Inter Cars shone with results

Published before the session report for H1 was very well accepted by investors.  The biggest Polish distributor of automotive spare parts has announced further substantial growth of revenues. As a result its share price went up by over 2%. 

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 66.9m, 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.

In the whole 1H 2014 the Company generated a consolidated net profit amounting to PLN 85.7m, in comparison to PLN 61.5m profit for the same period a year ago, at sales revenues of PLN 1.85bn this year, from PLN 1.63bn a year before.

source: www.parkiet.com
29-08-2014