Inter Cars on the road

Inter Cars is a company that we mention last time about in October. Today it is time to look at the company more in details, looking at results for the last three years.

We need to remind that Inter Cars is a distribution company dealing in automotive spare parts for passenger cars, commercial vehicles and trucks. It is – as it declares – the biggest company of this kind in Central and Eastern Europe. Here we can mention that consolidated assets of Inter Cars as of the end of September were equal PLN 1.856bn, with only 24% were fixed assets.

The product range includes not only spare parts for cars, but also Triumph and Ducati motorcycles (and parts for motorcycles). The company also runs two manufacturing plants (Lauber and Feber), the first remanufacture automotive spare parts and the later manufactures trailers and semitrailers. Inter Cars also runs a nationwide chain of repair garages.

In general Inter Cars runs a wide capital Group which include (according to last interim report) 22 directly dependent companies (all in 100% controlled by IC) and one indirectly controlled company and one associated company. The companies operate not only in Poland, but also in Germany, Bulgaria, Romania, Croatia, Ukraine, Latvia and other countries.

The shareholders of Inter Cars as regards the biggest investors:



As we can see, the free float is over 29 per cent of shares. We need to add that Krzysztof Oleksowicz is a founder of the company (is also a Member of the Board), Andrzej Oliszewski is the president of the Supervisory Board. The CEO is Robert Kierzek.

Below you can find consolidated results of Inter Cars for 2008 – 2012:





As you can see, in the time period, the highest net profitability and operating profitability was recorded in 2011, and the highest EBITDA profitability in 2009. The average profit margins for the last five years were around 6.54 per cent. (EBITDA), 5.15 per cent. (operating) and 2.9% (net). Each year brought profits. Sales revenues were systematically growing and everything shows that the same situation was in 2013 (we will talk about this later on).

The average ROE and ROA for analysed period were respectively 15.59% and 5.61%. (profit for a year was compared to balance sheet positions for the previous one). Current assets to current liabilities is not high (once it was 25% in 2011, other years less than 10%), but this is the feature of each company which deals in trading with lots of goods. Equity capital is not much less lower than liabilities, but the factor stays on a safe level and year by year is getting better.

Below you can find the results for the period of between 1st Jan and 30th Sept, in 2013 as well as in 2012.



Sales revenues went up on a yearly basis by over 16 per cent, profits went up substantially and this increased profitability of the company. Only in 3rd quarter the sales went up by 18.8 per cent YoY, export by 22%. In 3Q domestic revenues were 65 per cent of total turnover.

Shares of Inter Cars are highly priced by investors on Warsaw Stock Exchange. A year ago they were paid around PLN 80 – 90, whereas at the end of November 2013 - close to PLN 215. Later there was a correction, and currently the situation is not stable. It is possible that there will be a final trend breakthrough – today the share price was PLN 179.10 (a decrease of 2.13%). Another support level is at PLN 170, in the area of PLN 157-160 and at PLN 149.50.





The Company has just presented information regarding the sales revenues of the Group in December 2013. The sales revenues of distribution companies went up to PLN 263.3m (an increase of 22% yoy), cumulatively it was PLN 3.47bn (an increase by 17.8%).

Adam Witczak

source: www.finweb.pl
08-01.2014