Expansion to growing markets of Europe made the company independent from the situation on Polish market.
| The share price of the distributor of automotive aftermarket spare parts rocketed since the beginning of the year by over PLN 130 – from PLN 84 up to PLN 195, reaching history high price of Inter Cars on Warsaw Stock Exchange. This increase brings also big expectations of investors regarding improvement of generated results. Shares of Inter Cars are listed with quite a big bonus. The ratios seem to confirm this: P/E reaches 24 and P/BV 3.3 – can the Board meet market expectations? | |
Better results abroad
The biggest automotive aftermarket spare parts distributor, despite difficult market conditions, made Investors accustomed to systematic improvement of generated financial results. This year growth dynamics of sales and profit is much better. For the first nine months total revenue of Inter Cars went up by almost 16%, to PLN 2.53 billion. The result is mainly thanks to increasing sales in foreign daughters which are operating on several foreign markets of the region. Their sales revenue in the period between January to September went up by 26.2% in comparison to previous year, whereas domestic sales went up only by 14.4%. Sales on Polish market is two thirds of total revenue of the Group, but this share is constantly decreasing. - The decision about expansion to developing markets in Europe caused that even in time of market slump we are able to generate strong increases. Thanks to increase in revenue in foreign daughter companies we become independent from economic situation of Polish market. We expect that till 2017 sales revenue of foreign branches will account to 50 per cent of the revenue of the Group – said Robert Kierzek, CEO of Inter Cars.
The Board aims a record
As regards generated result, the first half a year of 2013 was a very good period for Inter Cars.
| | Financial results were supported by a dynamic increase in sales and growing demand for automotive spare parts on domestic market. Bankruptcy of Fota S.A. – a major market player – as a result of which its customers were forced to turn to other distributors was also helpful. Taking into consideration the announcements of the Board and forecasts of analysts, the second half a year should be good for the Company, and the whole 2013 seems to be a record year as regards sales revenue and profits (the report for 3Q will be published on 14th November). |
The Company wants to keep a two-digit sales growth in the second half a year. It also expects profit margin increase on domestic market. In the nearest future, an increase of profitability of foreign daughters is expected, which is to be as a result of lower and lower logistic costs. In the whole 2013, the Board of Inter Cars expects to cross the amount of PLN 3.4b on sales revenue. In 2012 the company generated PLN 3b in revenues.
The analysts notice a potential
The forecast of Brokerage House IDMSA shows that in 2013 Inter Cars S.A. will work out PLN 146 million of net profit in comparison to 100 million a year ago. Operating profit in this time will grow up to PLN 199 million in comparison to PLN 146.3 million in 2012, and sales revenue up to PLN 3.4 billion from PLN 3 billion a year ago. A substantial increase this year is also expected by Krzysztof Kuper, analyst of Ipopema Securities. His preliminary estimation shows that the Company may generate a net profit of over PLN 145m and PLN 200m of operating profit at sales revenues of just about PLN 3.5b.
- The future seems to be bright for the next few years. The sales of automotive spare parts in the country is stable, and we can still se some potential, as the number of cars in Poland should be growing in the next few years – says an expert from Ipopema Securities.
The analyst also points that as the time goes by and “generation changes” in motor vehicles take place, the level of technical advancement of the cars also grows, and this influences the cost of individual parts needed for repairs. - Inter Cars has the most effective logistic system, thanks to this almost no-one is able to compete with IC as regards product range and availability and delivery times of parts. Moreover the Company develops dynamically in Central and Eastern Europe, where very often it is a leading distributor. This gives the Company a leading position in the whole region – adds Krzysztof Kuper.
source: Parkiet
Warsaw
30-10-2013
DZ. / No 253