AutoWallis Group, present in 14 countries in the region, closed the first quarter with growth that far exceeded the market average and an exceptional improvement in efficiency. The Group’s net earnings increased more than five-fold to HUF 1.9 billion, its EBITDA more than doubled to HUF 3.1 billion, and its revenue increased by 18%. This growth was organic only, driven mainly by the expansion of the Distribution Business Unit.
Despite the challenges faced by the industry, the AutoWallis Group closed a very strong first quarter. “The excellent performance is driven exclusively by organic growth, with the significant expansion of the Distribution Business Unit standing out,” AutoWallis CEO Gábor Ormosy said, evaluating the results.
He added that the operational efficiency of both of the Group’s business units showed significant improvement, meaning the company’s results reached new heights in all respects. The CEO went on to explain that the difficulties faced by markets, thus including the automotive industry (raw material shortages, supply disruptions, increased delivery times), were accompanied by an increase in sales margins; however, it is impossible to forecast the long-term sustainability of the latter. Gábor Ormosy pointed out that in the first quarter, the Group achieved almost two thirds of last year’s profit, while the company has already performed 40% of the value of last year’s total EBITDA, i.e. its earnings before interest, taxes, depreciation, and amortization, which the management considers to be the best indicator of profitability.
A report by the company says AutoWallis’s revenue grew by 18% to HUF 57.7 billion in the first quarter, even though EU markets experienced a downturn of 12.4%. The increase in the operational efficiency of the company listed in the Premium category of the Budapest Stock Exchange is clearly illustrated by the fact that the number of vehicles it sold in this same period showed a slower rate of increase of 11%, totaling 7,410 vehicles.
The growth was entirely organic, as all previous transactions had already been closed in the base quarter. Of the Group’s two business units, the Distribution Business Unit performed better (primarily thanks to the SsangYong and Isuzu brands): revenue increased by 32% in this segment but experienced only slight growth in the Retail & Services Business Unit.
The combined strength of the brands represented and sold by the Group and the diversification of the brand range is illustrated by the fact that the Hungarian passenger vehicle market experienced
a slowdown of 11%.
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