliance and Legal & Regulatory divisions. Restructuring expenses, which are included in adjusted operating profit, increased. Product development spend (CAPEX + OPEX) was maintained at 11% of revenues (9M 2023: 11% of revenues).

Health: Nine-month revenues increased 6% in constant currencies and 6% organically (9M 2023: 6%). Clinical Solutions recorded 8% organic growth (9M 2023: 7%), led by clinical decision tool UpToDate and our clinical drug databases (Medi-Span and UpToDate Lexidrug). The UpToDate patient engagement solution delivered good growth. Surveillance, compliance, and terminology software saw improved organic growth, mainly reflecting the Invistics drug diversion business acquired in June 2023. Health Learning, Research & Practice recorded 3% organic growth (9M 2023: 4%), with good organic growth in medical research against a challenging comparable alongside improved growth in education and practice. In September 2024, we completed the previously announced divestment of Learner’s Digest International (LDI).

Tax & Accounting: Nine-month revenues increased 5% in constant currencies, reflecting the transfer of our Chinese legal research solution (BOLD) from Tax & Accounting to Legal & Regulatory at the start of the year. On an organic basis, revenues grew 7% (9M 2023: 8%). The North American business recorded 7% organic growth (9M 2023: 8%), driven by double-digit organic growth in our cloud-based software suite, CCH Axcess. While outsourced professional services continued to see strong growth, print books and other non-recurring revenues recorded slower growth. Tax & Accounting Europe sustained 7% organic growth (9M 2023: 7%) and began integrating the cloud software business acquired in September from the Isabel Group. Tax & Accounting Asia Pacific & ROW organic revenues were stable.

Financial & Corporate Compliance: Nine-month revenues increased 5% in constant currencies. On an organic basis, revenues rose 5% (9M 2023: 1%), with recurring revenues up 6% organically (9M 2023: 5%) and non-recurring transactional revenues up 3% (9M 2023: 7% decline). Legal Services grew 7% organically (9M 2023: 1%), supported by services subscriptions and 6% growth in Legal Services transactions. Subscriptions to our Beneficial Ownership Information (BOI) platform continued to build, in line with expectations. Financial Services recorded 3% organic growth (9M 2023: 0%), reflecting growth in recurring revenues and a stabilization in transactional revenues.

Legal & Regulatory: Nine-month revenues grew 8% in constant currencies, partly reflecting the transfer of BOLD into the division and bolt-on acquisitions. On an organic basis, revenues grew 5% (9M 2023: 4%). Legal & Regulatory Information Solutions grew 5% organically (9M 2023: 4%), supported by 7% growth in digital information solutions. Legal & Regulatory Software revenues grew 7% organically (9M 2023: 5%), led by double-digit organic growth at Legisway and continued growth in ELM transactional revenues.

Corporate Performance & ESG: Nine-month revenues increased 7% in constant currencies. On an organic basis, revenues increased by 7% (9M 2023: 8%), as recurring cloud software revenues sustained growth of 12%, but non-recurring on-premise license fees and software implementation services declined 2% (9M 2023: 0%). Our EHS & ESG¹ unit (Enablon) delivered 14% organic growth (9M 2023: 15%), driven by 21% growth in cloud-based software revenues, partly offset by a decline in on-premise software license revenues. Within Corporate Performance Management, the CCH Tagetik CPM platform delivered 9% organic growth (9M 2023: 14%), driven by 17% organic growth in cloud software accompanied by a decline in on-premise software licenses and modest growth in services. Our Audit & Assurance (TeamMate) and Finance, Risk & Reporting (OneSumX) units posted modest organic growth for the nine-month period.

Corporate: Costs decreased in constant currencies as increased personnel costs were more than offset by lower miscellaneous expenses.

Cash Flow and Net Debt

Nine-month adjusted operating cash flow increased 7% in constant currencies, reflecting fewer large vendor payments in the third quarter. Nine-month adjusted free cash flow increased 9% in constant currencies.

Total dividends paid to shareholders amounted to €491 million in the first nine months, including the 2023 final dividend and the 2024 interim dividend (withholding tax to be paid in October). Total acquisition spending, net of cash acquired and including transaction costs, was €332 million in the first nine months, primarily related to the acquisition of Isabel Group assets completed in September 2024. Share repurchases amounted to €762 million in the first nine months.

As of September 30, 2024, net debt was €3,356 million (year-end 2023: €2,612 million), reflecting acquisition spending and cash returns to shareholders. Twelve months’ rolling net-debt-to-EBITDA was 1.8x (compared to 1.5x at year-end 2023).

Sustainability Update

Throughout 2024, we have continued to invest in programs designed to attract, engage, retain, and develop talent globally. Our workforce turnover rate remained stable throughout the first nine months at around 10%. Human resources programs currently emphasize career development and manager enablement while continuing initiatives to support an inclusive and engaging workplace culture. In the third quarter, we rolled out our Annual Compliance Training, which covers cybersecurity, data privacy, and business ethics. As of the end of October, over 99% of employees globally have completed the exercise.

Our global real estate team made better-than-expected progress in further rationalizing our office footprint, having been able to exit certain office leases earlier than planned. Through the first nine months of 2024, we have achieved an 8% organic reduction in office space (m2) compared to year-end 2023, thereby reducing our Scope 1 and 2 greenhouse gas emissions.

We continued work to align our sustainability reporting with the European Sustainability Reporting Standards (ESRS) set by the EU Corporate Sustainability Reporting Directive (CSRD).

Share Cancellation 2024

On September 13, 2024, we cancelled 10.0 million shares that were held in treasury, as approved by shareholders at the AGM in May 2024. Following this cancellation, the number of issued ordinary shares is now 238,516,153. As of September 30, 2024, 235.8 million shares were outstanding, and 2.7 million shares were held in treasury.

Share Buyback Program 2024 and 2025

In February 2024, we announced a 2024 share buyback program of up to €1 billion. In the year to date, through October 28, 2024, we have completed approximately 85% of this buyback, having repurchased €853 million in shares (5.8 million shares at an average price of €147.64). A third-party mandate is in place to complete the final tranche of €147 million in the period starting October 31, 2024, up to and including December 27, 2024.

For the upcoming year 2025, we have this week signed a third-party mandate to execute up to €100 million in share buybacks for the period starting January 2, 2025, up to and including February 24, 2025.

We continue to believe this level of share buybacks leaves us with ample headroom to support our dividend plans, to sustain organic investment, and to make selective acquisitions. The share repurchases may be suspended, discontinued, or modified at any time.

Third party mandates are governed by the limits of relevant laws and regulations (in particular Regulation (EU) 596/2014) and Wolters Kluwer’s Articles of Association. Repurchased shares are added to and held as treasury shares and are either cancelled or held to meet future obligations arising from share-based incentive plans. We remain committed to our anti-dilution policy which aims to offset the dilution caused by our annual incentive share issuance with share repurchases.

Full-Year 2024 Outlook

Our group-level guidance for 2024 is unchanged. See table below. We expect sustained good organic growth in 2024, in line with the prior year, and an increase in the adjusted operating profit margin.

Full-Year 2024 Outlook
Performance indicators	2024 Guidance	2023 Actual
Adjusted operating profit margin*	26.4%-26.8%	26.4%
Adjusted free cash flow**	€1,150-€1,200 million	€1,164 million
ROIC*	17%-18%	16.8%
Diluted adjusted EPS growth**	Mid- to high single-digit	12%
Guidance for adjusted operating profit margin and ROIC is in reporting currency and assumes an average EUR/USD rate in 2024 of €/$1.10. *Guidance for adjusted free cash flow and diluted adjusted EPS is in constant currencies (€/$ 1.08). Guidance reflects share repurchases of €1 billion in 2024.

In 2023, Wolters Kluwer generated over 60% of its revenues and adjusted operating profit in North America. As a rule of thumb, based on our 2023 currency profile, each 1 U.S. cent move in the average €/$ exchange rate for the year causes an opposite change of approximately 3 euro cents in diluted adjusted EPS².

We include restructuring costs in adjusted operating profit. We now expect 2024 restructuring expenses to increase to approximately €20-€25 million (FY 2023: €15 million). We expect adjusted net financing costs³ in constant currencies to be approximately €55 million. We expect the benchmark tax rate on adjusted pre-tax profits to be in the range of 23.0%-24.0% (FY 2023: 22.9%).

Capital expenditures are expected to be at the upper end of our guidance range of 5.0%-6.0% of total revenues (FY 2023: 5.8%). We continue to expect the full-year 2024 cash conversion ratio to be around 95% (FY 2023: 100%) due to lower net working capital inflows.

Our guidance assumes no additional significant change to the scope of operations. We may make further acquisitions or disposals which can be dilutive to margins, earnings, and ROIC in the near term.

2024 outlook by division

Our guidance for full-year 2024 organic revenue growth by divisions is summarized below. We expect the increase in full-year adjusted operating profit margin to be driven by our Finance & Corporate Compliance, Legal & Regulatory, and Corporate Performance & ESG divisions.

Health: we expect full-year 2024 organic growth to be in line with prior year (FY 2023: 6%). The division margin is expected to decline slightly due to one-time write-offs to streamline the portfolio.

Tax & Accounting: we expect full-year 2024 organic growth to be slightly below prior year (FY 2023: 8%) due to slower growth in non-recurring revenues and the absence of one-time favorable events in Europe. The division margin is expected to decline slightly due to increased product investment.

Financial & Corporate Compliance: we expect full-year 2024 organic growth to be higher than prior year (FY 2023: 2%) with Legal Services transactions recovering and Financial Services transactions stable.

Legal & Regulatory: we expect full-year 2024 organic growth to be in line with or slightly better than prior year (FY 2023: 4%).

Corporate Performance & ESG: we expect full-year 2024 organic growth to be in line with or slightly higher than in the prior year (FY 2023: 9%) as Finance, Risk & Reporting revenues stabilize.

About Wolters Kluwer

Wolters Kluwer WKL is a global leader in information, software solutions and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.

Wolters Kluwer reported 2023 annual revenues of €5.6 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,400 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX, Euro Stoxx 50, and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

For more information, visit www.wolterskluwer.com, follow us on LinkedIn, Facebook, YouTube, and Instagram.

Financial Calendar
February 26, 2025 Full-Year 2024 Results

March 12, 2025 Publication of 2024 Annual Report

May 6, 2025 First-Quarter 2025 Trading Update

May 15, 2025 Annual General Meeting of Shareholders
May 19, 2025 Ex-dividend date: 2024 final dividend ordinary shares

May 20, 2025 Record date: 2024 final dividend

June 11, 2025 Payment date: 2024 final dividend ordinary shares

June 18, 2025 Payment date: 2024 final dividend ADRs

July 30, 2025 Half-Year 2025 Results

August 26, 2025 Ex-dividend date: 2025 interim dividend ordinary shares

August 27, 2025 Record date: 2025 interim dividend

September 18, 2025 Payment date: 2025 interim dividend

September 25, 2025 Payment date: 2025 interim dividend ADRs

November 5, 2025 Nine-Month 2025 Trading Update

Media	Investors/Analysts
Dave Guarino	Meg Geldens
VP, Head of Global Communications	Investor Relations
t +1-646 954 8215	t +31 (0)172-641-407
press@wolterskluwer.com	ir@wolterskluwer.com

Stefan Kloet
Associate Director, Global Communications
m +31 (0)612 22 36 57
press@wolterskluwer.com

Forward-looking Statements and Other Important Legal Information
This report contains forward-looking statements. These statements may be identified by words such as “expect”, “should”, “could”, “shall” and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; conditions created by global pandemics, such as COVID-19; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer’s businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Elements of this press release contain or may contain inside information about Wolters Kluwer within the meaning of Article 7(1) of the Market Abuse Regulation (596/2014/EU). Trademarks referenced are owned by Wolters Kluwer N.V. and its subsidiaries and may be registered in various countries.

¹ EHS & ESG (formerly EHS/ORM) = environmental, health, and safety & environmental, social, and governance.
² This rule of thumb excludes the impact of exchange rate movements on intercompany balances, which is accounted for in adjusted net financing costs in reported currencies and determined based on period-end spot rates and balances.
³ Adjusted net financing costs include lease interest charges. Guidance for adjusted net financing costs in constant currencies excludes the impact of exchange rate movements on currency hedging and intercompany balances.

2024.10.30 Wolters Kluwer Nine-Month 2024 Trading Update

Earnings News

Outokumpu interim report January-September 2024 – Solid third-quarter adjusted EBITDA driven by business areas Europe and Ferrochrome

30.10.2024 by admin

HELSINKI, Oct. 30, 2024 /PRNewswire/ —

Highlights in Q3 2024

Stainless steel deliveries were 459,000 tonnes (449,000 tonnes)*.
Adjusted EBITDA amounted to EUR 86 million (EUR 51 million).
EBITDA was EUR 81 million (EUR 18 million).
ROCE amounted to -7.1% (5.3%).
Free cash flow was EUR -113 million (EUR -24 million incl. discontinued operations).
Earnings per share was EUR 0.05 (EUR -0.13).
On July 9, 2024, Kati ter Horst was appointed as the President and CEO of Outokumpu and she started after the reporting period on October 1, 2024.

Highlights in Q1–Q3/2024

Stainless steel deliveries were 1,371,000 tonnes (1,455,000 tonnes)*.
Adjusted EBITDA amounted to EUR 180 million (EUR 445 million).
EBITDA was EUR 174 million (EUR 401 million).
ROCE amounted to -7.1% (5.3%).
Free cash flow was EUR -105 million (EUR 134 million incl. discontinued operations).
Earnings per share was EUR -0.02 (EUR 0.30)
The impact of the political strike in Finland in the first half of 2024 was approximately EUR -60 million.
The dividend of EUR 110 million from the year 2023 was paid in the second quarter.
The most recent share buyback program was completed on February 29, 2024, and Outokumpu repurchased 8,357,545 shares during 2024.

*Figures in parentheses refer to the corresponding period for 2023, unless otherwise stated.

Key figures (EUR million, or as indicated)	Q3/24	Q3/23	Q2/24	Q1-Q3/24	Q1-Q3/23	2023
Sales	1,518	1,531	1,540	4,537	5,447	6,961
EBITDA	81	18	56	174	401	416
Adjusted EBITDA ¹⁾	86	51	56	180	445	517
EBIT	32	-45	1	14	214	-100
Adjusted EBIT ¹⁾	31	-12	1	15	261	274
Result before taxes	22	-60	-7	-14	187	-133
Net result for the period	20	-55	-5	-8	131	-111
Earnings per share	0.05	-0.13	-0.01	-0.02	0.30	-0.26
Return on capital employed, rolling 12 months (ROCE), % ²⁾	-7.1	5.3	-8.7	-7.1	5.3	-2.1
Capital expenditure	37	31	37	133	84	170
Free cash flow³⁾	-113	-24	35	-105	134	290
Stainless steel deliveries, 1000 tonnes	459	449	468	1,371	1,455	1,906

Net result for the period from all operations incl discontinued operations	20	-56	-5	-8	136	-106

¹⁾Adjusted EBITDA or EBIT = EBITDA or EBIT – Items affecting comparability.
²⁾ The balance sheet component in 2022 includes the equity component of discontinued operations.
³⁾ The 2023 reference periods include discontinued operations.

During 2022, Outokumpu announced that it had signed an agreement to divest the majority of the Long Products business operations to Marcegaglia Steel Group and Outokumpu reclassified its Long Products businesses to be divested assets held for sale and discontinued operations. The divestment was completed on January 3, 2023, and the gain on sale of EUR 5 million was reported in discontinued operations. In this report, all the comparative numbers are reported as continued operations without the impact of the gain on sale, if not otherwise stated.

President & CEO Kati ter Horst:

“I am honored to have started as Outokumpu’s President and CEO and be given the opportunity to lead the company into its next strategic phase. My immediate focus will be on ensuring a smooth transition and continuing to deliver on the EUR 350 million profitability improvement target by the end of 2025. I want to thank my predecessor Heikki Malinen for his leadership to strengthen Outokumpu’s balance sheet and making us the undisputed sustainability leader in stainless steel. This is a good foundation on which to build our future success.

My priorities are to reinforce our operational performance, strengthen our competitiveness, and maintain financial discipline. These are even more important now, as we are facing challenging market conditions both in Europe and the Americas. For us at Outokumpu, financial discipline means acting promptly in response to a changing market environment. In this situation, we adjust our business and steer it towards focusing on cash flow and shareholder returns.

During the third quarter, Outokumpu’s adjusted EBITDA increased to EUR 86 million, while stainless steel deliveries decreased by 2% compared to the previous quarter. Imports into both Europe and North America have continued to increase, and put pressure on stainless steel prices. However, we maintained our strong market positions, ranking number one in Europe and number two in North America.

In business area Europe, adjusted EBITDA improved to EUR 59 million, and stainless steel deliveries remained stable compared to the previous quarter. Within advanced materials, I am pleased to welcome Rolf Schencking to Outokumpu’s Leadership Team. He brings with him extensive technical and commercial experience in the specialty stainless steel business.

In business area Americas, adjusted EBITDA amounted to EUR 5 million, and stainless steel deliveries decreased by 8% compared to the previous quarter. Delivery volumes reflect the deterioration in the manufacturing sector, along with some postponements of deliveries to the fourth quarter due to flooding at our Mexico mill. However, our long-term view regarding the U.S. market remains highly positive.

Business area Ferrochrome had a solid result thanks to excellent operational performance and adjusted EBITDA reached EUR 29 million. The demand for our low emission ferrochrome remained resilient. Our Kemi mine is the only chrome mine in the EU area with the lowest carbon footprint globally and it will become the first carbon-neutral mine in the world by 2025.

Safety is our priority. Our safety performance remained at a world-class level despite a somewhat higher incident rate in the third quarter. We want to ensure that all our employees get home safe every day.

Decarbonization is one of the key focus areas in Outokumpu’s strategy. I am pleased to state that we are firmly committed to this path and are making good progress. We have maintained our recycled material content at 95%, which is the highest in the industry and a key contributor to us having the industry’s lowest carbon footprint.

I am very excited to embark on this journey at Outokumpu. My message is one of continuity and confidence – Outokumpu has a strong foundation, and there is great potential ahead. I look forward to working with our employees, customers, suppliers and other stakeholders to advance Outokumpu’s strategic journey.”

Outlook for Q4 2024

Group stainless steel deliveries in the fourth quarter are expected to decrease by 0–10% compared to the third quarter, driven by deteriorating markets for both business areas Europe and Americas.

The planned maintenance break in Tornio, Finland is expected to have approximately EUR -10 million impact on business area Europe’s adjusted EBITDA.

Energy costs for business area Europe are expected to increase by approximately EUR 5 million.

With the current raw material prices, some raw material-related inventory and metal derivative losses are forecasted to be realized in the fourth quarter.

Guidance for Q4 2024:

Adjusted EBITDA in the fourth quarter of 2024 is expected to be lower compared to the third quarter.

Results

Q3 2024 compared to Q3 2023

Outokumpu’s sales in the third quarter of 2024 decreased to EUR 1,518 million (EUR 1,531 million). Total stainless steel deliveries were 2% higher. Deliveries in business area Europe slightly decreased, while increased in business area Americas.

Adjusted EBITDA in the third quarter of 2024 increased to EUR 86 million (EUR 51 million). Profitability was supported by higher realized prices for stainless steel. Higher realized prices in Europe were partly offset by lower realized prices in Americas. The positive impact from realized prices was more than offset by the unfavorable raw material impacts resulting from tight scrap market. Costs increased due to salary inflation and maintenance work, partly offset by lower electricity and consumable prices. Profitability was supported by improved result for business area Ferrochrome. Raw material-related inventory and metal derivative gains amounted to EUR 10 million (losses of EUR 27 million), driven by a positive metal hedging result.

EBIT amounted to EUR 32 million in the third quarter of 2024 (EUR -45 million). EBIT in the comparison period includes a loss of EUR 26 million related to sale of the Long Products business in Sweden and other items affecting comparability. ROCE for rolling 12 months was -7.1% (5.3%), mainly due to weaker profitability and the significant impairment booking related to the renegotiated hot rolling contract in business area Americas at the end of 2023.

Net result increased to EUR 20 million in the third quarter of 2024 (EUR -55 million) and earnings per share amounted to EUR 0.05 (EUR -0.13). Net financial expenses in the third quarter of 2024 amounted to EUR 11 million (EUR 15 million) and interest expenses remained stable at EUR 15 million (EUR 15 million).

Q3 2024 compared to Q2 2024

Outokumpu’s sales decreased to EUR 1,518 million in the third quarter of 2024 (Q2/2024: EUR 1,540 million). Total stainless steel deliveries were 2% lower compared to the previous quarter. In business area Europe, stainless steel deliveries remained stable while decreased in business area Americas.

Outokumpu’s adjusted EBITDA increased to EUR 86 million in the third quarter (Q2/2024: EUR 56 million). In the second quarter, the impact of the political strike on adjusted EBITDA was approximately EUR -30 million.

Realized prices for stainless steel remained stable in both Europe and Americas, and product mix in business area Europe was slightly weaker. Profitability was supported by positive raw material impacts and improved result for business area Ferrochrome. Raw material-related inventory and metal derivative gains amounted to EUR 10 million in the third quarter (Q2/2024: losses of EUR 8 million), driven by a positive metal hedging result.

EBIT amounted to EUR 32 million in the third quarter of 2024 (Q2/2024: EUR 1 million). ROCE for the rolling 12 months was -7.1% (Q2/2024: -8.7%). ROCE development during the third quarter was impacted by slightly improved profitability. Both periods were affected by the significant impairment booking related to the renegotiated hot rolling contract in business area Americas at the end of 2023.

Net result in the third quarter amounted to EUR 20 million (Q2/2024: EUR -5 million) and earnings per share was EUR 0.05 (Q2/2024: EUR -0.01). Net financial expenses amounted to EUR 11 million (Q2/2024: EUR 9 million) and interest expenses to EUR 15 million (Q2/2024: EUR 16 million).

Q1–Q3/2024 compared to Q1–Q3/2023

During January–September 2024, Outokumpu’s sales decreased to EUR 4,537 million (EUR 5,447 million). Total stainless steel deliveries were 6% lower compared to the previous year, driven by weaker market and the political strike in Finland. Stainless steel deliveries decreased significantly in business area Europe, while significantly increasing in business area Americas.

Outokumpu’s adjusted EBITDA decreased to EUR 180 million in January–September 2024 (EUR 445 million). Profitability was negatively impacted by lower realized prices for stainless steel in both Europe and Americas and the unfavorable effects resulting from tight scrap market. Variable costs decreased, mainly due to lower energy and consumable prices and more efficient production, but the positive impact was partly offset by increased fixed costs, mainly in business area Americas due to higher tolling fee.

The impact of the political strike on adjusted EBITDA was approximately EUR -60 million in the first half of the year. Due to the political strike, the majority of Outokumpu’s stainless steel and ferrochrome operations in Finland as well as the Port of Tornio in Finland were shut down for four weeks. The strike also indirectly impacted the company’s operations in other countries through the disruption to internal material flows in both Europe and the Americas.

Raw material-related inventory and metal derivative losses amounted to EUR 2 million in January–September 2024 (losses of EUR 45 million).

EBIT amounted to EUR 14 million (EUR 214 million) in January–September 2024. EBIT in the comparison period includes a loss of EUR 26 million related to sale of the Long Products business in Sweden and other items affecting comparability. ROCE for the rolling 12 months was -7.1% (5.3%), mainly driven by weaker profitability and the significant impairment booking related to the renegotiated hot rolling contract in business area Americas at the end of 2023.

Net result declined to EUR -8 million (EUR 131 million) in January–September 2024 and earnings per share was EUR -0.02 (EUR 0.30). Net financial expenses amounted to EUR 30 million (EUR 31 million) and interest expenses to EUR 48 million (EUR 46 million).

Adjusted EBITDA by segment (EUR million)	Q3/24	Q3/23	Q2/24	Q1-Q3/24	Q1-Q3/23	2023
Europe	59	-29	28	91	144	148
Americas	5	53	21	49	232	285
Ferrochrome	29	21	22	73	73	96
Other operations and intra-group items	–8	5	-15	-34	-4	-12
Total adjusted EBITDA	86	51	56	180	445	517

Items affecting comparability in EBITDA (EUR million)	Q3/24	Q3/23	Q2/24	Q1-Q3/24	Q1-Q3/23	2023
Europe	-4	—	0	-2	-7	-52
Americas	—	-5	—	—	-8	-16
Ferrochrome	—	—	—	—	—	-3
Other operations	0	-28	0	-4	-29	-31
Total items affecting comparability in EBITDA	-5	-33	0	-6	-44	-102

Total EBITDA	81	18	56	174	401	416

A live webcast and conference call today, October 30, at 3.00pm EET

A live webcast and conference call to analysts, investors and representatives of media will be arranged today at 3.00 pm EET at https://outokumpu.videosync.fi/q3-2024/register hosted by President and CEO Kati ter Horst and CFO Marc-Simon Schaar.

To ask questions, please participate in the conference call by registering at https://palvelu.flik.fi/teleconference/?id=50049025. After registration you will receive phone number and a conference ID to access the conference call. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.

All the interim report materials, a link to the webcast and later on its recording will be available at www.outokumpu.com/en/investors.

For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669

Media: Päivi Allenius, SVP – Communications and Brand, tel. +358 40 753 7374,

Outokumpu media desk, tel. +358 40 351 9840, e-mail media(at) outokumpu.com
Outokumpu Corporation

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/outokumpu-oyj/r/outokumpu-interim-report-january-september-2024—solid-third-quarter-adjusted-ebitda-driven-by-busi,c4058612

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SOURCE Outokumpu Oyj

Earnings News

Microsoft Earnings Are Imminent; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

30.10.2024 by admin

Microsoft Corporation MSFT will release earnings results for its first quarter, after the closing bell on Wednesday, Oct. 30.

Analysts expect the Redmond, Washington-based company to report quarterly earnings at $3.1 per share, up from $2.73 per share in the year-ago period. Microsoft projects to report revenue of $64.51 billion for the quarter, compared to $49.66 billion a year earlier, according to data from Benzinga Pro.

Microsoft recently accused Alphabet Inc. GOOGL GOOG subsidiary Google of orchestrating covert lobbying campaigns designed to undermine its cloud computing business while deflecting attention from its regulatory challenges.

Microsoft shares gained 1.3% to close at $431.95 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Truist Securities analyst Joel Fishbein maintained a Buy rating with a price target of $600 on Oct. 28. This analyst has an accuracy rate of 73%.
Bernstein analyst Mark Moerdler maintained an Outperform rating and cut the price target from $501 to $500 on Oct. 25. This analyst has an accuracy rate of 71%.
Citigroup analyst Tyler Radke maintained a Buy rating and cut the price target from $500 to $497 on Oct. 23. This analyst has an accuracy rate of 69%.
Keybanc analyst Jackson Ader maintained an Overweight rating and raised the price target from $490 to $505 on Oct. 18. This analyst has an accuracy rate of 64%.
Piper Sandler analyst Brent Bracelin maintained an Overweight rating and cut the price target from $485 to $470 on Oct. 18. This analyst has an accuracy rate of 74%.

Considering buying MSFT stock? Here’s what analysts think:

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Lastest news News

iPod Co-Creator Tony Fadell Dismisses ChatGPT Type LLMs Saying 'We're Trying To Make Science Fiction Happen' — Bashes Silicon Valley's Entitlement

30.10.2024 by admin

Former Apple Inc. executive and co-creator of the iPod, Tony Fadell has expressed his disapproval of Silicon Valley’s entitlement culture and the use of large language models.

What Happened: On Tuesday, Fadell, who is also the founder and former CEO of Nest Labs, took the stage at TechCrunch Disrupt 2024.

During the conversation, he underscored the importance of “mission-driven a**holes” in the development of top-tier technology products.

Drawing a distinction between egocentric and mission-driven individuals, Fadell commended the latter for their attention to detail and critique of work, not people.

The tech mogul also took a swipe at Silicon Valley’s entitlement, humorously commenting on the culture of Googlers and their work habits. He voiced his disapproval of startups hiring Googlers due to their perceived entitlement.

“We said, we will never hire people from the East Coast,” referring to his time at General Magic in the 90s, adding, “because they had to have their driver, or they had to have their company car, and they had to have their corporate lunch and their special executive toilet.”

“And now I wake up today, and Silicon Valley has turned into that s***, and I’m like, get me the f*** out of here, yeah? Entitlement everywhere,” he stated.

Fadell further criticized LLMs, describing them as “know-it-alls.” He argued that while LLMs can be beneficial in certain areas like entertainment, their adoption should not be universal due to their propensity for errors.

“If you look at artificial-specific models, they work really well,” he said, adding, “They don’t hallucinate, but LLMs are trying to be this general thing because we’re trying to make science fiction happen.”

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

Why It Matters: Fadell’s critique of LLMs comes at a time when AI technology is increasingly being integrated into various sectors, including healthcare.

Last year, Google’s medical AI chatbot, Med-PaLM 2, began testing at the Mayo Clinic. The chatbot, a variant of the PaLM 2 language model, was specifically tailored for medical institutions.

Despite concerns about AI hallucinations, a 2023 study also suggested that chatbots like OpenAI’s ChatGPT could be more empathetic than actual doctors.

However, not all industry leaders share the same optimism about AI in healthcare.

Earlier this year in September, billionaire investor Chamath Palihapitiya expressed a more cautious view, acknowledging the potential of AI but also highlighting its limitations.

“It’s not all roses, but some areas if you imagine them, I’ll give you a couple if you want, are just bananas, I think,” he stated at the time.

Photo by @kmeron On Flickr

Check out more of Benzinga’s Consumer Tech coverage by following this link.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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News Real estate

Six modest-income families realize the dream of home ownership: Habitat for Humanity Québec and MONTONI Foundation wrap up construction of joint residential project in Lachine

30.10.2024 by admin

Visuals available here

LACHINE, QC, Oct. 29, 2024 /CNW/ – Habitat for Humanity Québec (HHQ) and the MONTONI Foundation today held an official key handover ceremony for six Greater Montréal families who are now the proud owners of their homes. The event, attended by Maja Vodanovic, Mayor of Lachine, marks a further step forward in the drive to provide access to home ownership, and a new chapter for HHQ. The project, the first on such a large scale since the pandemic, introduced an innovative construction model that enables HHQ to build more quickly and efficiently and optimize its impact across Québec, as it seeks to end the cycle of poverty by helping modest-income families.

More than $1,600,000 donated

The project in the borough of Lachine illustrates the commitment and generosity of a number of donors, who together contributed $1,641,954. The MONTONI Foundation played an essential role, with a $300,000 contribution. Montoni Group, for its part, raised just over $530,000 thanks to generous donations from partners and suppliers, and also built the project at cost, thus maximizing the impact of each dollar invested. Another $190,000 was raised through teambuilding activities organized by HHQ, in combination with $112,000 in donations from national partners. In-kind donations of materials, totalling some $90,000, along with $419,800 in support from Canada Mortgage and Housing Corporation (CMHC) rounded out the roster of contributions.

Access to home ownership: measurable results

For these families with a total of 12 children who will now have the chance to grow up in these residential units, the project means much more than simply a place to live: each dwelling unit is truly a place to call home, where everyone can thrive. Living in healthy, decent and safe home brings tangible benefits. Results observed among families supported by HHQ after moving into their new homes include the following:

86% report increased happiness;
70% say their health has improved;
65% see an increase in their children’s self-confidence;
58% note an improvement in their financial situation;
65% mention the positive impact on their children’s academic success.

“Our work together with the MONTONI Foundation, Montoni Group and the many other donors involved with this project has had a significant impact on the lives of six Québec families who are now first-time homeowners. The completion of construction of this project means new momentum for Habitat for Humanity Québec and enables us to strengthen our role as a lever for social mobility on behalf of families in Québec, all while offering a solution to the current housing crisis.”

– Shirlane Day, Executive Director, Habitat for Humanity Québec

Building for Tomorrow: an ambitious campaign

The Lachine project is a high point of HHQ’s 2023–26 major campaign, Building for Tomorrow, which aims to amplify the organization’s impact with modest-income families in the province.

In a recent report, CMHC estimates that nearly 620,000 additional housing units will be needed by 2030 to restore housing affordability in Québec. Against this backdrop, HHQ believes that it is essential for all players in the community to multiply their solutions in a concerted effort to enable as many families living in precarious conditions as possible to aspire to a better life.

In addition, since 2019, the Government of Canada, via the CMHC, has committed a total of $779,000 to Habitat for Humanity Quebec projects. This financial commitment from the National Housing Co-Investment Fund includes a $302,000 investment from the Black Families Co-Investment Fund.

“Organizations like Habitat for Humanity are invaluable partners as we work to tackle the housing crisis and ensure that every Canadian has a safe place to call their own. I am proud that we could support these new homes in Montréal, and I wish all the families the very best as they start their new chapters.”

– The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities.

In March 2023, the Government of Canada and Habitat for Humanity Canada announced an additional $25 million investment to build 500 new affordable homes across Canada over the next three years. This brings the total federal investment in Habitat for Humanity to $80.8 million through the Government of Canada’s Affordable Housing Fund.

About Habitat for Humanity Québec

Habitat for Humanity Québec responds to the urgent need to help families in Québec with modest incomes who live in precarious housing conditions, both in terms of their health and the security of their homes, helping them to become homeowners. For more information or to contribute to the cause, visit https://quebec.habitat.ca/en/.

About the MONTONI Foundation

Focused on prevention, the MONTONI Foundation works with and supports charitable organizations that help families in Québec and abroad, under the theme of empowerment. For more information: www.fondationmontoni.ca.

SOURCE MONTONI Foundation

View original content: http://www.newswire.ca/en/releases/archive/October2024/29/c9118.html

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Earnings News

Group 1 Automotive Reports Third Quarter 2024 Financial Results

30.10.2024 by admin

Current quarter diluted earnings per common share from continuing operations of $8.68 and current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) of $9.90
Gross profit of $852.7 million from total revenues of $5.2 billion, both quarterly records, and an 8.4% and 11.0% increase, respectively, over the comparable prior year period

HOUSTON, Oct. 30, 2024 /PRNewswire/ — Group 1 Automotive, Inc. GPI (“Group 1” or the “Company”), a Fortune 250 automotive retailer with 260 dealerships located in the U.S. and U.K., today reported financial results for the third quarter of 2024 (“current quarter”).

Current quarter net income from continuing operations was $117.1 million. Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $133.5 million. Current quarter diluted earnings per common share from continuing operations was $8.68. Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $9.90. Current quarter adjusted diluted earnings per common share from continuing operations excludes $14.8 million in pre-tax acquisition costs incurred during the current quarter.

“We continue to grow revenues through acquisitions. During the quarter, we executed strategic U.K. transactions which added 58 dealerships. We are excited to expand our operations across the broader U.K. with great brands, and will continue to explore growth-oriented opportunities,” said Daryl Kenningham, Group 1’s President and Chief Executive Officer. “We were pleased to have set quarterly records for new and used vehicle units sold, while GPUs only declined $161 and $63, sequentially from the second quarter, for new and used vehicles, respectively. Global stop sales on certain vehicle models with luxury manufacturers BMW and Lexus impacted sales during the quarter. Weather events in Texas early in the quarter and in the southeast later in the quarter also impacted our business.”

Reconciliations for financial results, non-GAAP metrics, and diluted earnings per common share between continuing and discontinued operations are included in the accompanying financial tables.

Current Quarter Results Overview

Total revenues for the current quarter were $5.2 billion, a 11.0% increase compared to $4.7 billion for the third quarter of 2023 (“prior year quarter”).

Net income from continuing operations for the current quarter was $117.1 million, a 28.6% decrease compared to $164.1 million for the prior year quarter. Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $133.5 million, a 21.4% decrease compared to $169.8 million for the prior year quarter. In the current quarter, net income from continuing operations and adjusted net income from continuing operations were primarily impacted by higher interest expense and depreciation versus the prior year quarter.

Current quarter diluted earnings per common share from continuing operations was $8.68, a 25.6% decrease compared to $11.67 for the prior year quarter. Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $9.90, an 18.0% decrease compared to $12.07 for the prior year quarter.

Third Quarter 2024 Key Performance Metrics (year-over-year comparable period basis)	Consolidated		Same Store (a non-GAAP measure)
Reported:	3Q24	Change	3Q24	Change
Total revenues	$5.2B	+11.0 %	$4.5B	(1.8) %
Total gross profit (“GP”)	$852.7M	+8.4 %	$737.5M	(3.5) %
NV units sold	53,775	+18.6 %	44,411	+0.5 %
NV GP per retail unit (“PRU”)	$3,407	(20.5) %	$3,449	(19.5) %
Used vehicle (“UV”) retail units sold	55,907	+10.1 %	47,635	(3.3) %
UV retail GP PRU	$1,574	(1.7) %	$1,530	(5.3) %
Parts & service (“P&S”) GP	$367.0M	+17.0 %	$318.8M	+4.9 %
P&S Gross Margin (“GM”)	55.6 %	+0.3 %	55.1 %	(0.2) %
Finance and Insurance (“F&I”) revenues	$214.1M	+7.4 %	$192.6M	(0.6) %
F&I GP PRU	$1,952	(5.9) %	$2,093	+0.9 %
Selling, General and Administrative (“SG&A”) expenses as a % of GP	69.4 %	+621 bps	68.4 %	+456 bps
Adjusted SG&A expenses (a non-GAAP measure) as a % of GP	67.5 %	+410 bps	66.2 %	+313 bps

Corporate Development

We remain focused on quickly and efficiently integrating our acquisitions into our existing operations to drive incremental value creation for our shareholders.

In July 2024, the Company acquired four Mercedes-Benz dealerships located in the U.K. This acquisition is expected to generate $105.0 million in annual revenues with new car sales recorded as net revenue under the agency model.

In August 2024, the Company completed the acquisition of Inchcape Retail automotive operations in the U.K. This acquisition is expected to generate $2.7 billion in annual revenues.

In October 2024, the Company acquired a BMW/MINI dealership located in the U.K. This acquisition is expected to generate approximately $125.0 million in annual revenues.

Year-to-date, the Company has successfully acquired and is in the process of integrating dealership operations with total expected annual revenues of approximately $3.9 billion.

During the current quarter, the Company disposed of one dealership located in California. This disposed dealership generated approximately $65.0 million in annual revenues, bringing year-to-date total disposed annual revenues for the Company to $400.0 million.

Share Repurchases

During the current quarter, the Company repurchased 85,245 shares at an average price per common share of $349.55, for a total of $29.8 million, excluding excise taxes of $0.3 million.

During the nine months ended September 30, 2024, the Company repurchased 438,165 shares, representing approximately 3.2% of the Company’s outstanding common shares at January 1 of the current year, at an average price per common share of $295.80, for a total of $129.6 million, excluding excise taxes of $1.1 million.

As of September 30, 2024, the Company had an aggregate 13.3 million outstanding common shares and unvested restricted stock awards. As of September 30, 2024, the Company had $174.8 million remaining on its Board authorized common share repurchase program.

Future repurchases may be made from time to time, based on market conditions, legal requirements, and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.

Third Quarter 2024 Earnings Conference Call Details

Group 1’s senior management will host a conference call today at 10:00 a.m. ET to discuss the third quarter 2024 financial results. The conference call will be simulcast live on the Internet at group1corp.com/events. A webcast replay will be available for 30 days. A copy of the Company’s presentation will also be made available at http://www.group1corp.com/company-presentations.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic:	1-888-317-6003
International:	1-412-317-6061
Passcode:	2417011

A telephonic replay will be available following the call through November 6, 2024, by dialing:

Domestic:	1-877-344-7529
International:	1-412-317-0088
Replay Code:	5473305

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 260 automotive dealerships, 338 franchises, and 44 collision centers in the United States and the United Kingdom that offer 35 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, and www.facebook.com/group1auto.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our strategic investments, goals, plans, projections and guidance regarding our financial position, results of operations and business strategy, including the annualized revenues of recently completed acquisitions or dispositions and other benefits of such currently anticipated or recently completed acquisitions or dispositions. These forward-looking statements often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” “foresee,” “may” or “will” and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions, on a timely basis, if at all and the risks associated therewith, (h) our ability to successfully integrate recent and future acquisitions and realize the expected benefits from consummated acquisitions, (i) foreign exchange controls and currency fluctuations, (j) the armed conflicts in Ukraine and the Middle East, (k) the impacts of continued inflation and potential changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, (l) our ability to maintain sufficient liquidity to operate, (m) a material failure in or breach of our vendors’ information technology systems and other cybersecurity incidents, and (n) the receipt of any insurance or other recoveries. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES, SAME STORE DATA, AND OTHER DATA

In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, profitability improvement initiatives, and other events outside of normal, or “core,” business and operations, by considering alternative financial measures not prepared in accordance with U.S. GAAP. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, out-of-period adjustments, legal matters, gains and losses on dealership franchise or real estate transactions, and catastrophic events, such as hailstorms, hurricanes, snow-storm, and employment compensation costs associated with the CDK outage. Because these non-core charges and gains materially affect the Company’s financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income, adjusted diluted earnings per share, and constant currency. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under U.S. GAAP and may be defined differently by, and not be comparable to similarly titled measures used by, other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with U.S. GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures.

In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors, and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.

In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than U.S. dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. The Same Store amounts presented include the results of dealerships for the identical months in each period presented in comparison, commencing with the first full month in which the dealership was owned by us and, in the case of dispositions, ending with the last full month it was owned by us. Same Store results also include the activities of our corporate headquarters.

Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented.

Investor contacts:

Terry Bratton
Manager, Investor Relations
Group 1 Automotive, Inc.
ir@group1auto.com

Media contacts:

Pete DeLongchamps
Senior Vice President, Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
pdelongchamps@group1auto.com

Kimberly Barta
Head of Marketing and Communications
Group 1 Automotive, Inc.
kbarta@group1auto.com

Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com

Group 1 Automotive, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In millions, except per share data)

	Three Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change
REVENUES:
New vehicle retail sales	$ 2,567.6	$ 2,264.5	$ 303.0	13.4 %
Used vehicle retail sales	1,656.5	1,559.6	96.9	6.2 %
Used vehicle wholesale sales	123.2	114.7	8.5	7.4 %
Parts and service sales	660.0	566.9	93.1	16.4 %
Finance, insurance and other, net	214.1	199.4	14.7	7.4 %
Total revenues	5,221.4	4,705.1	516.3	11.0 %
COST OF SALES:
New vehicle retail sales	2,384.4	2,070.2	314.1	15.2 %
Used vehicle retail sales	1,568.5	1,478.2	90.3	6.1 %
Used vehicle wholesale sales	122.8	117.1	5.7	4.9 %
Parts and service sales	293.1	253.4	39.6	15.6 %
Total cost of sales	4,368.7	3,918.9	449.8	11.5 %
GROSS PROFIT	852.7	786.2	66.4	8.4 %
Selling, general and administrative expenses	591.6	496.7	94.9	19.1 %
Depreciation and amortization expense	29.5	23.1	6.4	27.8 %
Asset impairments	—	4.8	(4.8)	(100.0) %
INCOME FROM OPERATIONS	231.6	261.6	(30.0)	(11.5) %
Floorplan interest expense	31.1	16.5	14.6	88.7 %
Other interest expense, net	39.8	26.5	13.3	50.1 %
Other expense (income)	1.1	(1.9)	3.0	157.2 %
INCOME BEFORE INCOME TAXES	159.6	220.5	(60.9)	(27.6) %
Provision for income taxes	42.5	56.4	(13.9)	(24.7) %
Net income from continuing operations	117.1	164.1	(47.0)	(28.6) %
Net income (loss) from discontinued operations	0.2	(0.2)	0.4	178.8 %
NET INCOME	$ 117.3	$ 163.9	$ (46.6)	(28.4) %
Less: Earnings allocated to participating securities	2.4	4.0	(1.6)	(40.6) %
Net income available to diluted common shares	$ 114.9	$ 159.9	$ (45.0)	(28.1) %
Diluted earnings per share from continuing operations	$ 8.68	$ 11.67	$ (2.99)	(25.6) %
Diluted earnings (loss) per share from discontinued operations	$ 0.01	$ (0.02)	$ 0.03	182.2 %
DILUTED EARNINGS PER SHARE	$ 8.69	$ 11.65	$ (2.96)	(25.4) %
Weighted average dilutive common shares outstanding	13.2	13.7	(0.5)	(3.7) %
Weighted average participating securities	0.3	0.3	(0.1)	(20.4) %
Total weighted average shares	13.5	14.1	(0.6)	(4.1) %
Effective tax rate on continuing operations	26.6 %	25.6 %	1.0 %

Group 1 Automotive, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In millions, except per share data)

	Nine Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change
REVENUES:
New vehicle retail sales	$ 7,114.3	$ 6,463.4	$ 650.9	10.1 %
Used vehicle retail sales	4,526.5	4,359.0	167.4	3.8 %
Used vehicle wholesale sales	333.5	339.2	(5.6)	(1.7) %
Parts and service sales	1,810.8	1,677.3	133.5	8.0 %
Finance, insurance and other, net	603.1	554.8	48.3	8.7 %
Total revenues	14,388.3	13,393.7	994.6	7.4 %
COST OF SALES:
New vehicle retail sales	6,601.6	5,880.9	720.7	12.3 %
Used vehicle retail sales	4,275.7	4,122.2	153.6	3.7 %
Used vehicle wholesale sales	335.2	338.6	(3.5)	(1.0) %
Parts and service sales	814.0	762.3	51.6	6.8 %
Total cost of sales	12,026.5	11,104.0	922.5	8.3 %
GROSS PROFIT	2,361.8	2,289.7	72.2	3.2 %
Selling, general and administrative expenses	1,564.9	1,439.4	125.5	8.7 %
Depreciation and amortization expense	81.6	68.6	12.9	18.8 %
Asset impairments	—	7.7	(7.7)	(100.0) %
INCOME FROM OPERATIONS	715.4	773.9	(58.5)	(7.6) %
Floorplan interest expense	76.3	44.7	31.6	70.6 %
Other interest expense, net	102.5	72.1	30.4	42.1 %
Other expense	0.7	2.3	(1.6)	(69.4) %
INCOME BEFORE INCOME TAXES	535.8	654.8	(118.9)	(18.2) %
Provision for income taxes	133.5	161.6	(28.1)	(17.4) %
Net income from continuing operations	402.4	493.2	(90.8)	(18.4) %
Net income (loss) from discontinued operations	1.0	(0.3)	1.3	405.1 %
NET INCOME	$ 403.3	$ 492.9	$ (89.5)	(18.2) %
Less: Earnings allocated to participating securities	8.6	12.2	(3.6)	(29.5) %
Net income available to diluted common shares	$ 394.7	$ 480.6	$ (85.9)	(17.9) %
Diluted earnings per share from continuing operations	$ 29.61	$ 34.81	$ (5.20)	(14.9) %
Diluted earnings (loss) per share from discontinued operations	$ 0.07	$ (0.02)	$ 0.09	418.1 %
DILUTED EARNINGS PER SHARE	$ 29.68	$ 34.79	$ (5.11)	(14.7) %
Weighted average dilutive common shares outstanding	13.3	13.8	(0.5)	(3.7) %
Weighted average participating securities	0.3	0.4	(0.1)	(17.3) %
Total weighted average shares	13.6	14.2	(0.6)	(4.1) %
Effective tax rate on continuing operations	24.9 %	24.7 %	0.2 %

Group 1 Automotive, Inc.
Additional Information — Consolidated
(Unaudited)

	September 30, 2024	December 31, 2023	Increase/ (Decrease)	% Change
SELECTED BALANCE SHEET INFORMATION:
(In millions)
Cash and cash equivalents	$ 58.7	$ 57.2	$ 1.5	2.6 %
Inventories, net	$ 2,752.2	$ 1,963.4	$ 788.8	40.2 %
Floorplan notes payable, net ⁽¹⁾	$ 2,269.5	$ 1,565.4	$ 704.1	45.0 %
Total debt	$ 2,891.1	$ 2,098.8	$ 792.3	37.8 %
Total equity	$ 2,976.2	$ 2,674.4	$ 301.8	11.3 %

⁽¹⁾ Amounts are net of offset accounts of $99.8 and $275.2, respectively.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
United States	73.8 %	81.8 %	78.4 %	80.7 %
United Kingdom	26.2 %	18.2 %	21.6 %	19.3 %

NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Lexus	23.8 %	24.0 %	25.2 %	23.1 %
Volkswagen/Audi/Porsche/SEAT/SKODA	16.3 %	15.5 %	14.5 %	15.9 %
BMW/MINI	9.6 %	10.7 %	10.6 %	11.4 %
Honda/Acura	9.4 %	7.4 %	9.4 %	7.6 %
Chevrolet/GMC/Buick	9.0 %	10.2 %	9.2 %	8.8 %
Ford/Lincoln	6.9 %	7.3 %	7.1 %	7.8 %
Mercedes-Benz/Sprinter	8.9 %	6.0 %	6.9 %	6.3 %
Hyundai/Kia/Genesis	5.3 %	5.7 %	5.6 %	5.3 %
Subaru	3.2 %	2.8 %	3.3 %	2.7 %
Chrysler/Dodge/Jeep/RAM	1.9 %	3.7 %	2.3 %	4.0 %
Nissan	1.9 %	3.7 %	2.3 %	3.9 %
Jaguar/Land Rover	2.3 %	1.6 %	2.1 %	1.7 %
Mazda	1.2 %	1.2 %	1.2 %	1.2 %
Other	0.2 %	0.4 %	0.2 %	0.4 %
	100.0 %	100.0 %	100.0 %	100.0 %

	September 30, 2024	December 31, 2023	September 30, 2023
DAYS’ SUPPLY IN INVENTORY ⁽¹⁾:
Consolidated
New vehicle inventory	43	37	28
Used vehicle inventory	38	35	34
U.S.
New vehicle inventory	56	36	30
Used vehicle inventory	30	29	29
U.K.
New vehicle inventory	23	48	22
Used vehicle inventory	54	58	48
⁽¹⁾ Days’ supply in inventory is calculated based on inventory unit levels and 30-day total unit sales volumes, both at the end of each reporting period.

Group 1 Automotive, Inc.
Reported Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 2,567.6	$ 2,264.5	$ 303.0	13.4 %	$ 19.9	12.5 %
Used vehicle retail sales	1,656.5	1,559.6	96.9	6.2 %	14.2	5.3 %
Used vehicle wholesale sales	123.2	114.7	8.5	7.4 %	1.1	6.4 %
Total used	1,779.7	1,674.3	105.4	6.3 %	15.4	5.4 %
Parts and service sales	660.0	566.9	93.1	16.4 %	3.7	15.8 %
F&I, net	214.1	199.4	14.7	7.4 %	0.9	6.9 %
Total revenues	$ 5,221.4	$ 4,705.1	$ 516.3	11.0 %	$ 39.8	10.1 %
Gross profit:
New vehicle retail sales	$ 183.2	$ 194.3	$ (11.1)	(5.7) %	$ 1.7	(6.6) %
Used vehicle retail sales	88.0	81.4	6.6	8.2 %	0.7	7.3 %
Used vehicle wholesale sales	0.4	(2.3)	2.7	117.2 %	—	118.0 %
Total used	88.4	79.0	9.4	11.9 %	0.7	11.0 %
Parts and service sales	367.0	313.5	53.4	17.0 %	2.2	16.3 %
F&I, net	214.1	199.4	14.7	7.4 %	0.9	6.9 %
Total gross profit	$ 852.7	$ 786.2	$ 66.4	8.4 %	$ 5.6	7.7 %
Gross margin:
New vehicle retail sales	7.1 %	8.6 %	(1.4) %
Used vehicle retail sales	5.3 %	5.2 %	0.1 %
Used vehicle wholesale sales	0.3 %	(2.0) %	2.4 %
Total used	5.0 %	4.7 %	0.2 %
Parts and service sales	55.6 %	55.3 %	0.3 %
Total gross margin	16.3 %	16.7 %	(0.4) %
Units sold:
Retail new vehicles sold ⁽¹⁾	53,775	45,350	8,425	18.6 %
Retail used vehicles sold	55,907	50,799	5,108	10.1 %
Wholesale used vehicles sold	14,220	11,740	2,480	21.1 %
Total used	70,127	62,539	7,588	12.1 %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 48,390	$ 50,300	$ (1,910)	(3.8) %	$ 372	(4.5) %
Used vehicle retail	$ 29,630	$ 30,701	$ (1,071)	(3.5) %	$ 254	(4.3) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,407	$ 4,285	$ (878)	(20.5) %	$ 32	(21.2) %
Used vehicle retail sales	$ 1,574	$ 1,602	$ (28)	(1.7) %	$ 13	(2.5) %
Used vehicle wholesale sales	$ 28	$ (199)	$ 227	114.2 %	$ (1)	114.9 %
Total used	$ 1,261	$ 1,264	$ (3)	(0.3) %	$ 10	(1.0) %
F&I PRU	$ 1,952	$ 2,073	$ (121)	(5.9) %	$ 9	(6.3) %
Other:
SG&A expenses	$ 591.6	$ 496.7	$ 94.9	19.1 %	$ 4.3	18.2 %
Adjusted SG&A expenses ⁽²⁾	$ 575.9	$ 498.8	$ 77.1	15.5 %	$ 4.1	14.6 %
SG&A as % gross profit	69.4 %	63.2 %	6.2 %
Adjusted SG&A as % gross profit ⁽²⁾	67.5 %	63.4 %	4.1 %
Operating margin %	4.4 %	5.6 %	(1.1) %
Adjusted operating margin % ⁽²⁾	4.8 %	5.6 %	(0.9) %
Pretax margin %	3.1 %	4.7 %	(1.6) %
Adjusted pretax margin % ⁽²⁾	3.4 %	4.8 %	(1.4) %
Floorplan expense:
Floorplan interest expense	$ 31.1	$ 16.5	$ 14.6	88.7 %	$ 0.2	87.6 %
Less: Floorplan assistance⁽³⁾	24.1	18.8	5.3	28.2 %	—	28.1 %
Net floorplan expense	$ 7.0	$ (2.3)	$ 9.3		$ 0.2

⁽¹⁾Retail new vehicle units sold include new vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new vehicles due to their net presentation within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold.

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

⁽³⁾ Floorplan assistance is included within New vehicle retail Gross profit above and New vehicle retail Cost of sales in our Condensed Consolidated Statements of Operations.

Group 1 Automotive, Inc.
Reported Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 7,114.3	$ 6,463.4	$ 650.9	10.1 %	$ 41.2	9.4 %
Used vehicle retail sales	4,526.5	4,359.0	167.4	3.8 %	32.7	3.1 %
Used vehicle wholesale sales	333.5	339.2	(5.6)	(1.7) %	2.6	(2.4) %
Total used	4,860.0	4,698.2	161.8	3.4 %	35.3	2.7 %
Parts and service sales	1,810.8	1,677.3	133.5	8.0 %	8.7	7.4 %
F&I, net	603.1	554.8	48.3	8.7 %	2.0	8.4 %
Total revenues	$ 14,388.3	$ 13,393.7	$ 994.6	7.4 %	$ 87.0	6.8 %
Gross profit:
New vehicle retail sales	$ 512.8	$ 582.5	$ (69.8)	(12.0) %	$ 3.3	(12.5) %
Used vehicle retail sales	250.8	236.9	13.9	5.9 %	1.7	5.1 %
Used vehicle wholesale sales	(1.6)	0.5	(2.2)	NM	—	NM
Total used	249.1	237.4	11.7	4.9 %	1.7	4.2 %
Parts and service sales	996.8	915.0	81.9	8.9 %	5.0	8.4 %
F&I, net	603.1	554.8	48.3	8.7 %	2.0	8.4 %
Total gross profit	$ 2,361.8	$ 2,289.7	$ 72.2	3.2 %	$ 12.0	2.6 %
Gross margin:
New vehicle retail sales	7.2 %	9.0 %	(1.8) %
Used vehicle retail sales	5.5 %	5.4 %	0.1 %
Used vehicle wholesale sales	(0.5) %	0.2 %	(0.6) %
Total used	5.1 %	5.1 %	0.1 %
Parts and service sales	55.0 %	54.6 %	0.5 %
Total gross margin	16.4 %	17.1 %	(0.7) %
Units sold:
Retail new vehicles sold ⁽¹⁾	145,738	129,739	15,999	12.3 %
Retail used vehicles sold	154,350	143,000	11,350	7.9 %
Wholesale used vehicles sold	37,867	32,607	5,260	16.1 %
Total used	192,217	175,607	16,610	9.5 %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 49,318	$ 50,172	$ (854)	(1.7) %	$ 285	(2.3) %
Used vehicle retail	$ 29,326	$ 30,483	$ (1,157)	(3.8) %	$ 212	(4.5) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,518	$ 4,490	$ (972)	(21.6) %	$ 23	(22.1) %
Used vehicle retail sales	$ 1,625	$ 1,657	$ (32)	(1.9) %	$ 11	(2.6) %
Used vehicle wholesale sales	$ (43)	$ 16	$ (59)	NM	$ (1)	NM
Total used	$ 1,296	$ 1,352	$ (56)	(4.1) %	$ 9	(4.8) %
F&I PRU	$ 2,010	$ 2,034	$ (24)	(1.2) %	$ 7	(1.5) %
Other:
SG&A expenses	$ 1,564.9	$ 1,439.4	$ 125.5	8.7 %	$ 9.3	8.1 %
Adjusted SG&A expenses ⁽²⁾	$ 1,584.2	$ 1,452.7	$ 131.6	9.1 %	$ 9.0	8.4 %
SG&A as % gross profit	66.3 %	62.9 %	3.4 %
Adjusted SG&A as % gross profit ⁽²⁾	67.1 %	63.4 %	3.6 %
Operating margin %	5.0 %	5.8 %	(0.8) %
Adjusted operating margin % ⁽²⁾	4.9 %	5.7 %	(0.9) %
Pretax margin %	3.7 %	4.9 %	(1.2) %
Adjusted pretax margin % ⁽²⁾	3.6 %	4.8 %	(1.2) %
Floorplan expense:
Floorplan interest expense	$ 76.3	$ 44.7	$ 31.6	70.6 %	$ 0.4	69.8 %
Less: Floorplan assistance ⁽³⁾	63.4	51.9	11.6	22.3 %	—	22.2 %
Net floorplan expense	$ 12.9	$ (7.1)	$ 20.0		$ 0.3

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

⁽³⁾ Floorplan assistance is included within New vehicle retail Gross profit above and New vehicle retail Cost of sales in our Condensed Consolidated Statements of Operations.

NM – not meaningful

Group 1 Automotive, Inc.
Reported Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change
Revenues:
New vehicle retail sales	$ 2,016.8	$ 1,920.2	$ 96.6	5.0 %
Used vehicle retail sales	1,158.4	1,223.5	(65.2)	(5.3) %
Used vehicle wholesale sales	82.9	80.1	2.8	3.5 %
Total used	1,241.2	1,303.6	(62.4)	(4.8) %
Parts and service sales	528.4	494.4	34.0	6.9 %
F&I, net	184.6	181.5	3.2	1.8 %
Total revenues	$ 3,971.1	$ 3,899.7	$ 71.5	1.8 %
Gross profit:
New vehicle retail sales	$ 140.2	$ 164.9	$ (24.7)	(15.0) %
Used vehicle retail sales	61.2	65.7	(4.5)	(6.8) %
Used vehicle wholesale sales	1.3	(0.4)	1.7	NM
Total used	62.5	65.3	(2.8)	(4.3) %
Parts and service sales	290.8	271.0	19.7	7.3 %
F&I, net	184.6	181.5	3.2	1.8 %
Total gross profit	$ 678.1	$ 682.7	$ (4.6)	(0.7) %
Gross margin:
New vehicle retail sales	7.0 %	8.6 %	(1.6) %
Used vehicle retail sales	5.3 %	5.4 %	(0.1) %
Used vehicle wholesale sales	1.5 %	(0.5) %	2.1 %
Total used	5.0 %	5.0 %	— %
Parts and service sales	55.0 %	54.8 %	0.2 %
Total gross margin	17.1 %	17.5 %	(0.4) %
Units sold:
Retail new vehicles sold	39,700	37,079	2,621	7.1 %
Retail used vehicles sold	38,775	39,676	(901)	(2.3) %
Wholesale used vehicles sold	9,577	8,380	1,197	14.3 %
Total used	48,352	48,056	296	0.6 %
Average sales price per unit sold:
New vehicle retail	$ 50,801	$ 51,786	$ (985)	(1.9) %
Used vehicle retail	$ 29,874	$ 30,838	$ (964)	(3.1) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,532	$ 4,449	$ (917)	(20.6) %
Used vehicle retail sales	$ 1,579	$ 1,656	$ (77)	(4.7) %
Used vehicle wholesale sales	$ 133	$ (51)	$ 184	NM
Total used	$ 1,293	$ 1,359	$ (66)	(4.9) %
F&I PRU	$ 2,353	$ 2,364	$ (11)	(0.5) %
Other:
SG&A expenses	$ 445.4	$ 417.4	$ 28.0	6.7 %
Adjusted SG&A expenses ⁽¹⁾	$ 436.2	$ 419.5	$ 16.7	4.0 %
SG&A as % gross profit	65.7 %	61.1 %	4.5 %
Adjusted SG&A as % gross profit ⁽¹⁾	64.3 %	61.4 %	2.9 %

⁽¹⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

NM — Not Meaningful

Group 1 Automotive, Inc.
Reported Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change
Revenues:
New vehicle retail sales	$ 5,826.2	$ 5,444.3	$ 381.9	7.0 %
Used vehicle retail sales	3,409.7	3,393.5	16.3	0.5 %
Used vehicle wholesale sales	241.2	242.2	(1.0)	(0.4) %
Total used	3,650.9	3,635.7	15.2	0.4 %
Parts and service sales	1,521.0	1,459.4	61.6	4.2 %
F&I, net	539.9	502.3	37.6	7.5 %
Total revenues	$ 11,538.0	$ 11,041.7	$ 496.4	4.5 %
Gross profit:
New vehicle retail sales	$ 416.4	$ 489.7	$ (73.4)	(15.0) %
Used vehicle retail sales	193.7	187.5	6.2	3.3 %
Used vehicle wholesale sales	3.9	3.0	0.9	30.8 %
Total used	197.6	190.5	7.1	3.7 %
Parts and service sales	831.1	787.4	43.7	5.5 %
F&I, net	539.9	502.3	37.6	7.5 %
Total gross profit	$ 1,985.0	$ 1,970.0	$ 15.0	0.8 %
Gross margin:
New vehicle retail sales	7.1 %	9.0 %	(1.8) %
Used vehicle retail sales	5.7 %	5.5 %	0.2 %
Used vehicle wholesale sales	1.6 %	1.2 %	0.4 %
Total used	5.4 %	5.2 %	0.2 %
Parts and service sales	54.6 %	54.0 %	0.7 %
Total gross margin	17.2 %	17.8 %	(0.6) %
Units sold:
Retail new vehicles sold	114,314	104,657	9,657	9.2 %
Retail used vehicles sold	115,271	110,422	4,849	4.4 %
Wholesale used vehicles sold	27,629	23,296	4,333	18.6 %
Total used	142,900	133,718	9,182	6.9 %
Average sales price per unit sold:
New vehicle retail	$ 50,967	$ 52,020	$ (1,053)	(2.0) %
Used vehicle retail	$ 29,580	$ 30,732	$ (1,152)	(3.7) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,642	$ 4,679	$ (1,037)	(22.2) %
Used vehicle retail sales	$ 1,680	$ 1,698	$ (18)	(1.1) %
Used vehicle wholesale sales	$ 143	$ 130	$ 13	10.3 %
Total used	$ 1,383	$ 1,425	$ (42)	(2.9) %
F&I PRU	$ 2,352	$ 2,335	$ 16	0.7 %
Other:
SG&A expenses	$ 1,257.9	$ 1,209.8	$ 48.1	4.0 %
Adjusted SG&A expenses ⁽¹⁾	$ 1,286.2	$ 1,222.1	$ 64.1	5.2 %
SG&A as % gross profit	63.4 %	61.4 %	2.0 %
Adjusted SG&A as % gross profit ⁽¹⁾	64.8 %	62.0 %	2.8 %

⁽¹⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

Group 1 Automotive, Inc.
Reported Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 550.7	$ 344.4	$ 206.4	59.9 %	$ 19.9	54.2 %
Used vehicle retail sales	498.2	336.1	162.1	48.2 %	14.2	44.0 %
Used vehicle wholesale sales	40.3	34.6	5.7	16.4 %	1.1	13.1 %
Total used	538.5	370.7	167.8	45.3 %	15.4	41.1 %
Parts and service sales	131.6	72.5	59.1	81.4 %	3.7	76.3 %
F&I, net	29.4	17.9	11.6	64.6 %	0.9	59.3 %
Total revenues	$ 1,250.3	$ 805.5	$ 444.8	55.2 %	$ 39.8	50.3 %
Gross profit:
New vehicle retail sales	$ 43.0	$ 29.4	$ 13.6	46.4 %	$ 1.7	40.6 %
Used vehicle retail sales	26.8	15.7	11.1	71.0 %	0.7	66.4 %
Used vehicle wholesale sales	(0.9)	(1.9)	1.0	54.3 %	—	55.2 %
Total used	25.9	13.8	12.2	88.3 %	0.7	83.2 %
Parts and service sales	76.2	42.5	33.7	79.3 %	2.2	74.0 %
F&I, net	29.4	17.9	11.6	64.6 %	0.9	59.3 %
Total gross profit	$ 174.5	$ 103.5	$ 71.0	68.6 %	$ 5.6	63.2 %
Gross margin:
New vehicle retail sales	7.8 %	8.5 %	(0.7) %
Used vehicle retail sales	5.4 %	4.7 %	0.7 %
Used vehicle wholesale sales	(2.2) %	(5.5) %	3.3 %
Total used	4.8 %	3.7 %	1.1 %
Parts and service sales	57.9 %	58.6 %	(0.7) %
Total gross margin	14.0 %	12.9 %	1.1 %
Units sold:
Retail new vehicles sold ⁽¹⁾	14,075	8,271	5,804	70.2 %
Retail used vehicles sold	17,132	11,123	6,009	54.0 %
Wholesale used vehicles sold	4,643	3,360	1,283	38.2 %
Total used	21,775	14,483	7,292	50.3 %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 41,188	$ 43,342	$ (2,154)	(5.0) %	$ 1,485	(8.4) %
Used vehicle retail	$ 29,078	$ 30,213	$ (1,135)	(3.8) %	$ 829	(6.5) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,055	$ 3,551	$ (497)	(14.0) %	$ 121	(17.4) %
Used vehicle retail sales	$ 1,563	$ 1,408	$ 155	11.0 %	$ 42	8.0 %
Used vehicle wholesale sales	$ (187)	$ (566)	$ 379	66.9 %	$ (4)	67.6 %
Total used	$ 1,190	$ 950	$ 240	25.3 %	$ 32	21.8 %
F&I PRU	$ 944	$ 922	$ 21	2.3 %	$ 30	(1.0) %
Other:
SG&A expenses	$ 146.1	$ 79.3	$ 66.9	84.4 %	$ 4.3	79.0 %
Adjusted SG&A expenses ⁽²⁾	$ 139.6	$ 79.3	$ 60.4	76.2 %	$ 4.1	71.0 %
SG&A as % gross profit	83.7 %	76.6 %	7.1 %
Adjusted SG&A as % gross profit ⁽²⁾	80.0 %	76.6 %	3.4 %

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

Group 1 Automotive, Inc.
Reported Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 1,288.2	$ 1,019.1	$ 269.0	26.4 %	$ 41.2	22.4 %
Used vehicle retail sales	1,116.7	965.6	151.2	15.7 %	32.7	12.3 %
Used vehicle wholesale sales	92.3	96.9	(4.6)	(4.8) %	2.6	(7.4) %
Total used	1,209.1	1,062.5	146.6	13.8 %	35.3	10.5 %
Parts and service sales	289.8	217.9	71.9	33.0 %	8.7	29.0 %
F&I, net	63.2	52.5	10.7	20.5 %	2.0	16.7 %
Total revenues	$ 2,850.2	$ 2,352.0	$ 498.2	21.2 %	$ 87.0	17.5 %
Gross profit:
New vehicle retail sales	$ 96.4	$ 92.8	$ 3.6	3.9 %	$ 3.3	0.3 %
Used vehicle retail sales	57.1	49.4	7.7	15.6 %	1.7	12.1 %
Used vehicle wholesale sales	(5.6)	(2.5)	(3.1)	(124.2) %	—	(122.4) %
Total used	51.5	46.9	4.6	9.8 %	1.7	6.2 %
Parts and service sales	165.7	127.5	38.2	30.0 %	5.0	26.0 %
F&I, net	63.2	52.5	10.7	20.5 %	2.0	16.7 %
Total gross profit	$ 376.8	$ 319.7	$ 57.2	17.9 %	$ 12.0	14.1 %
Gross margin:
New vehicle retail sales	7.5 %	9.1 %	(1.6) %
Used vehicle retail sales	5.1 %	5.1 %	— %
Used vehicle wholesale sales	(6.0) %	(2.6) %	(3.5) %
Total used	4.3 %	4.4 %	(0.2) %
Parts and service sales	57.2 %	58.5 %	(1.3) %
Total gross margin	13.2 %	13.6 %	(0.4) %
Units sold:
Retail new vehicles sold ⁽¹⁾	31,424	25,082	6,342	25.3 %
Retail used vehicles sold	39,079	32,578	6,501	20.0 %
Wholesale used vehicles sold	10,238	9,311	927	10.0 %
Total used	49,317	41,889	7,428	17.7 %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 43,001	$ 42,149	$ 852	2.0 %	$ 1,375	(1.2) %
Used vehicle retail	$ 28,577	$ 29,639	$ (1,062)	(3.6) %	$ 837	(6.4) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,067	$ 3,699	$ (632)	(17.1) %	$ 106	(19.9) %
Used vehicle retail sales	$ 1,461	$ 1,516	$ (55)	(3.7) %	$ 44	(6.6) %
Used vehicle wholesale sales	$ (545)	$ (267)	$ (278)	(103.9) %	$ (4)	(102.2) %
Total used	$ 1,044	$ 1,120	$ (75)	(6.7) %	$ 34	(9.8) %
F&I PRU	$ 897	$ 910	$ (13)	(1.5) %	$ 28	(4.6) %
Other:
SG&A expenses	$ 307.0	$ 229.6	$ 77.4	33.7 %	$ 9.3	29.7 %
Adjusted SG&A expenses ⁽²⁾	$ 298.0	$ 230.5	$ 67.5	29.3 %	$ 9.0	25.4 %
SG&A as % gross profit	81.5 %	71.8 %	9.6 %
Adjusted SG&A as % gross profit ⁽²⁾	79.1 %	72.1 %	7.0 %

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

Group 1 Automotive, Inc.
Same Store Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 2,209.3	$ 2,208.6	$ 0.7	— %	$ 12.0	(0.5) %
Used vehicle retail sales	1,411.1	1,514.0	(102.8)	(6.8) %	8.3	(7.3) %
Used vehicle wholesale sales	100.6	110.5	(9.9)	(8.9) %	0.7	(9.5) %
Total used	1,511.8	1,624.5	(112.7)	(6.9) %	9.0	(7.5) %
Parts and service sales	578.8	549.7	29.1	5.3 %	2.1	4.9 %
F&I, net	192.6	193.8	(1.1)	(0.6) %	0.5	(0.9) %
Total revenues	$ 4,492.5	$ 4,576.5	$ (84.0)	(1.8) %	$ 23.5	(2.4) %
Gross profit:
New vehicle retail sales	$ 153.2	$ 189.4	$ (36.2)	(19.1) %	$ 0.9	(19.6) %
Used vehicle retail sales	72.9	79.6	(6.7)	(8.4) %	0.4	(8.9) %
Used vehicle wholesale sales	—	(2.2)	2.3	102.0 %	—	103.2 %
Total used	72.9	77.3	(4.4)	(5.7) %	0.3	(6.1) %
Parts and service sales	318.8	303.9	14.9	4.9 %	1.3	4.5 %
F&I, net	192.6	193.8	(1.1)	(0.6) %	0.5	(0.9) %
Total gross profit	$ 737.5	$ 764.4	$ (26.8)	(3.5) %	$ 3.1	(3.9) %
Gross margin:
New vehicle retail sales	6.9 %	8.6 %	(1.6) %
Used vehicle retail sales	5.2 %	5.3 %	(0.1) %
Used vehicle wholesale sales	— %	(2.0) %	2.1 %
Total used	4.8 %	4.8 %	0.1 %
Parts and service sales	55.1 %	55.3 %	(0.2) %
Total gross margin	16.4 %	16.7 %	(0.3) %
Units sold:
Retail new vehicles sold ⁽¹⁾	44,411	44,185	226	0.5 %
Retail used vehicles sold	47,635	49,252	(1,617)	(3.3) %
Wholesale used vehicles sold	11,682	11,349	333	2.9 %
Total used	59,317	60,601	(1,284)	(2.1) %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 50,295	$ 50,360	$ (66)	(0.1) %	$ 272	(0.7) %
Used vehicle retail	$ 29,624	$ 30,739	$ (1,115)	(3.6) %	$ 174	(4.2) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,449	$ 4,287	$ (837)	(19.5) %	$ 21	(20.0) %
Used vehicle retail sales	$ 1,530	$ 1,615	$ (85)	(5.3) %	$ 8	(5.8) %
Used vehicle wholesale sales	$ 4	$ (196)	$ 200	101.9 %	$ (2)	103.1 %
Total used	$ 1,229	$ 1,276	$ (47)	(3.7) %	$ 6	(4.1) %
F&I PRU	$ 2,093	$ 2,074	$ 19	0.9 %	$ 6	0.6 %
Other:
SG&A expenses	$ 504.3	$ 487.8	$ 16.5	3.4 %	$ 2.4	2.9 %
Adjusted SG&A expenses ⁽²⁾	$ 488.1	$ 481.9	$ 6.2	1.3 %	$ 2.2	0.8 %
SG&A as % gross profit	68.4 %	63.8 %	4.6 %
Adjusted SG&A as % gross profit ⁽²⁾	66.2 %	63.0 %	3.1 %
Operating margin %	4.6 %	5.5 %	(0.8) %
Adjusted operating margin % ⁽²⁾	5.0 %	5.7 %	(0.7) %

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures

Group 1 Automotive, Inc.
Same Store Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 6,344.2	$ 6,251.4	$ 92.8	1.5 %	$ 30.6	1.0 %
Used vehicle retail sales	4,112.2	4,200.1	(87.9)	(2.1) %	23.7	(2.7) %
Used vehicle wholesale sales	297.5	323.3	(25.8)	(8.0) %	1.9	(8.6) %
Total used	4,409.6	4,523.4	(113.7)	(2.5) %	25.5	(3.1) %
Parts and service sales	1,665.8	1,613.5	52.4	3.2 %	6.1	2.9 %
F&I, net	551.3	534.6	16.7	3.1 %	1.4	2.9 %
Total revenues	$ 12,971.0	$ 12,922.9	$ 48.2	0.4 %	$ 63.5	(0.1) %
Gross profit:
New vehicle retail sales	$ 452.3	$ 564.9	$ (112.6)	(19.9) %	$ 2.3	(20.3) %
Used vehicle retail sales	225.6	229.2	(3.6)	(1.6) %	1.1	(2.1) %
Used vehicle wholesale sales	(2.4)	0.7	(3.1)	NM	(0.1)	NM
Total used	223.2	229.9	(6.7)	(2.9) %	1.1	(3.4) %
Parts and service sales	909.4	879.3	30.0	3.4 %	3.5	3.0 %
F&I, net	551.3	534.6	16.7	3.1 %	1.4	2.9 %
Total gross profit	$ 2,136.2	$ 2,208.7	$ (72.5)	(3.3) %	$ 8.3	(3.7) %
Gross margin:
New vehicle retail sales	7.1 %	9.0 %	(1.9) %
Used vehicle retail sales	5.5 %	5.5 %	— %
Used vehicle wholesale sales	(0.8) %	0.2 %	(1.0) %
Total used	5.1 %	5.1 %	— %
Parts and service sales	54.6 %	54.5 %	0.1 %
Total gross margin	16.5 %	17.1 %	(0.6) %
Units sold:
Retail new vehicles sold ⁽¹⁾	128,043	125,426	2,617	2.1 %
Retail used vehicles sold	140,568	137,539	3,029	2.2 %
Wholesale used vehicles sold	33,668	31,281	2,387	7.6 %
Total used	174,236	168,820	5,416	3.2 %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 50,037	$ 50,207	$ (170)	(0.3) %	$ 241	(0.8) %
Used vehicle retail	$ 29,254	$ 30,537	$ (1,283)	(4.2) %	$ 169	(4.8) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,533	$ 4,504	$ (971)	(21.6) %	$ 18	(22.0) %
Used vehicle retail sales	$ 1,605	$ 1,667	$ (62)	(3.7) %	$ 8	(4.2) %
Used vehicle wholesale sales	$ (71)	$ 21	$ (93)	NM	$ (2)	NM
Total used	$ 1,281	$ 1,362	$ (81)	(5.9) %	$ 6	(6.4) %
F&I PRU	$ 2,052	$ 2,033	$ 19	1.0 %	$ 5	0.7 %
Other:
SG&A expenses	$ 1,461.2	$ 1,398.6	$ 62.6	4.5 %	$ 6.4	4.0 %
Adjusted SG&A expenses⁽²⁾	$ 1,427.5	$ 1,392.4	$ 35.1	2.5 %	$ 6.0	2.1 %
SG&A as % gross profit	68.4 %	63.3 %	5.1 %
Adjusted SG&A as % gross profit ⁽²⁾	66.8 %	63.0 %	3.8 %
Operating margin %	4.6 %	5.7 %	(1.1) %
Adjusted operating margin % ⁽²⁾	4.9 %	5.8 %	(0.9) %

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

NM – not meaningful

Group 1 Automotive, Inc.
Same Store Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change
Revenues:
New vehicle retail sales	$ 1,854.5	$ 1,864.2	$ (9.8)	(0.5) %
Used vehicle retail sales	1,099.1	1,177.9	(78.8)	(6.7) %
Used vehicle wholesale sales	76.0	75.9	0.1	0.1 %
Total used	1,175.1	1,253.8	(78.7)	(6.3) %
Parts and service sales	498.9	479.9	19.0	4.0 %
F&I, net	174.7	175.9	(1.2)	(0.7) %
Total revenues	$ 3,703.2	$ 3,773.8	$ (70.6)	(1.9) %
Gross profit:
New vehicle retail sales	$ 128.4	$ 160.0	$ (31.6)	(19.8) %
Used vehicle retail sales	58.3	63.9	(5.6)	(8.8) %
Used vehicle wholesale sales	1.2	(0.3)	1.6	NM
Total used	59.5	63.6	(4.1)	(6.4) %
Parts and service sales	272.8	262.7	10.2	3.9 %
F&I, net	174.7	175.9	(1.2)	(0.7) %
Total gross profit	$ 635.5	$ 662.1	$ (26.7)	(4.0) %
Gross margin:
New vehicle retail sales	6.9 %	8.6 %	(1.7) %
Used vehicle retail sales	5.3 %	5.4 %	(0.1) %
Used vehicle wholesale sales	1.6 %	(0.4) %	2.0 %
Total used	5.1 %	5.1 %	— %
Parts and service sales	54.7 %	54.7 %	— %
Total gross margin	17.2 %	17.5 %	(0.4) %
Units sold:
Retail new vehicles sold	36,031	35,914	117	0.3 %
Retail used vehicles sold	36,597	38,129	(1,532)	(4.0) %
Wholesale used vehicles sold	8,753	7,989	764	9.6 %
Total used	45,350	46,118	(768)	(1.7) %
Average sales price per unit sold:
New vehicle retail	$ 51,468	$ 51,908	$ (440)	(0.8) %
Used vehicle retail	$ 30,033	$ 30,893	$ (860)	(2.8) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,563	$ 4,456	$ (893)	(20.0) %
Used vehicle retail sales	$ 1,593	$ 1,676	$ (83)	(5.0) %
Used vehicle wholesale sales	$ 141	$ (41)	$ 181	NM
Total used	$ 1,312	$ 1,378	$ (66)	(4.8) %
F&I PRU	$ 2,406	$ 2,375	$ 30	1.3 %
Other:
SG&A expenses	$ 417.9	$ 409.8	$ 8.1	2.0 %
Adjusted SG&A expenses ⁽¹⁾	$ 408.1	$ 403.9	$ 4.2	1.0 %
SG&A as % gross profit	65.8 %	61.9 %	3.9 %
Adjusted SG&A as % gross profit ⁽¹⁾	64.2 %	61.0 %	3.2 %

⁽¹⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

NM — Not Meaningful

Group 1 Automotive, Inc.
Same Store Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change
Revenues:
New vehicle retail sales	$ 5,252.0	$ 5,232.3	$ 19.7	0.4 %
Used vehicle retail sales	3,181.6	3,234.5	(52.9)	(1.6) %
Used vehicle wholesale sales	220.8	226.3	(5.6)	(2.5) %
Total used	3,402.4	3,460.9	(58.5)	(1.7) %
Parts and service sales	1,433.6	1,404.1	29.5	2.1 %
F&I, net	499.6	482.1	17.5	3.6 %
Total revenues	$ 10,587.6	$ 10,579.3	$ 8.2	0.1 %
Gross profit:
New vehicle retail sales	$ 374.1	$ 472.1	$ (98.0)	(20.8) %
Used vehicle retail sales	180.7	179.8	0.9	0.5 %
Used vehicle wholesale sales	3.5	3.2	0.3	10.8 %
Total used	184.2	183.0	1.2	0.7 %
Parts and service sales	776.5	755.7	20.8	2.8 %
F&I, net	499.6	482.1	17.5	3.6 %
Total gross profit	$ 1,834.5	$ 1,892.9	$ (58.4)	(3.1) %
Gross margin:
New vehicle retail sales	7.1 %	9.0 %	(1.9) %
Used vehicle retail sales	5.7 %	5.6 %	0.1 %
Used vehicle wholesale sales	1.6 %	1.4 %	0.2 %
Total used	5.4 %	5.3 %	0.1 %
Parts and service sales	54.2 %	53.8 %	0.3 %
Total gross margin	17.3 %	17.9 %	(0.6) %
Units sold:
Retail new vehicles sold	102,314	100,344	1,970	2.0 %
Retail used vehicles sold	107,583	104,961	2,622	2.5 %
Wholesale used vehicles sold	25,144	21,970	3,174	14.4 %
Total used	132,727	126,931	5,796	4.6 %
Average sales price per unit sold:
New vehicle retail	$ 51,332	$ 52,143	$ (811)	(1.6) %
Used vehicle retail	$ 29,573	$ 30,816	$ (1,243)	(4.0) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,657	$ 4,705	$ (1,048)	(22.3) %
Used vehicle retail sales	$ 1,680	$ 1,713	$ (34)	(2.0) %
Used vehicle wholesale sales	$ 139	$ 144	$ (5)	(3.2) %
Total used	$ 1,388	$ 1,442	$ (54)	(3.7) %
F&I PRU	$ 2,380	$ 2,348	$ 32	1.4 %
Other:
SG&A expenses	$ 1,216.7	$ 1,171.9	$ 44.9	3.8 %
Adjusted SG&A expenses ⁽¹⁾	$ 1,192.1	$ 1,165.7	$ 26.4	2.3 %
SG&A as % gross profit	66.3 %	61.9 %	4.4 %
Adjusted SG&A as % gross profit ⁽¹⁾	65.0 %	61.6 %	3.4 %

⁽¹⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

Group 1 Automotive, Inc.
Same Store Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 354.9	$ 344.4	$ 10.5	3.0 %	$ 12.0	(0.4) %
Used vehicle retail sales	312.0	336.1	(24.0)	(7.2) %	8.3	(9.6) %
Used vehicle wholesale sales	24.7	34.6	(10.0)	(28.8) %	0.7	(30.7) %
Total used	336.7	370.7	(34.0)	(9.2) %	9.0	(11.6) %
Parts and service sales	79.9	69.8	10.1	14.4 %	2.1	11.4 %
F&I, net	17.9	17.9	—	0.1 %	0.5	(2.9) %
Total revenues	$ 789.3	$ 802.7	$ (13.4)	(1.7) %	$ 23.5	(4.6) %
Gross profit:
New vehicle retail sales	$ 24.8	$ 29.4	$ (4.6)	(15.5) %	$ 0.9	(18.8) %
Used vehicle retail sales	14.6	15.7	(1.1)	(6.9) %	0.4	(9.2) %
Used vehicle wholesale sales	(1.2)	(1.9)	0.7	37.7 %	—	39.0 %
Total used	13.4	13.8	(0.4)	(2.6) %	0.3	(5.1) %
Parts and service sales	46.0	41.2	4.8	11.5 %	1.3	8.5 %
F&I, net	17.9	17.9	—	0.1 %	0.5	(2.9) %
Total gross profit	$ 102.1	$ 102.2	$ (0.2)	(0.2) %	$ 3.1	(3.2) %
Gross margin:
New vehicle retail sales	7.0 %	8.5 %	(1.5) %
Used vehicle retail sales	4.7 %	4.7 %	— %
Used vehicle wholesale sales	(4.8) %	(5.5) %	0.7 %
Total used	4.0 %	3.7 %	0.3 %
Parts and service sales	57.6 %	59.1 %	(1.5) %
Total gross margin	12.9 %	12.7 %	0.2 %
Units sold:
Retail new vehicles sold ⁽¹⁾	8,380	8,271	109	1.3 %
Retail used vehicles sold	11,038	11,123	(85)	(0.8) %
Wholesale used vehicles sold	2,929	3,360	(431)	(12.8) %
Total used	13,967	14,483	(516)	(3.6) %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 44,920	$ 43,342	$ 1,578	3.6 %	$ 1,517	0.1 %
Used vehicle retail	$ 28,267	$ 30,213	$ (1,946)	(6.4) %	$ 753	(8.9) %
Gross profit per unit sold:
New vehicle retail sales	$ 2,960	$ 3,551	$ (591)	(16.6) %	$ 113	(19.8) %
Used vehicle retail sales	$ 1,322	$ 1,408	$ (87)	(6.1) %	$ 34	(8.5) %
Used vehicle wholesale sales	$ (405)	$ (566)	$ 161	28.5 %	$ (9)	30.1 %
Total used	$ 960	$ 950	$ 9	1.0 %	$ 25	(1.6) %
F&I PRU	$ 922	$ 922	$ (1)	(0.1) %	$ 28	(3.1) %
Other:
SG&A expenses	$ 86.4	$ 78.0	$ 8.4	10.8 %	$ 2.4	7.8 %
Adjusted SG&A expenses ⁽²⁾	$ 79.9	$ 78.0	$ 2.0	2.5 %	$ 2.2	(0.3) %
SG&A as % gross profit	84.7 %	76.3 %	8.4 %
Adjusted SG&A as % gross profit ⁽²⁾	78.3 %	76.3 %	2.0 %

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

Group 1 Automotive, Inc.
Same Store Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2024	2023	Increase/ (Decrease)	% Change	Currency Impact on Current Period Results	Constant Currency % Change
Revenues:
New vehicle retail sales	$ 1,092.3	$ 1,019.1	$ 73.1	7.2 %	$ 30.6	4.2 %
Used vehicle retail sales	930.6	965.6	(35.0)	(3.6) %	23.7	(6.1) %
Used vehicle wholesale sales	76.7	96.9	(20.3)	(20.9) %	1.9	(22.8) %
Total used	1,007.3	1,062.5	(55.2)	(5.2) %	25.5	(7.6) %
Parts and service sales	232.2	209.4	22.8	10.9 %	6.1	8.0 %
F&I, net	51.7	52.5	(0.8)	(1.5) %	1.4	(4.2) %
Total revenues	$ 2,383.4	$ 2,343.5	$ 39.9	1.7 %	$ 63.5	(1.0) %
Gross profit:
New vehicle retail sales	$ 78.2	$ 92.8	$ (14.6)	(15.7) %	$ 2.3	(18.2) %
Used vehicle retail sales	44.9	49.4	(4.5)	(9.1) %	1.1	(11.4) %
Used vehicle wholesale sales	(5.9)	(2.5)	(3.4)	(136.9) %	(0.1)	(134.7) %
Total used	39.0	46.9	(7.9)	(16.8) %	1.1	(19.2) %
Parts and service sales	132.8	123.6	9.2	7.4 %	3.5	4.6 %
F&I, net	51.7	52.5	(0.8)	(1.5) %	1.4	(4.2) %
Total gross profit	$ 301.7	$ 315.8	$ (14.1)	(4.5) %	$ 8.3	(7.1) %
Gross margin:
New vehicle retail sales	7.2 %	9.1 %	(1.9) %
Used vehicle retail sales	4.8 %	5.1 %	(0.3) %
Used vehicle wholesale sales	(7.7) %	(2.6) %	(5.1) %
Total used	3.9 %	4.4 %	(0.5) %
Parts and service sales	57.2 %	59.0 %	(1.8) %
Total gross margin	12.7 %	13.5 %	(0.8) %
Units sold:
Retail new vehicles sold ⁽¹⁾	25,729	25,082	647	2.6 %
Retail used vehicles sold	32,985	32,578	407	1.2 %
Wholesale used vehicles sold	8,524	9,311	(787)	(8.5) %
Total used	41,509	41,889	(380)	(0.9) %
Average sales price per unit sold:
New vehicle retail ⁽¹⁾	$ 44,608	$ 42,149	$ 2,458	5.8 %	$ 1,251	2.9 %
Used vehicle retail	$ 28,213	$ 29,639	$ (1,426)	(4.8) %	$ 718	(7.2) %
Gross profit per unit sold:
New vehicle retail sales	$ 3,039	$ 3,699	$ (660)	(17.8) %	$ 91	(20.3) %
Used vehicle retail sales	$ 1,361	$ 1,516	$ (155)	(10.2) %	$ 35	(12.5) %
Used vehicle wholesale sales	$ (692)	$ (267)	$ (424)	NM	$ (6)	NM
Total used	$ 940	$ 1,120	$ (180)	(16.1) %	$ 26	(18.4) %
F&I PRU	$ 880	$ 910	$ (30)	(3.3) %	$ 24	(5.9) %
Other:
SG&A expenses	$ 244.4	$ 226.7	$ 17.7	7.8 %	$ 6.4	5.0 %
Adjusted SG&A expenses ⁽²⁾	$ 235.4	$ 226.7	$ 8.7	3.9 %	$ 6.0	1.2 %
SG&A as % gross profit	81.0 %	71.8 %	9.2 %
Adjusted SG&A as % gross profit ⁽²⁾	78.0 %	71.8 %	6.2 %

⁽²⁾ See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.

NM — Not Meaningful

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Three Months Ended September 30, 2024
	U.S. GAAP	Catastrophic events	Dealership and real estate transactions	Severance costs	Acquisition costs	Legal items and other professional fees	Accelerated depreciation	Non-GAAP adjusted
SG&A expenses	$ 591.6	$ (0.7)	$ 0.6	$ (0.4)	$ (14.8)	$ (0.3)	$ —	$ 575.9
Depreciation and amortization expense	$ 29.5	$ —	$ —	$ —	$ —	$ —	$ (1.3)	$ 28.2
Income (loss) from operations	$ 231.6	$ 0.7	$ (0.6)	$ 0.4	$ 14.8	$ 0.3	$ 1.3	$ 248.6

Income (loss) before income taxes	$ 159.6	$ 0.7	$ (0.6)	$ 0.4	$ 14.8	$ 0.3	$ 1.3	$ 176.6
Less: Provision (benefit) for income taxes	42.5	0.2	(0.8)	0.1	0.7	0.1	0.3	43.1
Net income from continuing operations	117.1	0.6	0.2	0.3	14.2	0.2	1.0	133.5
Less: Earnings allocated to participating securities	2.4	—	—	—	0.3	—	—	2.7
Net income from continuing operations available to diluted common shares	$ 114.7	$ 0.5	$ 0.2	$ 0.3	$ 13.9	$ 0.2	$ 1.0	$ 130.8

Diluted earnings per common share from continuing operations	$ 8.68	$ 0.04	$ 0.01	$ 0.02	$ 1.05	$ 0.02	$ 0.07	$ 9.90

Effective tax rate	26.6 %							24.4 %

SG&A as % gross profit ⁽¹⁾	69.4 %							67.5 %
Operating margin ⁽²⁾	4.4 %							4.8 %
Pretax margin ⁽³⁾	3.1 %							3.4 %

Same Store SG&A expenses	$ 504.3	$ (0.7)	$ —	$ (0.4)	$ (14.8)	$ (0.3)	$ —	$ 488.1
Same Store SG&A as % gross profit ⁽¹⁾	68.4 %							66.2 %

Same Store income from operations	$ 208.1	$ 0.7	$ —	$ 0.4	$ 14.8	$ 0.3	$ 1.3	$ 225.7
Same Store operating margin ⁽²⁾	4.6 %							5.0 %

	U.S. GAAP	Non-GAAP adjustments	Non-GAAP adjusted
Net income from discontinued operations	$ 0.2	$ —	$ 0.2
Less: Earnings allocated to participating securities	—	—	—
Net income from discontinued operations available to diluted common shares	$ 0.2	$ —	$ 0.2

Net income	$ 117.3	$ 16.4	$ 133.7
Less: Earnings allocated to participating securities	2.4	0.3	2.7
Net income available to diluted common shares	$ 114.9	$ 16.1	$ 131.0

Diluted earnings per common share from discontinued operations	$ 0.01	$ —	$ 0.01
Diluted earnings per common share from continuing operations	8.68	1.22	9.90
Diluted earnings per common share	$ 8.69	$ 1.22	$ 9.91

⁽¹⁾ Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.

⁽²⁾ Adjusted operating margin excludes the impact of SG&A reconciling items and accelerated depreciation expense.

⁽³⁾ Adjusted pretax margin excludes the impact of SG&A reconciling items and accelerated depreciation expense.

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Three Months Ended September 30, 2023
	U.S. GAAP	Catastrophic events	Dealership and real estate transactions	Legal items and other professional fees	Asset impairments and accelerated depreciation	Non-GAAP adjusted
SG&A expenses	$ 496.7	$ (1.5)	$ 7.9	$ (4.4)	$ —	$ 498.8
Depreciation and amortization expense	$ 23.1	$ —	$ —	$ —	$ (0.3)	$ 22.8
Asset impairments	$ 4.8	$ —	$ —	$ —	$ (4.8)	$ —
Income (loss) from operations	$ 261.6	$ 1.5	$ (7.9)	$ 4.4	$ 5.2	$ 264.7

Income (loss) before income taxes	$ 220.5	$ 1.5	$ (7.9)	$ 4.4	$ 5.2	$ 223.6
Less: Provision (benefit) for income taxes	56.4	0.4	(5.4)	1.1	1.3	53.8
Net income (loss) from continuing operations	164.1	1.1	(2.6)	3.3	3.9	169.8
Less: Earnings (loss) allocated to participating securities	4.0	—	(0.1)	0.1	0.1	4.2
Net income (loss) from continuing operations available to diluted common shares	$ 160.1	$ 1.1	$ (2.5)	$ 3.2	$ 3.8	$ 165.6

Diluted earnings (loss) per common share from continuing operations	$ 11.67	$ 0.08	$ (0.18)	$ 0.23	$ 0.28	$ 12.07

Effective tax rate	25.6 %					24.0 %

SG&A as % gross profit ⁽¹⁾	63.2 %					63.4 %
Operating margin ⁽²⁾	5.6 %					5.6 %
Pretax margin ⁽³⁾	4.7 %					4.8 %

Same Store SG&A expenses	$ 487.8	$ (1.5)	$ —	$ (4.4)	$ —	$ 481.9
Same Store SG&A as % gross profit⁽¹⁾	63.8 %					63.0 %

Same Store income from operations	$ 249.6	$ 1.5	$ —	$ 4.4	$ 5.2	$ 260.7
Same Store operating margin⁽²⁾	5.5 %					5.7 %

	U.S. GAAP	Non-GAAP adjustments	Non-GAAP adjusted
Net loss from discontinued operations	$ (0.2)	$ —	$ (0.2)
Less: Loss allocated to participating securities	—	—	—
Net loss from discontinued operations available to diluted common shares	$ (0.2)	$ —	$ (0.2)

Net income	$ 163.9	$ 5.7	$ 169.6
Less: Earnings allocated to participating securities	4.0	0.1	4.2
Net income available to diluted common shares	$ 159.9	$ 5.5	$ 165.4

Diluted loss per common share from discontinued operations	$ (0.02)	$ —	$ (0.02)
Diluted earnings per common share from continuing operations	11.67	0.40	12.07
Diluted earnings per common share	$ 11.65	$ 0.40	$ 12.06

⁽¹⁾ Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.

⁽²⁾ Adjusted operating margin excludes the impact of SG&A reconciling items, accelerated depreciation expense and asset impairment charges.

⁽³⁾ Adjusted pretax margin excludes the impact of SG&A reconciling items, accelerated depreciation expense and asset impairment charges.

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Nine Months Ended September 30, 2024
	U.S. GAAP	Catastrophic events	Dealership and real estate transactions	Severance costs	Acquisition costs	Legal items and other professional fees	Accelerated depreciation	Non-GAAP adjusted
SG&A expenses	$ 1,564.9	$ (9.8)	$ 52.9	$ (1.0)	$ (19.3)	$ (3.5)	$ —	$ 1,584.2
Depreciation and amortization expense	$ 81.6	$ —	$ —	$ —	$ —	$ —	$ (5.5)	$ 76.1
Income (loss) from operations	$ 715.4	$ 9.8	$ (52.9)	$ 1.0	$ 19.3	$ 3.5	$ 5.5	$ 701.5

Income (loss) before income taxes	$ 535.8	$ 9.8	$ (52.9)	$ 1.0	$ 19.3	$ 3.5	$ 5.5	$ 522.0
Less: Provision (benefit) for income taxes	133.5	2.4	(14.2)	0.2	1.3	0.9	1.3	125.3
Net income (loss) from continuing operations	402.4	7.5	(38.7)	0.7	18.0	2.7	4.2	396.7
Less: Earnings (loss) allocated to participating securities	8.6	0.2	(0.8)	—	0.4	0.1	0.1	8.5
Net income (loss) from continuing operations available to diluted common shares	$ 393.8	$ 7.3	$ (37.9)	$ 0.7	$ 17.6	$ 2.6	$ 4.1	$ 388.2

Diluted earnings (loss) per common share from continuing operations	$ 29.61	$ 0.55	$ (2.85)	$ 0.05	$ 1.33	$ 0.20	$ 0.31	$ 29.19

Effective tax rate	24.9 %							24.0 %

SG&A as % gross profit ⁽¹⁾	66.3 %							67.1 %
Operating margin ⁽²⁾	5.0 %							4.9 %
Pretax margin ⁽³⁾	3.7 %							3.6 %

Same Store SG&A expenses	$ 1,461.2	$ (9.8)	$ —	$ (1.0)	$ (19.3)	$ (3.5)	$ —	$ 1,427.5
Same Store SG&A as % gross profit ⁽¹⁾	68.4 %							66.8 %

Same Store income from operations	$ 601.0	$ 9.8	$ —	$ 1.0	$ 19.3	$ 3.5	$ 5.5	$ 640.1
Same Store operating margin ⁽²⁾	4.6 %							4.9 %

	U.S. GAAP	Non-GAAP adjustments	Non-GAAP adjusted
Net income from discontinued operations	$ 1.0	$ —	$ 1.0
Less: Earnings allocated to participating securities	—	—	—
Net income from discontinued operations available to diluted common shares	$ 0.9	$ —	$ 0.9

Net income (loss)	$ 403.3	$ (5.7)	$ 397.7
Less: Earnings (loss) allocated to participating securities	8.6	(0.1)	8.5
Net income (loss) available to diluted common shares	$ 394.7	$ (5.5)	$ 389.2

Diluted earnings per common share from discontinued operations	$ 0.07	$ —	$ 0.07
Diluted earnings (loss) per common share from continuing operations	29.61	(0.42)	29.19
Diluted earnings (loss) per common share	$ 29.68	$ (0.42)	$ 29.26

⁽¹⁾ Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.

⁽²⁾ Adjusted operating margin excludes the impact of SG&A reconciling items and accelerated depreciation expense.

⁽³⁾ Adjusted pretax margin excludes the impact of SG&A reconciling items and accelerated depreciation expense.

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Nine Months Ended September 30, 2023
	U.S. GAAP	Non-cash gain on interest rate swaps	Catastrophic events	Dealership and real estate transactions	Acquisition costs	Legal items and other professional fees	Asset impairments and accelerated depreciation	Non-GAAP adjusted
SG&A expenses	$ 1,439.4	$ —	$ (1.5)	$ 19.4	$ (0.3)	$ (4.4)	$ —	$ 1,452.7
Depreciation and amortization expense	$ 68.6	$ —	$ —	$ —	$ —	$ —	$ (0.9)	$ 67.8
Asset impairments	$ 7.7	$ —	$ —	$ —	$ —	$ —	$ (7.7)	$ —
Income (loss) from operations	$ 773.9	$ —	$ 1.5	$ (19.4)	$ 0.3	$ 4.4	$ 8.6	$ 769.2
Other interest expense, net	$ 72.1	$ 4.0	$ —	$ —	$ —	$ —	$ —	$ 76.2

Income (loss) before income taxes	$ 654.8	$ (4.0)	$ 1.5	$ (19.4)	$ 0.3	$ 4.4	$ 8.6	$ 646.1
Less: Provision (benefit) for income taxes	161.6	(0.9)	0.4	(10.3)	0.1	1.1	2.1	154.0
Net income (loss) from continuing operations	493.2	(3.1)	1.1	(9.1)	0.2	3.3	6.5	492.1
Less: Earnings (loss) allocated to participating securities	12.2	(0.1)	—	(0.2)	—	0.1	0.2	12.2
Net income (loss) from continuing operations available to diluted common shares	$ 480.9	$ (3.0)	$ 1.1	$ (8.9)	$ 0.2	$ 3.2	$ 6.3	$ 479.8

Diluted earnings (loss) per common share from continuing operations	$ 34.81	$ (0.22)	$ 0.08	$ (0.64)	$ 0.01	$ 0.23	$ 0.46	$ 34.73

Effective tax rate	24.7 %							23.8 %

SG&A as % gross profit ⁽¹⁾	62.9 %							63.4 %
Operating margin ⁽²⁾	5.8 %							5.7 %
Pretax margin ⁽³⁾	4.9 %							4.8 %

Same Store SG&A expenses	$ 1,398.6	$ —	$ (1.5)	$ —	$ (0.3)	$ (4.4)	$ —	$ 1,392.4
Same Store SG&A as % gross profit ⁽¹⁾	63.3 %							63.0 %

Same Store income from operations	$ 737.6	$ —	$ 1.5	$ —	$ 0.3	$ 4.4	$ 8.6	$ 752.3
Same Store operating margin ⁽²⁾	5.7 %							5.8 %

	U.S. GAAP	Non-GAAP adjustments	Non-GAAP adjusted
Net loss from discontinued operations	$ (0.3)	$ —	$ (0.3)
Less: Loss allocated to participating securities	—	—	—
Net loss from discontinued operations available to diluted common shares	$ (0.3)	$ —	$ (0.3)

Net income (loss)	$ 492.9	$ (1.1)	$ 491.7
Less: Earnings allocated to participating securities	12.2	—	12.2
Net income (loss) available to diluted common shares	$ 480.6	$ (1.1)	$ 479.5

Diluted loss per common share from discontinued operations	$ (0.02)	$ —	$ (0.02)
Diluted earnings (loss) per common share from continuing operations	34.81	(0.08)	34.73
Diluted earnings (loss) per common share	$ 34.79	$ (0.08)	$ 34.71

⁽¹⁾ Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.

⁽²⁾ Adjusted operating margin excludes the impact of SG&A reconciling items, accelerated depreciation expense and asset impairment charges.

⁽³⁾ Adjusted pretax margin excludes the impact of SG&A reconciling items, accelerated depreciation expense, asset impairment charges and a non-cash gain on interest rate swaps.

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — U.S.
(Unaudited)
(In millions)

	Three Months Ended September 30, 2024
	U.S. GAAP	Catastrophic events	Dealership and real estate transactions	Acquisition costs	Legal items and other professional fees	Non-GAAP adjusted
SG&A expenses	$ 445.4	$ (0.7)	$ 0.6	$ (8.7)	$ (0.3)	$ 436.2
SG&A as % gross profit ⁽¹⁾	65.7 %					64.3 %

Same Store SG&A expenses	$ 417.9	$ (0.7)	$ —	$ (8.7)	$ (0.3)	$ 408.1
Same Store SG&A as % gross profit ⁽¹⁾	65.8 %					64.2 %

	Three Months Ended September 30, 2023
	U.S. GAAP	Catastrophic events	Dealership and real estate transactions	Legal items and other professional fees	Non-GAAP adjusted
SG&A expenses	$ 417.4	$ (1.5)	$ 7.9	$ (4.4)	$ 419.5
SG&A as % gross profit⁽¹⁾	61.1 %				61.4 %

Same Store SG&A expenses	$ 409.8	$ (1.5)	$ —	$ (4.4)	$ 403.9
Same Store SG&A as % gross profit ⁽¹⁾	61.9 %				61.0 %

	Nine Months Ended September 30, 2024
	U.S. GAAP	Catastrophic events	Dealership and real estate transactions	Acquisition costs	Legal items and other professional fees	Non-GAAP adjusted
SG&A expenses	$ 1,257.9	$ (9.8)	$ 52.9	$ (11.3)	$ (3.5)	$ 1,286.2
SG&A as % gross profit ⁽¹⁾	63.4 %					64.8 %

Same Store SG&A expenses	$ 1,216.7	$ (9.8)	$ —	$ (11.3)	$ (3.5)	$ 1,192.1
Same Store SG&A as % gross profit ⁽¹⁾	66.3 %					65.0 %

	Nine Months Ended September 30, 2023
	U.S. GAAP	Catastrophic events	Dealership and real estate transactions	Acquisition costs	Legal items and other professional fees	Non-GAAP adjusted
SG&A expenses	$ 1,209.8	$ (1.5)	$ 18.4	$ (0.3)	$ (4.4)	$ 1,222.1
SG&A as % gross profit ⁽¹⁾	61.4 %					62.0 %

Same Store SG&A expenses	$ 1,171.9	$ (1.5)	$ —	$ (0.3)	$ (4.4)	$ 1,165.7
Same Store SG&A as % gross profit ⁽¹⁾	61.9 %					61.6 %

⁽¹⁾ Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — U.K.
(Unaudited)
(In millions)

	Three Months Ended September 30, 2024
	U.S. GAAP	Severance costs	Acquisition costs	Non-GAAP Adjusted
SG&A expenses	$ 146.1	$ (0.4)	$ (6.1)	$ 139.6
SG&A as % gross profit ⁽¹⁾	83.7 %			80.0 %

Same Store SG&A expenses	$ 86.4	$ (0.4)	$ (6.1)	$ 79.9
Same Store SG&A as % gross profit ⁽¹⁾	84.7 %			78.3 %

	Nine Months Ended September 30, 2024
	U.S. GAAP	Severance costs	Acquisition costs	Non-GAAP Adjusted
SG&A expenses	$ 307.0	$ (1.0)	$ (8.0)	$ 298.0
SG&A as % gross profit ⁽¹⁾	81.5 %			79.1 %

Same Store SG&A expenses	$ 244.4	$ (1.0)	$ (8.0)	$ 235.4
Same Store SG&A as % gross profit ⁽¹⁾	81.0 %			78.0 %

	Nine Months Ended September 30, 2023
	U.S. GAAP	Dealership and real estate transactions	Non-GAAP Adjusted
SG&A expenses	$ 229.6	$ 0.9	$ 230.5
SG&A as % gross profit ⁽¹⁾	71.8 %		72.1 %

⁽¹⁾ Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.

View original content:https://www.prnewswire.com/news-releases/group-1-automotive-reports-third-quarter-2024-financial-results-302290898.html

SOURCE Group 1 Automotive, Inc.

Earnings News

ADAMA Reports Third Quarter and First Nine Months 2024 Results

30.10.2024 by admin

“Fight Forward” transformation plan already presenting benefits with the quality of business improving:

Q3 2024 adjusted gross profit 14% above Q3 2023, representing a third consecutive quarter of improvement in adjusted gross margin. Profitability improvement achieved following strict management of inventory supporting lower costs, as well as the continued focus on differentiated products and de-focus from low margin products supporting positive product sales mix;
Q3 2024 adjusted EBITDA more than doubled over Q3 2023, second consecutive quarter of improvement in EBITDA and EBITDA margin, with 9M 2024 adjusted EBITDA 6% above 9M 2023, reflecting continued OPEX management measures;
Significant improvement in cash flow despite challenging market conditions; Operating cash flow of $402 million achieved in 9M 2024 in comparison to $63 million in 9M 2023; Positive free cash flow of $179 million achieved in 9M 2024 in comparison to a negative cash flow of $276 million in 9M 2023.

Third Quarter 2024 Highlights:

Sales down 10% to $929 million (-11% in RMB terms; -6% in CER^[1]terms), mainly reflecting a 7% decrease in prices despite a 1% increase in volumes
Adjusted gross profit up 14% to $225 million (margin of 24.2%) from $198 million (margin of 19.2%) in Q3 2023
Adjusted EBITDA up 125% to $80 million (margin of 8.6%) from $35 million (margin of 3.4%) in Q3 2023
Adjusted net loss of $78 million; Reported net loss of $133 million
Improvement of $77 million in operating cash flow; of $159 million in Q3 2024 vs $82 million in Q3 2023
Improvement of $150 million in free cash flow; $128 million in Q3 2024 vs –$22 million in Q3 2023

First Nine Months 2024 Highlights:

Sales down 14% to $3,028 million (–13% in RMB terms; -12% in CER terms), mainly reflecting a 9% decrease in prices and a 3% decrease in volumes
Adjusted gross profit amounted to $782 million (margin of 25.8%) vs $815m (margin of 23.1%) in 9M 2023
Adjusted EBITDA up 6% to $332 million (margin of 11.0%) from $312 million (margin of 8.9%) in 9M 2023
Adjusted net loss of $149 million; Reported net loss of $259 million
Improvement of $339 million in operating cash flow; $402 million in 9M 2024 vs $63 million in 9M 2023
Improvement of $455 million in free cash flow; $179 million in 9M 2024 vs –$276 million in 9M 2023

BEIJING and TEL AVIV, Israel, Oct. 30, 2024 /PRNewswire/ — ADAMA Ltd. (the “Company”) (SZSE: 000553), today reported its financial results for the third quarter and first nine months of 2024 that ended September 30, 2024.

Gaël Hili, President and CEO of ADAMA, said, “ADAMA’s financial results for the third quarter of 2024 are an indication of the steady turnaround the Company is making. We have again demonstrated marked improvements in our quality of business and cash generation. Our decision to de-focus from certain commoditized generics, coupled with our continued focus on higher value, differentiated products, has led to improvement in the gross margin for the third quarter in a row and in the EBITDA & EBITDA margin for the second quarter in a row. The fierce competition in the market, mainly in such commoditized generics, validates this was the right decision for ADAMA.

“With three quarters of progressive improvements under our belt, I am confident that the “Fight Forward” transformation plan is putting the company on the right path for future success, and I plan to accelerate its implementation. In the coming months we will implement our evolved operating model aimed at deploying resources in countries where we can best drive profitable growth, enhancing our commercial operations, functional excellence, and customer engagement in key markets, creating greater cross company ‎efficiencies. ‎I also strongly believe that ADAMA’s portfolio strategy focused on delivering innovative products with attractive ROI for farmers is exactly the right one for the challenging market conditions we see, especially as farmer purchase power continues to be impacted across the world.

“On a personal note, I am excited to join ADAMA at this transformative time and look forward to shaping the company, together with our Global Leadership Team, to face and succeed in this challenging environment.” ‎

Table 1. Financial Performance Summary
USD (m)	As Reported			Adjustments			Adjusted
USD (m)	Q3 2024	Q3 2023	% Change		Q3 2024	Q3 2023	Q3 2024	Q3 2023	% Change
Revenues	929	1,033	(10 %)		–	–	929	1,033	(10 %)
Gross profit	188	185	2 %		37	12	225	198	14 %
% of sales	20.2 %	18.0 %					24.2 %	19.2 %
Operating income (loss) (EBIT)	(34)	(38)	12 %		46	7	13	(31)	141 %
% of sales	(3.6 %)	(3.7 %)					1.4 %	(3.0 %)
Loss before taxes	(122)	(110)	(12 %)		51	(3)	(72)	(113)	36 %
% of sales	(13.2 %)	(10.6 %)					(7.7 %)	(10.9 %)
Net loss	(133)	(112)	(19 %)		55	(4)	(78)	(115)	32 %
% of sales	(14.3 %)	(10.8 %)					(8.4 %)	(11.2 %)
EPS
– USD	(0.0569)	(0.0479)					(0.0335)	(0.0496)
– RMB	(0.4049)	(0.3435)					(0.2382)	(0.3556)
EBITDA	56	37	49 %		24	(2)	80	35	125 %
% of sales	6.0 %	3.6 %					8.6 %	3.4 %

USD (m)	As Reported			Adjustments			Adjusted
USD (m)	9M 2024	9M 2023	% Change		9M 2024	9M 2023	9M 2024	9M 2023	% Change
Revenues	3,028	3,524	(14 %)		–	–	3,028	3,524	(14 %)
Gross profit	672	748	(10 %)		110	67	782	815	(4 %)
% of sales	22.2 %	21.2 %					25.8 %	23.1 %
Operating income (EBIT)	1	94	(99 %)		136	24	137	117	17 %
% of sales	0.0 %	2.7 %					4.5 %	3.3 %
Loss before taxes	(203)	(155)	(31 %)		116	13	(87)	(142)	39 %
% of sales	(6.7 %)	(4.4 %)					(2.9 %)	(4.0 %)
Net loss	(259)	(146)	(77 %)		110	11	(149)	(135)	(9 %)
% of sales	(8.5 %)	(4.1 %)					(4.9 %)	(3.8 %)
EPS
– USD	(0.1110)	(0.0626)					(0.0638)	(0.0580)
– RMB	(0.7890)	(0.4474)					(0.4535)	(0.4161)
EBITDA	252	318	(21 %)		80	(6)	332	312	6 %
% of sales	8.3 %	9.0 %					11.0 %	8.9 %

Notes:

“As Reported” denotes the Company’s financial statements according to the Accounting Standards for Business Enterprises and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the Chinese Ministry of Finance (the “MoF) (collectively referred to as “ASBE”). Note that in the reported financial statements, according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs and certain idleness charges) are classified under COGS. Please see the appendix to this release for further information.
Relevant income statement items contained in this release are also presented on an “Adjusted” basis, which exclude items that are of a transitory or non-cash/non-operational nature that do not impact the ongoing performance of the business, and reflect the way the Company’s management and the Board of Directors view the performance of the Company internally. The Company believes that excluding the effects of these items from its operating results allows management and investors to effectively compare the true underlying financial performance of its business from period to period and against its global peers. A detailed summary of these adjustments appears in the appendix below.
The number of shares used to calculate both basic and diluted earnings per share in both Q3 and 9M 2024 and 2023 is 2,329.8 million shares.
In this table and all tables in this release numbers may not sum due to rounding.

The General Crop Protection (CP) Market Environment^[2]

During the third quarter of 2024, key commodity crop prices remained subdued, pressuring farmer income, despite some ease in the prices of inputs.

While channel inventory continues to ease, the high interest rate environment coupled with ample product supply and active ingredient prices from China remain at historic lows, continue to drive a just-in-time purchasing approach by the channel.

These dynamics have negatively impacted the pricing in the crop protection market.

Update on the War Situation in Israel

ADAMA is headquartered in Israel and has three manufacturing sites in the country. The war situation in Israel, including recent developments, and tensions in the Red Sea and shipping disruptions, have not had a material impact on the Company’s ability to support its markets or on ADAMA’s consolidated financial results.

“Fight Forward” Transformation Plan

As announced in the ADAMA’s full year 2023 financial results report, ADAMA initiated a plan in the first quarter of 2024 to revalue ADAMA through improving the quality of the business to turnaround the ‎Company. The Company-wide transformation plan is aimed at gradually delivering profit and cash targets over a period of 3 years (2024-2026).

Portfolio Development Update

Product Launches, Registrations:

During the third quarter of 2024 ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio.

Differentiated products address specific grower needs with strong ROI for farmers through innovative formulation technology and/or novel mixing concepts of Active Ingredients.

Select launches of differentiated products during the third quarter of 2024 include:

Launch of Bazak^® in India, powered by ADAMA’s proprietary formulation technology. Bazak^® is an innovative dual mode insecticide controlling brown plant hoppers in rice, based on the combination of two systemic molecules (Pymetrozine and Dinotefuran). ADAMA’s proprietary effervescent formulation technology, which is patent protected, provides superior and faster disintegration of granules, once added in to spray water. This technology ensures easy mixing and ease of use in farm level application.
Launch of Upturn^® in India, powered by Ayalon^™ formulation technology for enhanced spreading and penetration. Upturn^® is a microemulsion formulation herbicide combining the active ingredients Fomesafen and Propaquizafop, providing control over both broadleaf and grassy weeds, ensuring enhanced crop protection for Pulses and Soybeans.

Selected registrations of differentiated products during the third quarter of 2024 include:

Registration of Prothioconazole based products in additional countries:
– Soratel^® in Germany, Italy, Belgium and Bulgaria, powered by ADAMA’s proprietary Asorbital^® Formulation Technology
– Maganic^® in Germany, powered by ADAMA’s proprietary Asorbital^® Formulation Technology
– Forapro^® in Hungary, powered by ADAMA’s proprietary Asorbital^® Formulation Technology
– Maxentis^® in Argentina, Australia, Austria, Belgium, Poland, Slovakia, US
Registration of Matos^® in South Korea, an insecticide powered by Ayalon^™ formulation technology for enhanced spreading and penetration. Matos is the first worldwide registration of an ADAMA Spirotetramat based solution.
Registration of ‎ Edaptis^® in Italy, Czech Republic and Greece. Edaptis^® is an innovative dual mode action post emergence ready-to-use herbicide that provides broad-spectrum control of grassy weeds and improved efficacy in combating resistant populations.
Registration of ‎ Plethora^® in Mexico. Plethora is an innovative insecticide that combines two potent active ingredients, Novaluron and Indoxacarb. Designed for broad-spectrum control of chewing pests, it offers farmers the advantage of not needing to identify the specific pest before application.
Registration of ‎ Sonavio^® in Portugal. Sonavio is a selective herbicide based on Bifenox with high efficacy against broadleaf weeds and is suitable for use on various crops, notably some vegetables which currently have very few weed control solutions.

Select patents granted during the third quarter of 2024 include:

Patent granted in the USA for a stable liquid formulation of Clethodim and Fluroxypyr combination, demonstrating ADAMA’s commitment to delivering advanced formulation technologies to improve ease of use for the farmer.
Patent granted in Ukraine for a mixture of Aminopyralid and Quinmerac, an efficient and innovative mixture for combating weeds.

Financial Highlights

Revenues in the third quarter declined by approximately 10% (-11% in RMB terms; -6% in CER terms) to $929 million, presenting a decrease of 7% in prices and an increase of 1% in volumes.

The lower sales reflect lower market prices and de-focus from selected low profit products. High competition from Chinese and ‎Indians manufactures as well as declining active ingredient prices have impacted the pricing of the overall crop protection market led by the pricing of commoditized generic crop protection. Moreover, despite improvement in market inventory levels, the channel is exercising ‎cautious buying patterns in light of price volatility and a higher interest rate ‎environment.

These results brought the revenues in the first nine months of 2024 to $3,028 million, a decline of approximately 14% (-13% in RMB terms; -12% in CER terms), reflecting a decrease of 9% in prices and a decrease of 3% in volumes.

Table 2. Regional Sales Performance
	*Q3 2024* $m	*Q3 2023* $m	*Change* *USD*	*Change* *CER*	*9M 2024* $m	*9M 2023* $m	*Change* *USD*	*Change* *CER*
Europe, Africa & Middle East	203	235	(14 %)	(14 %)	882	999	(12 %)	(10 %)
North America	158	133	19 %	19 %	572	568	1 %	1 %
Latin America	287	350	(18 %)	(6 %)	687	912	(25 %)	(20 %)
Asia Pacific	282	315	(11 %)	(11 %)	887	1,044	(15 %)	(14 %)
Of which China	109	130	(16 %)	(17 %)	384	453	(15 %)	(14 %)
Total	929	1,033	(10 %)	(6 %)	3,028	3,524	(14 %)	(12 %)
Notes: CER: Constant Exchange Rates Numbers may not sum due to rounding

Europe, Africa & Middle East (EAME):

Sales in EAME decreased in the third quarter and first nine months of 2024, following negative weather conditions in Eastern, Central and Northern Europe, and strong competition across the region, which have impacted pricing.

North America: Consumer & Professional Solutions – Sales were higher in the third quarter and nine-month period supported by good weather, while the Company focused on higher margin products. ‎

In the US Ag market, sales increased in the third quarter supported by channel restocking against channel destocking in the corresponding quarter and decreased in the first nine months of 2024, following pricing pressure in light of competition and lower farmer profitability, just-in-time purchasing patterns reflecting the high interest rate environment.

‎ADAMA’s sales in Canada in the third quarter were higher and reflected good demand for pre and post harvest herbicides and fungicides, while the lower sales in the nine month period were impacted by low insecticide demand due to weather conditions.

Latin America: Brazil – decline in sales in the third quarter and first nine months of 2024, reflecting ‎the softer pricing following competition from Chinese competitors, “wait and see” farmers behavior ‎postponing CP purchases, negative impact of weather as well as de-focus from non-selective herbicides. ‎ ‎The Company is focusing its sales on higher margin products, with new product ‎introductions of differentiated products continuing to do well. ‎

In the rest of LATAM sales in the third quarter and the first nine-month period reflected negative weather conditions which have impacted the seasons across the region, while pricing was impacted by high competition. Despite this, new product introductions of differentiated products supported sales.

Asia-Pacific (APAC):

In China, the branded formulations sales in the third quarter were impacted by lower customer demand due to high channel inventory, market competition and extreme weather events as typhoon in Southern China. The pricing pressure continued throughout the first nine months. The Non-Ag business saw a stable demand and improved business quality despite the impact of lower prices.

In the Pacific region, sales in the third quarter and the first nine months were lower, impacted by softer pricing and just-in-time purchasing patterns. Sales in the third quarter were supported by positive weather conditions in Eastern Australia and in New Zealand.

Sales in India were stable in the third quarter and down in the nine-month period, impacted by erratic weather and softer pricing, particularly in ‎commoditized products.

Sales in the wider APAC region continued to experience pricing pressure following intense competition from China, particularly in commoditized products, and low demand as customers focused on lowering stocks and tended to buy products as needed.

Gross Profit reported in the third quarter increased by 2% to $188 million (gross margin of 20.2%) compared to $185 million (gross margin of 18.0%) in the same quarter last year and in the nine-month period reached $672 million (gross margin of 22.2%), compared to $748 million (gross margin of 21.2%) last year.

Adjustments to reported results: The adjusted gross profit mainly includes reclassification of all inventory impairment, taxes and surcharge and excludes certain transportation costs (classified under operating expenses), as well as a provision related to the soil & water cleanup and remediation regarding the Company’s ‎different sites in Israel. ‎

Adjusted gross profit in the third quarter increased by 14% to $225 million (gross margin of 24.2%) compared to $198 million (gross margin of 19.2%) in the same quarter last year and in the nine-month period reached $782 million (gross margin of 25.8%) compared to $815 million (gross margin of 23.1%) last year.

Despite the decline in sales in the third quarter and first nine months of 2024, the Company improved the gross margin both in the third quarter and nine-month period following the positive impact of new inventory sold, priced at market levels and following management’s focus on the quality of business which led to an improvement in the sales mix of higher margin products, moderated by the negative impact of exchange rates. In the third quarter the Company also recorded a slight increase in quantities sold, which had a positive impact.

Operating expenses reported in the third quarter of 2024 were $222 million (23.9% of sales), compared to $224 million (21.7% of sales) in the same quarter last year and reached $671 million (22.2% of sales) in the nine-month period compared to $655 million (18.6% of sales) last year.

Adjustments to reported results: please refer to the explanation regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment.

Additionally, the Company recorded certain non-operational items within its reported operating expenses amounting to $37 million in Q3 2024 in comparison to $7 million in Q3 2023 and $113 in 9M 2024 in comparison to $22 in 9M 2023. These include mainly (i) provisions, such as legal claims, registration impairment and update of registration depreciation (ii) measures to improve efficiencies, (iii) non-cash amortization charges in respect of Transfer Assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition, (iv) charges related to the non-cash amortization of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired. For further details on these non-operational items, please see the appendix to this release.

Adjusted operating expenses in the third quarter were $212 million (22.8% of sales), compared to $229 million (22.1% of sales) in the same quarter last year, and reached $645 million (21.3% of sales) in the nine month period compared to $698 million (19.8% of sales) last year.

The operating expenses were lower in the third quarter and first nine months of 2024, following undertaking tight OPEX management measures, including the impact of initiatives included in the Company’s transformation plan, lower transportation and logistics costs and the ‎positive impact of exchange rates.

Operating income reported in the third quarter reached a loss of $34 million )-3.6% of sales) compared to a loss of $38 million (-3.7% of sales) in the third quarter of 2023 and amounted to $1 million (0.0% of sales) in the nine month period compared to $94 million (2.7% of sales) last year.

Adjusted operating income in the third quarter amounted to $13 million (1.4% of sales) compared to a loss of $31 million (-3.0% of sales) in the same quarter last year and increased by 17% to $137 million (4.5% of sales) in the nine-month period compared to $117 million (3.3% of sales) last year.

EBITDA reported in the third quarter increased by 49% to $56 million (6.0% of sales) compared to $37 million (3.6% of sales) in the same quarter last year and amounted to $252 million (8.3% of sales) in the nine-month period compared to $318 million (9.0% of sales) last year.

Adjusted EBITDA in the third quarter increased by 125% to $80 million (8.6% of sales) compared to $35 million (3.4% of sales) in the same quarter last year and increased by 6% to $332 million (11.0% of sales) in the nine-month period compared to $312 million (8.9% of sales) last year.

Adjusted financial expenses amounted to $84 million in the third quarter, compared to $82 million in the corresponding quarter last year and amounted to $224 million in the nine-month period compared to $259 million last year.

In the third quarter of 2024, the financial expenses were slightly higher due to higher hedging costs on exchange rates, the net impact of a higher Israeli CPI on the ILS-denominated CPI-linked bonds moderated by lower interest paid on loans following a decrease in loans in light of the positive cash flow achieved, better loan mix and improved efficiency of cash management.

In the nine-month period the financial expenses were lower also due to lower interest paid on loans in light of the positive cash flow achieved, better loan mix and improved efficiency of cash management as well as the net impact of a lower Israeli CPI on the ILS-denominated CPI-linked bonds.

Adjusted taxes on income in the third quarter amounted to tax expenses of $6 million, compared to tax expenses of $3 million in the corresponding quarter last year and amounted to expenses of $61 million in the first nine months of the year compared to a tax income of $7 million last year.

Despite reaching losses before tax, the Company recorded tax expenses in the third quarter and first nine months of the year mainly ‎because the losses were primarily incurred by subsidiaries with relatively lower tax rates, while some ‎of them did not create deferred tax assets on the losses. On the other hand, the subsidiaries that ‎generated profit have a higher tax rate. ‎

In first nine months of 2024 the company recorded tax expenses due to the non-‎cash impact of the weakness of the BRL compared with tax income due to stronger BRL in the first nine months of 2023. ‎In the third quarter of 2024 the company recorded tax income due to the non-‎cash impact of the stronger BRL compared with tax expenses due to the weakness of the BRL in the third quarter of 2023. ‎

Net loss reported in the third quarter was $133 million and $259 million in the nine-month period, compared to a net loss of $112 million and $146 million in the corresponding periods last year, respectively.

Adjusted net loss in the third quarter was $78 million and $149 million in the nine-month period, compared to a net loss of $115 million and $135 million in the corresponding periods last year, respectively.

Trade working capital as of September 30, 2024, was $2,218 million compared to $2,742 million as of September 30, 2023. Inventory held by the Company continued to decline from the end of 2023, including inventory of finished goods, and reached $1,740 million as of September 30, 2024, in comparison to $2,129 million as of September 30, 2023. The decrease in working capital was following the Company’s implementation of selective procurement practices, which already began in 2023, and which led to a decrease in the level of inventory held by the Company and lower trade payables. The Company also improved its payable terms following implementation of initiatives part of the Company’s transformation plan. The decrease in receivables reflected the intensive collections as well as the lower sales.

Cash Flow: Operating cash flow of $159 million and $402 million was generated in the third quarter and first nine-month period in 2024 respectively, compared to $82 million generated in the third quarter and $63 million generated in the nine-month period in 2023. The operating cash flow was significantly improved in the third quarter and first nine months of 2024 due to the company maintaining strict procurement practices, intensive collections and an improvement in supplier terms, reflecting implementation of initiatives taken as part of the company’s transformation plan.

Net cash used in investing activities was $7 million in the third quarter and $122 million in the first nine-month period in 2024, compared to $69 million and $231 million in the corresponding periods last year, respectively. The lower cash used in investing activities in the third quarter and first nine months of 2024 reflected implementation of the Company’s transformation plan including the prioritization of investments in its manufacturing facilities as well as prioritization of investments in intangible assets relating to ADAMA’s global registrations, in line with the optimization of the Company’s portfolio. In the third quarter of 2024, the Company recorded the sale of a real estate asset whereas in the first quarter of 2023 the company completed the acquisition of AgriNova New Zealand.

Free cash flow of $128 million was generated in the third quarter and $179 million generated in the nine-month period compared to $22 million consumed in the third quarter and $276 million consumed in the corresponding periods last year, respectively, reflecting the aforementioned operating and investing cash flow dynamics.

Table 3. Revenues by operating segment

Sales by segment
	Q3 2024 USD (m)	%	Q3 2023 USD (m)	%	9M 2024 USD (m)	%	9M 2023 USD (m)	%
Crop Protection	840	90 %	943	91 %	2,746	91 %	3,233	92 %
Intermediates and Ingredients	89	10 %	90	9 %	282	9 %	291	8 %
Total	929	100 %	1,033	100 %	3,028	100 %	3,524	100 %

Sales by product category
	Q3 2024 USD (m)	%	Q3 2023 USD (m)	%	9M 2024 USD (m)	%	9M 2023 USD (m)	%
Herbicides	345	37 %	427	41 %	1,213	40 %	1,531	43 %
Insecticides	302	33 %	304	29 %	896	30 %	989	28 %
Fungicides	193	21 %	212	20 %	638	21 %	713	20 %
Intermediates and Ingredients	89	10 %	90	9 %	282	9 %	291	8 %
Total	929	100 %	1,033	100 %	3,028	100 %	3,524	100 %
Notes: The sales split by product category is provided for convenience purposes only and is not representative of the way the Company is managed or in which it makes its operational decisions. Numbers may not sum due to rounding.

Further Information

All filings of the Company, together with a presentation of the key financial highlights of the period, can be accessed through the Company website at www.adama.com.

About ADAMA

ADAMA Ltd. is a global leader in crop protection, providing practical solutions to farmers across the world to combat weeds, insects and disease. Our culture empowers ADAMA’s people to actively listen to farmers and ideate from the field. ADAMA’s diverse portfolio of existing active ingredients, coupled with its leading formulation capabilities and proprietary formulation technology platforms, uniquely position the company to develop high-quality, innovative and sustainable products, to address the many challenges farmers and customers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.com and follow us on Twitter® at @ADAMAAgri.

Contact
Rivka Neufeld	Zhujun Wang
Global Investor Relations	China Investor Relations
Email: ir@adama.com	Email: irchina@adama.com

Abridged Adjusted Consolidated Financial Statements

The following abridged consolidated financial statements and notes have been prepared as described in Note 1 in this appendix. While prepared based on the principles of Chinese Accounting Standards (ASBE), they do not contain all of the information which either ASBE or IFRS would require for a complete set of financial statements, and should be read in conjunction with the consolidated financial statements of both ADAMA Ltd. and Adama Agricultural Solutions Ltd. as filed with the Shenzhen and Tel Aviv Stock Exchanges, respectively.

Relevant income statement items contained in this release are also presented on an “Adjusted” basis, which exclude items that are of a one-time or non-cash/non-operational nature that do not impact the ongoing performance of the business, and reflect the way the Company’s management and the Board of Directors view the performance of the Company internally. The Company believes that excluding the effects of these items from its operating results allows management and investors to effectively compare the true underlying financial performance of its business from period to period and against its global peers.

*Abridged Consolidated Income Statement for the Third Quarter of 2024*
*Adjusted^[3]*	Q3 2024 USD (m)	Q3 2023 USD (m)	Q3 2024 RMB (m)	Q3 2023 RMB (m)
Revenues	929	1,033	6,613	7,407
Cost of Sales	702	815	4,994	5,846
Other costs	2	20	20	142
Gross profit	225	198	1,600	1,418
% of revenue	24.2 %	19.2 %	24.2 %	19.2 %
Selling & Distribution expenses	162	169	1,151	1,215
General & Administrative expenses	33	36	236	259
Research & Development expenses	14	15	102	110
Other operating expenses (income)	3	8	21	56
Total operating expenses	212	229	1,509	1,640
% of revenue	22.8 %	22.1 %	22.8 %	22.1 %
Operating income (EBIT)	13	(31)	90	(222)
% of revenue	1.4 %	(3.0 %)	1.4 %	(3.0 %)
Financial expenses	84	82	600	587
Loss before taxes	(72)	(113)	(510)	(809)
Taxes on Income	6	3	45	20
Net loss	(78)	(115)	(555)	(829)
% of revenue	(8.4 %)	(11.2 %)	(8.4 %)	(11.2 %)
Adjustments	55	(4)	388	(28)
Reported Net loss	(133)	(112)	(943)	(800)
% of revenue	(14.3 %)	(10.8 %)	(14.3 %)	(10.8 %)
Adjusted EBITDA	80	35	569	254
% of revenue	8.6 %	3.4 %	8.6 %	3.4 %
Adjusted EPS^[4] – Basic	(0.0335)	(0.0496)	(0.2382)	(0.3556)
– Diluted	(0.0335)	(0.0496)	(0.2382)	(0.3556)
Reported EPS^[5] – Basic	(0.0569)	(0.0479)	(0.4049)	(0.3435)
– Diluted	(0.0569)	(0.0479)	(0.4049)	(0.3435)

*Abridged Consolidated Income Statement for the First Nine Months of 2024*
*Adjusted^[5]*	9M 2024 USD (m)	9M 2023 USD (m)	9M 2024 RMB (m)	9M 2023 RMB (m)
Revenues	3,028	3,524	21,523	24,660
Cost of Sales	2,238	2,667	15,909	18,673
Other costs	8	42	59	299
Gross profit	782	815	5,555	5,688
% of revenue	25.8 %	23.1 %	25.8 %	23.1 %
Selling & Distribution expenses	500	540	3,552	3,782
General & Administrative expenses	102	105	723	735
Research & Development expenses	45	53	320	373
Other operating expenses (income)	(1)	0	(9)	0
Total operating expenses	645	698	4,585	4,890
% of revenue	21.3 %	19.8 %	21.3 %	19.8 %
Operating income (EBIT)	137	117	970	799
% of revenue	4.5 %	3.3 %	4.5 %	3.2 %
Financial expenses	224	259	1,590	1,815
Loss before taxes	(87)	(142)	(620)	(1,016)
Taxes on Income	61	(7)	436	(47)
Net loss	(149)	(135)	(1,057)	(969)
% of revenue	(4.9 %)	(3.8 %)	(4.9 %)	(3.9 %)
Adjustments	110	11	782	73
Reported Net loss	(259)	(146)	(1,838)	(1,042)
% of revenue	(8.5 %)	(4.1 %)	(8.5 %)	(4.2 %)
Adjusted EBITDA	332	312	2,357	2,168
% of revenue	11.0 %	8.9 %	11.0 %	8.8 %
Adjusted EPS^[6] – Basic	(0.0638)	(0.0580)	(0.4535)	(0.4161)
– Diluted	(0.0638)	(0.0580)	(0.4535)	(0.4161)
Reported EPS^[^5] – Basic	(0.1110)	(0.0626)	(0.7890)	(0.4474)
– Diluted	(0.1110)	(0.0626)	(0.7890)	(0.4474)

Abridged Consolidated Balance Sheet
	September 30 2024 USD (m)	September 30 2023 USD (m)	September 30 2024 RMB (m)	September 30 2023 RMB (m)
Assets
Current assets:
Cash at bank and on hand	596	737	4,178	5,294
Bills and accounts receivable	1,219	1,327	8,539	9,529
Inventories	1,740	2,129	12,192	15,284
Other current assets, receivables and prepaid expenses	278	266	1,946	1,908
Total current assets	3,832	4,459	26,855	32,015
Non-current assets:
Fixed assets, net	1,746	1,759	12,233	12,629
Rights of use assets	79	90	555	646
Intangible assets, net	1,386	1,457	9,714	10,461
Deferred tax assets	208	245	1,460	1,758
Other non-current assets	100	102	702	730
Total non-current assets	3,520	3,653	24,665	26,224
Total assets	7,352	8,112	51,520	58,240

Liabilities
Current liabilities:
Loans and credit from banks and other lenders	938	1,258	6,574	9,032
Bills and accounts payable	760	724	5,325	5,197
Other current liabilities	836	959	5,859	6,888
Total current liabilities	2,534	2,941	17,758	21,118
Long-term liabilities:
Loans and credit from banks and other lenders	380	423	2,666	3,038
Debentures	944	1,003	6,613	7,200
Deferred tax liabilities	43	42	304	305
Employee benefits	81	90	570	648
Other long-term liabilities	547	458	3,830	3,290
Total long-term liabilities	1,995	2,017	13,982	14,480
Total liabilities	4,530	4,958	31,741	35,598

Equity
Total equity	2,823	3,154	19,779	22,642

Total liabilities and equity	7,352	8,112	51,520	58,240
Numbers may not sum due to rounding

Abridged Consolidated Cash Flow Statement for the Third Quarter of 2024
	Q3 2024 USD (m)	Q3 2023 USD (m)	Q3 2024 RMB (m)	Q3 2023 RMB (m)
Cash flow from operating activities:
Cash flow from operating activities	159	82	1,131	591
Cash flow from operating activities	159	82	1,131	591

Investing activities:
Acquisitions of fixed and intangible assets	(38)	(74)	(274)	(529)
Net cash received from disposal of fixed assets, intangible assets and others	30	1	212	6
Other investing activities	1	4	10	30
Cash flow used for investing activities	(7)	(69)	(51)	(493)

Financing activities:
Receipt of loans from banks and other lenders	42	49	297	353
Repayment of loans from banks and other lenders	(112)	(52)	(796)	(374)
Interest payment and other	(28)	(46)	(202)	(331)
Other financing activities	(22)	138	(157)	987
Cash flow used for financing activities	(121)	89	(853)	635
Effects of exchange rate movement on cash and cash equivalents	1	1	(63)	(23)
Net change in cash and cash equivalents	32	103	158	710
Cash and cash equivalents at the beginning of the period	557	633	3,971	4,571
Cash and cash equivalents at the end of the period	589	736	4,129	5,281

Free Cash Flow	128	(22)	912	(97)
Numbers may not sum due to rounding

Abridged Consolidated Cash Flow Statement for the First Nine Months of 2024
	9M 2024 USD (m)	9M 2023 USD (m)	9M 2024 RMB (m)	9M 2023 RMB (m)
Cash flow from operating activities:
Cash flow used for operating activities	402	63	2,862	526
Cash flow from (used for) operating activities	402	63	2,862	526

Investing activities:
Acquisitions of fixed and intangible assets	(151)	(244)	(1,074)	(1,707)
Net cash received from disposal of fixed assets, intangible assets and others	34	5	242	37
Acquisition of subsidiary	–	(22)	–	(148)
Other investing activities	(5)	29	(35)	205
Cash flow used for investing activities	(122)	(231)	(866)	(1,614)

Financing activities:
Receipt of loans from banks and other lenders	235	647	1,666	4,458
Repayment of loans from banks and other lenders	(505)	(281)	(3,589)	(1,974)
Interest payments and other	(111)	(121)	(789)	(852)
Dividend to shareholders	–	(9)	–	(63)
Other financing activities	1	63	8	467
Cash flow from (used for) financing activities	(380)	298	(2,703)	2,036
Effects of exchange rate movement on cash and cash equivalents	3	(2)	(21)	107
Net change in cash and cash equivalents	(97)	129	(728)	1,056
Cash and cash equivalents at the beginning of the period	686	607	4,857	4,225
Cash and cash equivalents at the end of the period	589	736	4,129	5,281

Free Cash Flow	179	(276)	1,276	(1,849)
Numbers may not sum due to rounding

Notes to Abridged Consolidated Financial Statements

Note 1: Basis of preparation

Basis of presentation and accounting policies: The abridged consolidated financial statements for the quarters ended September 30, 2024 and 2023 incorporate the financial statements of ADAMA Ltd. and of all of its subsidiaries (the “Company”), including Adama Agricultural Solutions Ltd. (“Solutions”) and its subsidiaries.

The Company has adopted the Accounting Standards for Business Enterprises (ASBE) issued by the Ministry of Finance (the “MoF”) and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the MoF (collectively referred to as “ASBE”).

The abridged consolidated financial statements contained in this release are presented in both Chinese Renminbi (RMB), as the Company’s shares are traded on the Shenzhen Stock Exchange, as well as in United States dollars ($) as this is the major currency in which the Company’s business is conducted. For the purposes of this release, a customary convenience translation has been used for the translation from RMB to US dollars, with Income Statement and Cash Flow items being translated using the quarterly average exchange rate, and Balance Sheet items being translated using the exchange rate at the end of the period.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated.

Note 2: Abridged Financial Statements

For ease of use, the financial statements shown in this release have been abridged as follows:

Abridged Consolidated Income Statement:

“Gross profit” in this release is revenue less costs of goods sold, taxes and surcharges, inventory impairment and other idleness charges (in addition to those already included in costs of goods sold); part of the idleness charges is removed in the Adjusted financial statements
“Other operating expenses” includes impairment losses (not including inventory impairment); gain (loss) from disposal of assets and non-operating income and expenses
“Operating expenses” in this release differ from those in the formally reported financial statements in that certain transportation costs have been reclassified from COGS to Operating Expenses.
“Financial expenses” includes net financing expenses and gains/losses from changes in fair value.

Abridged Consolidated Balance Sheet:

“Other current assets, receivables and prepaid expenses” includes financial assets held for trading; financial assets in respect of derivatives; prepayments; other receivables; and other current assets
“Fixed assets, net” includes fixed assets and construction in progress
“Intangible assets, net” includes intangible assets and goodwill
“Other non-current assets” includes other equity investments; long-term equity investments; long-term receivables; investment property; and other non-current assets
“Loans and credit from banks and other lenders” includes short-term loans and non-current liabilities due within one year
“Other current liabilities” includes financial liabilities in respect of derivatives; payables for employee benefits, taxes, interest, dividends and others; advances from customers and other current liabilities
“Other long-term liabilities” includes long-term payables, provisions, deferred income and other non-current liabilities

Income Statement Adjustments

	Q3 2024 USD (m)	Q3 2023 USD (m)	Q3 2024 RMB (m)	Q3 2023 RMB (m)
Reported Net Loss	(133)	(112)	(943)	(800)
Adjustments to COGS & Operating Expenses:
1. Amortization of acquisition-related PPA and other acquisition related costs	6	4	42	30
2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash)	5	5	37	34
3. Accelerated depreciation	1	1	10	6
4. Incentive plans	–	(2)	–	(16)
5. ASBEs classifications COGS impact	(27)	(12)	(195)	(84)
6. ASBEs classifications OPEX impact	27	12	195	84
7. Measures to improve efficiencies	8	–	59	–
8. Provisions such as legal claims, registration impairment and ‎update of registration depreciation ‎	19	–	139	–
9. Soil and water cleanup and remediation	6	–	43	–
Total Adjustments to Operating Income (EBIT)	46	7	330	53
Total Adjustments to EBITDA	24	(2)	173	(14)
Adjustments to Financing Expenses:
10. Non-cash adjustment related to put option revaluations	3	(11)	21	(77)
11. Other financing expenses	1	–	10	–
Adjustments to Taxes:
Taxes impact	4	(1)	27	(5)
Total adjustments to Net loss	55	(4)	388	(28)
Adjusted Net Loss	(78)	(115)	(555)	(829)

	9M 2024 USD (m)	9M 2023 USD (m)	9M 2024 RMB (m)	9M 2023 RMB (m)
Reported Net loss	(259)	(146)	(1,838)	(1,042)
Adjustments to COGS & Operating Expenses:
1. Amortization of acquisition-related PPA and other acquisition related costs	14	13	97	88
2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash)	15	16	109	109
3. Accelerated depreciation	3	2	22	16
4. Incentive plans	–	(7)	–	(48)
5. ASBEs classifications COGS impact	(87)	(65)	(617)	(452)
6. ASBEs classifications OPEX impact	87	65	617	452
7. Measures to improve efficiencies	23	–	166	–
8. Provisions such as legal claims, registration impairment and ‎update of registration depreciation	63	–	451	–
9. ‎Soil and water cleanup and remediation‎	17	–	121	–
Total Adjustments to Operating Income (EBIT)	136	24	965	165
Total Adjustments to EBITDA	80	(6)	567	(41)
Adjustments to Financing Expenses:
10. Non-cash adjustment related to put options revaluation	(30)	(11)	(212)	(77)
11. Other financing expenses	10	–	69	–
Adjustments to Taxes:
Taxes impact	(6)	(2)	(41)	(15)
Total adjustments to Net loss	110	11	782	73
Adjusted Net loss	(149)	(135)	(1,057)	(969)

Notes:

1. Amortization of acquisition-related PPA and other acquisition related costs:
a. Amortization of Legacy PPA of 2011 acquisition of Solutions (non-cash): Under ASBE, since the third combined reporting for Q3 2017, the Company has inherited the historical “legacy” amortization charge that ChemChina previously was incurring in respect of its acquisition of Solutions in 2011. This amortization is done in a linear manner on a quarterly basis, most of which will have been completed by the end of 2020.
b. Amortization of acquisition-related PPA (non-cash) and other acquisition-related costs: Related mainly to the non-cash amortization of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired, as well as other M&A-related costs.

2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash): The proceeds from the Divestment of crop protection products in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina, net of taxes and transaction expenses, were paid to Syngenta in return for the transfer of a portfolio of products in Europe of similar nature and economic value. Since the products acquired from Syngenta are of the same nature and with the same net economic value as those divested, and since in 2018 the Company adjusted for the one-time gain that it made on the divested products, the additional amortization charge incurred due to the written-up value of the acquired assets is also adjusted to present a consistent view of Divestment and Transfer transactions, which had no net impact on the underlying economic performance of the Company. These additional amortization charges will continue until 2032 but at a reducing rate, yet will still be at a meaningful level until 2028.

3. Accelerated depreciation: These charges relate to accelerated depreciation attributed to the upgrade & relocation programs in China and Israel, in which production assets located in the old production sites in Huai’An and Beer-Sheva are in relocation process to new sites. Since some older production assets may not be able to be relocated, or are not operational, these are depreciated over a shorter period.

4. Incentive plans: ADAMA granted certain of its employees, a long-term incentive (LTI) in the form of ‘phantom’ awards linked to the Company’s share price. As such, the Company records an expense, or recognizes income, depending on the fluctuation in the Company’s share price, regardless of award exercises. To neutralize the impact of such share price movements on the measurement of the Company’s performance and expected employee compensation and to reflect the existing phantom awards, in the Company’s adjusted financial performance, the LTI is presented on an equity-settled basis in accordance with the value of the existing plan at the grant date.

5. 6. ASBEs classifications COGS impact: according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs) are classified under COGS.

7. ‎Measures to improve efficiencies: ADAMA recorded costs due to certain measures initiated to improve efficiencies mainly personnel changes

8. Provisions such as legal claims, registration impairment and ‎update of registration depreciation.

9. Soil and water cleanup and remediation: a wholly-owned indirect subsidiary of the Company ‎filed with Israel’s Ministry of Environmental Protection a remediation plan regarding ‎its plant in Be’er Sheva in Q2 2024. During Q3 2024 additional expenses were recorded regarding the Company’s sites in Israel. ‎

10. Non-cash, non-recurring items due to revaluation of put options attributed to minority stake in subsidiaries.

11. Other financing expenses: Expenses mainly deriving from tax claims surcharges and inflation.

Exchange Rate Data for the Company’s Principal Functional Currencies

	September 30			Q3 Average			9M Average
	2024	2023	Change	2024	2023	Change	2024	2023	Change
EUR/USD	‎1.119‎	1.060	5.60 %	1.098	1.088	0.97 %	1.087	1.083	0.34 %
USD/BRL	‎5.448‎	5.008	-8.80 %	5.545	4.880	-13.63 %	5.238	5.009	-4.58 %
USD/PLN	‎3.819‎	4.370	12.60 %	3.899	4.138	5.76 %	3.963	4.236	6.45 %
USD/ZAR	‎17.094‎	18.939	9.74 %	17.971	18.66	3.67 %	18.481	18.347	-0.73 %
AUD/USD	‎0.692‎	0.648	6.76 %	0.670	0.654	2.39 %	0.662	0.669	-0.99 %
GBP/USD	‎1.341‎	1.223	9.61 %	1.300	1.265	2.73 %	1.277	1.244	2.65 %
USD/ILS	‎3.710‎	3.824	2.98 %	3.713	3.746	0.89 %	3.701	3.643	-1.60 %
USD L 3M	‎4.59%‎	5.39 %	-0.8 bp	5.08 %	5.39 %	-0.31 bp	5.24 %	3.56 %	1.68bp

	September 30			Q3 Average			9M Average
	2024	2023	Change	2024	2023	Change	2024	2023	Change
USD/RMB	7.007	7.180	-2.40 %	7.115	7.173	-0.81 %	7.108	7.008	1.44 %
EUR/RMB	7.843	7.610	3.06 %	7.816	7.803	0.15 %	7.725	7.590	1.78 %
RMB/BRL	0.777	0.697	-11.47 %	0.779	0.680	-14.55 %	0.737	0.715	-3.10 %
RMB/PLN	0.545	0.609	10.45 %	0.548	0.577	4.99 %	0.557	0.604	7.77 %
RMB/ZAR	2.439	2.638	7.52 %	2.526	2.601	2.88 %	2.600	2.618	0.69 %
AUD/RMB	4.847	4.652	4.20 %	4.766	4.693	1.56 %	4.707	4.687	0.43 %
GBP/RMB	9.396	8.783	6.98 %	9.250	9.077	1.90 %	9.074	8.714	4.13 %
RMB/ILS	0.529	0.533	0.59 %	0.522	0.522	0.08 %	0.521	0.520	-0.16 %
RMB Shibor 3M	1.84 %	2.30 %	-0.46 bp	1.86 %	2.11 %	-0.25bp	2.04 %	2.27 %	-0.23 bp

Forward looking statement:

This press release published by ADAMA Ltd. or ADAMA Agricultural Solutions Ltd. (together the “Company”) is for marketing and information purposes only, and contains forward-looking statements which are based on Company’s management’s beliefs and assumptions and on information currently available to the Company’s management. By this press release, the Company does not intend to give, and the press release does not constitute, professional or business advice or an offer or recommendation to perform any transaction in the Company’s securities. The accuracy, completeness and/or adequacy of the content of this press release, as well as any estimation and/or assessment included in this press release, if at all, is not warranted or guaranteed and the Company disclaims any intention and/or obligation to comply with such content. The Company shall not be liable for any loss, claim, liability or damage of any kind resulting from your reliance on, or reference to, any detail, fact or opinion presented herein. The Company’s assessments are based on the information available to the Company as of the date hereof, and may not be realized or be realized in a different manner than the Company estimates, inter alia, due to factors out of the Company’s control, including the risk factors listed in the Company’s annual reports, changes in the industry or potential operations of the Company’s competitors. Any content contained herein shall not constitute or be construed as any regulatory, valuation, legal, tax, accounting and investment advice or any advice of any kind or any part of it, nor shall they constitute or be construed as any recommendation, solicitation, offer or commitment (or any part of it) to buy, sell, subscribe for or underwrite any securities, provide any credit or insurance or engage in any transactions. Before entering into any transactions, you shall ensure that you fully understand the potential risks and returns of such transactions. Before making such decisions, you shall consult the advisors you think necessary, including your accountant, investment advisor and legal and tax specialists. The Company and its affiliates, controlling persons, directors, officials, partners, employees, agents, representatives or their advisors shall not assume any responsibilities of any kind (including negligence or others) for the use of and reliance on such information by you or any person to whom such information are provided.

[1] CER – Constant Exchange Rates

[2] Sources: CCPIA (China Crop Protection Industry Association), BAIINFO, FocusEconomics, China ‎Containerized Freight Index, internal sources

[3] For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.

[4] The number of shares used to calculate both basic and diluted earnings per share in both Q3 2024 and 2023 is 2,329.8 million shares.

[5] For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.

[6] The number of shares used to calculate both basic and diluted earnings per share in both 9M 2024 and 2023 is 2,329.8 million shares.

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SOURCE ADAMA Ltd.