Inter Cars wants to keep the pace of growth in the country and abroad this year (interview)

"This year we are expecting sale increase of around 15 percent. Our strategy in the country assumes that just like in 2015, also this year we shall be growing faster than the market in passenger cars segment, but most of all in trucks, where we are expecting the highest growths. In tyre segment the increase will be rather more organic and we are not expecting any shocking results there, as we could see in previous year" - said Director Zamora to PAP.

He also added that the Board of Inter Cars wants the sale to increase the year 2020 to the level of around PLN 10bn.
The Group also counts on keeping the level of profitability in 2016. 

"Previous year we adjusted the prices of some of the products to the market.  That is why we are counting on keeping the profitability on the same level in 20216 as a year before. Our priority shall still remain the market share" - explained Director.
In 2015 sales revenues of distribution subsidiaries of Inter Cars went up by 21.5 percent, to PLN 4.74bn. The sale of goods increased by 15.3 per cent, to PLN 2.83bn – abroad by 38 per cent – to PLN 1.58bn.

"In 2015 we managed to develop our product range for heavy goods vehicles, and in order to sell, we are using our well developed distribution chain - in a nut shell, we are going similar way we had in passenger cars segment" - explained Zamora.
This year Inter Cars wants to open around 30 new branches in Poland, in bigger and in smaller towns as well.  They are to be launched in the places where the company can see high growth potential - informed Zamora.

THE RATE OF GROWTH ABROAD TO BE KEPT 
"Abroad we are counting on a growth by around 35 per cent, just like this year  This is an average growth, as we have countries where it is much higher, such as e.g. Hungary” - said Zamora.

"Generally in 2016 growth abroad shall be the result of further development of distribution chain and product range. Whilst in some countries we are additionally planning to concentrate on improvement of profitability of some of the outlets, branches, which is necessary for further chain development" - he added.

Currently Inter Cars runs 184 foreign branches. Finally the group wants to operate only by franchise outlets, but meanwhile there are some foreign locations that are run directly by the Group companies.
The company is rather not planning to enter other markets soon.
 

"There are countries in the region where we might start our activity, but taking into consideration dynamic development of the business in the countries we are now, we should concentrate mainly on them" - explained CFO of the Group.
Inter Cars currently operates via subsidiaries in Slovakia, Ukraine, Hungary, Lithuania, Latvia, Slovenia, Czech Republic, Croatia, Romania, Bulgaria, Estonia and in Italy.

According to the director the devaluation of Polish zloty has no negative influence for the company.
"We are protected from the currency risk by the fact that we are paying for the goods mostly before they are due (cash discount), and additionally our sales is much fragmented and delayed in time" - he added.

LOGISTICS CENTRE SHALL BE LAUNCHED IN FEBRUARY 2017 AT THE LATEST
Inter Cars corrected a bit its schedule of constructing the logistics centre in Zakroczym. The launch date has been postponed by two months. 

"According to new schedule we are planing to open the logistics centre by February 2017 at the latest. The schedule needed to be corrected because of problems of one of subcontractors.  The problem is now solved, but the schedule had to be changed" - Zamora told PAP.

The premises in Zakroczym (nearby Warszawa Modlin airport) are to have around 40 thousand sqm of storage area.
Because of further investment spendings (by now the Group has spent on the investment in Zakroczym around a half of the planned PLN 150m) and dynamic development of the company, the dividend for 2016 should be "symbolic" - said Zamora.
"Currently we have return on own capital on the level of around 15 per cent, what seems to be quite a good result in the industry. Additionally a higher pay would increase our debt ratio.  Net debt to EBITDA, as at the end of September went up to the level of 2.38 because of higher demand for working capital for the expansion” - he explained. 

Dividend policy of Inter Cars assumes recommendation of payment lower than 60% of consolidated net profit for the years 2014-2016.  (PAP).
 

Source: biznes.pap.pl

2016-02-02