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We do not hide our contentment with the results. We manage to grow sales and improve profitability at the same time, profit grows faster than costs. Market trends help us to gain this results, but it is a fact that we are growing twice faster than the market. Being the leader also helps us. We build a belief that we have the widest offer on the market and that customers shall wait the shortest time for goods ordered from us. This works, we do not have to take part in price wars, although thanks to our position in the market and conditions negotiated with our suppliers we are also price competitive.
In 2009 the company crossed the level of 2 billion of sales revenue, a year later sales revenue was 2.41 billion PLN. How will this year end?
After half a year you have 1.3 billion PLN in consolidated sales revenue, there are rumours in the market that you might end the year with sales revenue reaching around 3 billion PLN. Our internal forecast is that we might end the year with around 2.8 billion PLN sales revenue. But I would not stick to this number to strong. Much depends on how winter season is going to look like, shall the weather be favourable for us, will it stimulate e.g. sales of winter tyres. Previous years showed that despite unstable economic situation, individual car users do not stop using their vehicles, but use them in the same extend as in the past. We cannot exclude a situation when high fuel prices will finally change habits of Polish people, and this in turn will influence growth dynamics in sales of automotive spare parts.
If we managed to close the year with 2.8 billion PLN sales revenue and net margin remained on the same level, the net profit of the company would be around 100 million PLN. What will the company do with the profit?
We are considering many possibilities. Shall it be the will of shareholders, we can get back to paying out dividend from the profit. We can also keep the profit in the company, changing the structure of financing current operations, limiting this way cost of financing. Decision will be taken after the end of the year, now it is too early to declare anything in this matter.
Analysing the results of the Group, it is impossible not to notice that sales of foreign daughter companies is growing faster. Will the strategy of Inter Cars be changed because of this fact, will Inter Cars appear on new markets faster now?
We are happy with development of our daughters abroad, all the time we are investing in their development. In order to improve sales in the South of Europe, lately we have opened new warehouses in Zagreb and in Brasov on the south of Romania. At the beginning of the year we also started operations in Latvia, and several weeks ago in Bulgaria. We are also looking at other Middle-Eastern European markets. In former Yugoslavia countries, today we are operating only in Croatia, that is why we are observing situation in Serbia and in Slovenia. Currently we are focusing on development of already existing branches, which still have a lot to do.
In last interview for “Parkiet” you excluded possibility of taking over big competitors, at the same time pointing that the company might be interested in buying some smaller businesses, specialists, which could complete current offer of the company. Some days ago, Inter Cars together with Liberty Motors bought 85% of shares in national company Polmozbyt in Łódź, which deals in repairing cars. It is quite an unexpected direction of development.
Inter Cars does not intend to build its own garage chain, shares in Polmozbyt is a part of strategy of supporting local partners of the group, in this case Liberty Motors. Taking over Polmozbyt can be treated as a short-term investment – the company will be restructured and adapted to current market conditions, Inter Cars will benefit by gaining a new customer.
Last weak ling in Inter Cars Group is Feber, manufacturer of semitrailers for trucks. In I half a year sales was increased by 61%, to 38.9 million PLN, but will the company manage to close the year with a profit?
This is our plan. A year has passed since Witold Kmieciak became CEO of Feber, and his work gave optimistic results. Production costs were limited, by e.g. renegotiating contracts with suppliers, simplifying production procedures, limiting number of models and producing longer series of trailers instead. Though situation in construction industry is not the best, we are pleased with development of the segment of renting tippers for transporting aggregate. Not long ago we have started cooperation with Italian Cometto and French Legras as their distributors. Both companies produce special vehicles, completing Feber’s offer. I believe that in 2012 Feber may not be the leader, but for sure it will be among strong businesses in the industry.
Thank you for the interview.
Parkiet DZ. / Nr 211
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