AutoWallis has reported strong results for the past nine months: the EBITDA of the corporation exceeded HUF 5.7 billion, meaning that the listed automotive company is likely to surpass its yearly plan of HUF 5.5-6.2 billion.
The Group generated a revenue of HUF 145.4 billion in the first nine months of the year, with its margin production having grown by nearly 10%, and its EBITDA margin having increased from 3 to 3.9%, according to a press release by the company.
Having closed a strong quarter, the AutoWallis Group is progressing towards achieving the goals outlined in its strategy: the listed automotive company generated a revenue of HUF 145.4 billion in the first three quarters of the year, more than doubling its previous performance by realizing a 132% increase compared to the same period a year earlier.
Both business units of the Group contributed to the growth, despite the economic environment having been adversely impacted by the repeated introduction of restrictions in response to the succeeding waves of the coronavirus pandemic, the slowing down of automotive production and supply due to the shortage of chips, as well as the sluggish recovery of the tourism sector.
AutoWallis’s growth was significantly higher than that of the EU or the regional automotive market: the passenger vehicle market expanded by 6.6% in the EU and by 10.8% in Central Eastern Europe, which is the market relevant for the AutoWallis Group. In contrast, the corporation increased its new vehicle sales almost fourfold (by 271%) to 17,587 units, with transactions and acquisitions completed in 2020 accounting for 231 percentage points and organic growth making up 40 percentage points of the increase. The latter figure is in itself several times the average market growth in the region.
Gábor Ormosy, the CEO of AutoWallis, highlighted in this respect that the volume of vehicle orders gives reason for optimism concerning vehicle sales; however, the temporary or longer-term disruptions in chip supplies affecting certain brands may negatively influence the anticipated sales numbers, i.e., the number of cars actually delivered in the coming period. The CEO pointed out that the earnings and the efficiency of the company rose even faster than its revenue: the EBITDA, which AutoWallis’s management considers to be the best indicator of profitability, surged more than three-fold (+201%) to HUF 5.7 billion.
The positive trend is underscored by the Group having increased its margin production by ten percent, from 12.3 to 13.4%. This is primarily due to the fact that AutoWallis managed to implement a successful and efficient pricing policy, taking into account market demands and price sensitivity, both in its procurements and in its sales.
As a result of these effects, the Group’s total comprehensive income was a profit of HUF 2.2 billion, compared to the loss reported last year, while the earnings per share (EPS) stood at HUF 6.43. In its latest profit forecast for the year, the corporation predicted a revenue between HUF 191-212 billion and an EBITDA between HUF 5.5-6.2 billion. Due to the fourth wave of the Covid-19 pandemic and the shortage of chips, delays in production times will lead to deferred vehicle deliveries despite the high volume of orders, as a result of which the annual revenue will remain below HUF 190 billion; nonetheless, the corporation expects a continuing increase in its margin production capacity and profitability, which will enable it to achieve an EBITDA of about HUF 6 billion.
Leave a Reply Cancel reply
Top 5 Articles
- Sharing Business Experience December 10, 2022
- Hungarian Inflation Rate - the Highest in Europe December 16, 2022
- Another Korean Battery Supplier Appears in Hungary November 17, 2022
- In Strategic Partnership with the Client January 2, 2023
- Mobility is Electric for ŠKODA December 6, 2022
Articles by Date
- ► 2023 (317)
- ► 2022 (1249)
- ► 2021 (941)
- ► 2020 (899)
- ► 2019 (237)
- ► 2018 (161)
- ► 2017 (310)
- ► 2016 (279)
- ► 2015 (324)
- ► 2014 (229)
- ► 2013 (233)
- ► 2012 (250)
- ► 2011 (303)
- ► 2010 (167)
- ► 2009 (43)
- ► 2008 (3)
No comment yet. Be the first!