Shares of the distributor of spare parts for cars became very interesting for investors on Friday. Inter Cars Shares went up by almost 4% at big volume. This was the reaction on financial results for the H1 which turned out to be much better than expected by analysts. The profit of the company in the second quarter amounted to PLN 52.2m, an increase of almost 30 percent in comparison to the same period a year ago. Operating profit went up to PLN 66.0m, an increase of over 25%. Sales revenues of Inter Cars Group reached PLN 980m, an increase by 4 percent yty.
The result is mainly thanks to increasing sales of distribution companies on domestic market, as well as in foreign daughters which are operating on several foreign markets of the region. Their sales revenue (outside Poland) for the period of between January and June went up by 24 percent in comparison to the same period a year ago. Daughter companies in Latvia, Hungary and Bulgaria had the biggest increase of sales revenues. Among ten subsidiaries operating outside the country, only Ukraine recorded a single-digit decrease in revenues, which is a result of political situation in the region and weaker local currency.
- Second quarter was very good for Inter Cars, the company improved profit margins on sale, and at the same time kept the costs under control, what allowed much improvement of profits. Income dynamics is slowing down, as was expected and results from high base, because in previous periods the company was increasing sales abruptly - said Marta Dancewicz, analysts of Noble Securities. - In a yearly comparison we are expecting a few percent growth of sales generated mostly on foreign markets. Similarly, but maybe a bit slower, sales revenues should be growing the following year. At the same time the situation in Ukraine is influencing the sales results, as from the beginning of February, in every consecutive month the sales is decreasing there in a YtY basis. The situation of that market depends mostly in geopolitical situation and currency exchange rates - added the specialist.
Krzysztof Kozieł, analysts of BM BGZ points out that profitability of company's business is growing. - Despite decrease in sales dynamics we can see a substantial growth in gross margin on sales, which is mainly caused by changes in product mix, going towards products which generate higher margin, better trade terms gained from suppliers and growing share of export in total consolidated revenues, that is why we are quite optimistic about realization of forecast for 2014 - argues the expert.
source: Parkiet
30-08-2014
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