Autowallis Reports Excellent Results

The AutoWallis Group closed another record year in 2022 despite another external environment full of challenges last year. The automotive company registered on the Hungarian stock exchange achieved revenue of HUF 270 billion with an EBITDA of HUF 14.5 billion and earnings per share surpassing HUF 19.

The growth was primarily organic and exceeded even industry trends, meaning AutoWallis continued down a path of stable growth, already exceeding a number of financial targets previously set for 2025.

Regarding the results, AutoWallis Group Chairman Zsolt Müllner explained that this was the fourth record year in a row the since the company went public in 2019 even though the business environment was far from without its challenges. However, recent years have shown that the growth strategy announced when the company was listed and then amended with higher figures in 2021 is so crisis-proof that a number of points have since been exceeded on a pro rata basis.

He emphasized that the AutoWallis Group’s capital strength, diversified operations, and presence in the region allows it to continue stable growth as a market consolidator while its revenue may exceed HUF 400 billion by 2025 even without further acquisitions and with increasing efficiency, making it a major vehicle trading company and mobility service provider in the Central and Eastern European region by the end of the decade.

AutoWallis’s revenue grew by almost 40% to reach HUF 270 billion (+39%) in 2022, primarily due to organic growth (the sales of the Slovenian company Avto Aktiv contributed to transaction figures starting from 2022 Q2). The Group saw its revenue increase to HUF 158.9 billion (+43%) in its Distribution Business Unit and to HUF 111.2 billion (+32%) in its Retail & Services Business Unit.

However, for its shareholders, it is even more significant that the revenue increase was due to a substantial improvement in efficiency: margin generation jumped from 14.1 to 16.7% while the cost of goods sold (CoGS) experienced growth slightly less than that seen by revenue, equal to 34% and reaching HUF 224.9 billion.

The positive change is backed by the fact that AutoWallis Group was, in line with industry trends, able to enforce a successful pricing policy even in an environment of high inflation both in the purchasing and the sale of new and used cars. The 56% increase in personnel expenses was primarily a result of the acquisitions implemented in 2021 and 2022 and the resulting increase in average employee numbers (which grew by 165 persons

to reach 860 in 2022) and the wage increases carried out in following labor market changes.

In 2022, the value of financial gains or losses was HUF -953 million, which is an improvement of 35% over the previous year, due mainly to the increases in the interest environment and the unrealized exchange rate losses stemming from the year-end revaluation.