The half-year results of Inter Cars company were discussed at the end of August, whereas today we are presenting the results of the company for the third quarter, and also for the whole 9 consecutive months of 2014.
At this moment it is worth reminding what Inter Cars is dealing in. It is a brand that is well known among drivers, as the company (or more precisely a capital group) deals in distribution of a variety of spare parts for passenger cars, commercial vehicles and trucks. The company also sells Triumph and Ducati motorcycles.
As we can learn from the website of the company, Inter Cars currently has 153 branches in the country and also 106 branches in Europe. We are talking here about such countries as: Czech, Bulgaria, Ukraine, Romania, Hungary or Croatia. The board of Inter Cars thinks that the company currently :has the widest product range in Poland". The company also runs two manufacturing plants (Lauber sp. z o.o. and Feber sp. z o.o.), the first remanufactures automotive spare parts and the later manufactures trailers and semi-trailers. Inter Cars also owns a chain of around 1,000 repair garages operating under several brands (each brand on partly different rules).
The structure of shareholders of parent company is shown on the graph (Krzysztof Oleksowicz is one of the members of the management board, but the president is another person - Robert Kierzek).
Only the third quarter brought for the company PLN 997.13m. in sales revenues, before it was PLN 944.73m., an increase by 5.5 percent. The company also managed to generate EBITDA and net profit which were big enough to increase profitability (only slightly) - e.g. net margin went up from 5.30 percent to 5.64 percent. EBIT margin went down, but this correction was very low (a fall from 6.86 to 6.82 percent).
Cumulatively, from the beginning of the year the company reached a revenue of around PLN 2.85bn (in comparison to PLN 2.57bn a year ago), and operating profit of around PLN 179m with net profit PLN 142m. Corresponding margins are 6.27 percent (previously 5.88 percent) and 4.98 percent (4.34% a year ago). We can see that the company is generating high revenue with quite good growth, generates profits and generally is doing well.
Also the balance factors are positive. For example, the golden balance sheet rule is kept (the factor expressing it was lately at the level of 2.30 points.) the current ratio is also good (around 1.6 points), and total of liabilities do not exceed equity, or is bigger than equity but just a bit. As regards financial assets, at the end of Q3 the company (capital group) had more than PLN 60m of assets, i.e. 6% of value of current liabilities.
Current liabilities are dominating, whilst assets are also mostly current. The latter are mostly stock - only trade receivables were on the level of PLN 475m. and did not cover, even with cash assets, the current liabilities.
A minus of analysed nine-month period is the fact that net cash flows on operating activities were negative (PLN -40.38m.), whilst a year ago they were in plus (PLN 83.45m.).
Almost 2/3 of revenues of Inter Cars (in fact 64 percent) were the revenues generated in the country, the rest of them were generated abroad. Revenues abroad increased by 13.4 percent YoY. Generally, we can learn from the report, that revenues in all geographical areas went up, whilst the company is consequently realizing the policy of territorial expansion in the area of Middle and Eastern Europe. The biggest increase in sales was recorded in Latvia, Hungary and in Bulgaria.
It is also worth adding that in June this year Inter Cars paid PLN 10m. of dividend to the shareholders, i.e. PLN 0.71 per share.
The share price graph is showing a growing tendency, especially in the long term. At the beginning of 2013 the share price was at around PLN 85, and currently it is at the level of around PLN 220. Practically it is the resistance level, which has already been tested, and finally the maximum (from September) is even PLN 230. The support level is at PLN 200, PLN 191, a bit below PLN 187, at PLN 177. The STS factor generates the selling signal, which may be a forecast of a small correction.
Source: finweb. pl
2014-12-15
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