Despite effective improvement of results for 2013, analysts expect further growth this year. Nevertheless current dynamics is impossible to be continued.

The distributor of automotive spare parts had a record year as regards sales revenues and profits. Double figure growth is possible to be kept also this year. During Tuesday’s quotation the shares of the distributor of automotive spare parts reached another record, getting close to the price level of PLN 220.00. Increased demand for shares of the company can be seen starting from January, thanks to this the share price came back to an increasing trend after a month correction. During the last month it was possible to earn almost 20 per cent on the shares on the company.

Good beginning of the year

The increase goes together with expectations of investors for further improvement and growth. The distributor started the year very well, in January recording over 25 per cent growth YoY. - The company published sales figures for January and they show high increase YoY. I suppose that February and March will also be much better for the company than last year. This means that probably 1Q 2014 should be a successful one for the Company. Whereas in the following quarters the sales should be levelling off – says Sylwia Jaśkiewicz, analyst from IDMSA BH. 

A record is coming

Inter Cars SA has not yet published the results for the last quarter of 2013 (the report will be published on 28th February). Analysts expect the Company to record a double figure increase of sales revenues and profits, just like in previous quarters. Forecasts of brokerage houses put together by “Parkiet” magazine show that, in Q4 2013 net profit of Inter Cars increased by almost 40% to PLN 39.7m, operating profit by 39 per cent, up to PLN 52.2m, sales revenues by 21 per cent, up to PLN 950m YoY. In the whole year 2013 the Company might have generated a net profit of PLN 150m, and sales revenues of PLN 3.5bn. The result is mainly thanks to increasing sales in foreign daughters which are operating on several markets of the region. Their sales revenues last year went up by 30 per cent in comparison to 2012, whereas domestic sales went up by 15 per cent.

Dynamics will fall

According to analysts, possibilities of the company has not yet come to an end, but taking into consideration last year results, the speed of increasing will be a bit slower. Grzegorz Kujawki, Analyst of Trigon BH estimates that the distributor shall increase its domestic sales revenues by 10% and its foreign sales revenues by 20% this year. - Inter Cars strengthens its position of market leader in distribution of spare parts for aftermarket independent garages in the region. Stronger position of the Group on its domestic market is a result of consistent development of its product range, opening new branches and tightening relations with branch owners. Financial problems of Fota company are not with no effect, as Inter Cars took over a large part of its market. This year net profit is supposed to increase to PLN 180.6 million and operational profit to PLN 237.2 million, sales revenue up to PLN 4 billion.

source: Parkiet
No. 35 
12-02-2014
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