The Management Board, represented by Krzysztof Oleksowicz and Piotr Zamora, made o summary of financial results of Inter Cars Group during a phone conference organized as an addendum to financial data published for the three quarters of 2013.

 

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The Member of the Management Board, Krzysztof Oleksowicz, as well as Piotr Zamora – the company’s Finance Director, who hosted the conference call, referred to all key conclusions of the financial report summing up the three quarters of the Company’s operations.

 

 

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Krzysztof Oleksowicz said:

The success if the third quarter is a result of many factors, out of which the most important were:
1) the biggest branch chain in Poland (290 branches in Poland and abroad – 136 branches in other countries);
2) developed logistic chain prepared to serve efficiently an increased volume of goods and scale advantages noticeable especially with monoculture goods;
3) complete offer for servicing garages, i.e. so called “one stop shop concept”, offering wide range of advantages starting with attractive trade conditions, investment programmes, up to transfer of technical knowledge used in car manufacturing. We are concentrating on increasing the sales and share in the market, at the same time trying to keep the margin on the highest level, higher than market average, instead offering our customers added values. Added values for customers are: Motointegrator, Fleet and training, investment programmes, financial programmes, etc.;
4) the widest product range on the market, comparing to competition: spare parts and other products, such as: oils, garage equipment, tyres, accessories, batteries, which distribution has been dominated by specialists’ stores;
5) increase of number of Customers transferred to garages by Motointegrator webpage, in October the number of redirected Customers reached 13 thousand;
6) taking over a part of sales revenues of the biggest competitor, who for some time now has been facing difficulties and fall in business profitability and keeping bank financing.

 

In III quarter sales revenues of our company rose twice faster than the market, this way we have increased our market share to about 22-23%. As regards the market, we estimate the increase on the level of about 7-8%. We can still see quite a lot of customers in garages. So looking at the 4th quarter and taking into consideration record revenues in October, which reached PLN 306m. (that is an increase by 19.3%) we are expecting that in the next quarter results will be also satisfactory.

We think that this positive trend which is connected with big numbers of customers in garages can continue through 1Q 2014. The turnover for 2013 is estimated to have reached USD 1bn.

As regards projects, our operations are currently concentrating on creation of regional distribution centres, developing order collection, Motointegrator and cooperation with Mekonomen company.
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Piotr Zamora said:
The results for 3Q 2013 were reaching record levels as regards revenues and profits.
We are the biggest beneficiary of good market trend in the industry because of efficient logistic system, product range and availability. Thanks to these advantages we are able to react flexibly to increased demand and keep the parameters of customer service.
 

We also improved the profit margin on sold goods by 27%; it is an increase from PLN 239m up to PLN 303m in the 3Q 2013, at growth of revenue by 19%. Cumulatively for the 9 months we improved the margin by 19% and increased revenues by 16%.

Working Capital in comparison to sales increased from 86 days up to 93 days in the 9 months 2013 YoY. The cause of increase of Working Capital may be seen in increased availability of goods in branches in order to keep the goods closer to customers. This in turn resulted in increased rotation factor and increase of payables for commercial goods settled in the form of offset.
 

The effect of our activities is improvement of net profit by 117.1% - in 3rd quarter 2013 profit reached PLN 50m. in three quarters of 2013 the Group recorded sales revenues of PLN 2,573m and net profit of PLN 112m.
 

Our strategy as regards development of foreign subsidiaries has not changed. We wish to keep developing in Central Europe, as markets in this region have much higher growth potential, taking into consideration the expenditure necessary to enter this markets. Next year the number of branches will exceed 300, as of the end of third quarter 2013 we had 290 domestic and foreign branches. Next year, in every town with population above 30,000 people we will have a branch.
 

We want to emphasise that sales results abroad are mostly thanks to development of distribution and branch chain and development of new segments, such as: spare parts for trucks, garage equipment, private brands.

 

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