Inter Cars kept sales in December on a high level

Distributor of automotive spare does not slow down. The Group closed December and the whole last year with a two figure increase of sales. On the other hand the share price slowed down and is stopping for several weeks.

In December 2013 the sales of Inter Cars Capital Group went up by 22.5 per cent YTD reaching PLN 268.8m. The separate result went up by 23.7 per cent reaching PLN 233.4m. Foreign distribution companies reached a revenue of PLN 67.9m, an increase of 27.5 per cent. Italy recorded the highest increase in sales (+174.8 per cent YTD), but on the other hand the market had the lowest comparative level. Once again Bulgaria recorded a three-digit increase of 131.8 per cent. Cumulatively from the beginning of the year the sales revenues of Capital Group after consolidation exclusions amounted to PLN 3.47bn, (an increase of 17.8%). In the whole year the fastest growing was before mentioned Bulgaria with +222.3%.

After first three quarters the Group recorded a sales revenue of PLN 2.57bn and a profit of PLN 111.6m as compared to a year before respectively PLN 2.22bn and 71.4m. In this period cash flow from operating activities went down from PLN 102.1m to PLN 83.5m. Only in 3rd quarter the company recorded revenues of PLN 945m (+19%) and PLN 50m profit (+118%).

Reaching good results allowed the price of shares of Inter Cars to reach history high levels. The price started with just above PLN 80 and reached over PLN 210. But since December we can see a several per cent correction on the share price. The fall was recorded at the same time when sell order was placed by ERSTE analysts with a target price of PLN 180. It is worth noticing that it was first for many months negative recommendation for the shares of automotive spare parts distributor. The office argued than that the results of Inter Cars are already taken into consideration in share price. The analysts also paid attention to large debt of the company and high demand for working capital, which in the future might make it difficult to pay the dividend. ERSTE forecasts that in the whole 2013 Inter Cars reached net profit of PLN 159.14m from sales revenues of PLN 3.51bn. For 2014 the forecast is respectively PLN 198.7m from PLN 4.22bn.



source: www.wiadomosci.stockwatch.pl 08-01-2014