AutoWallis - Q1/20 Solid Underlying Results Reflected Strength But COVID-19 Virus Is Reshaping The Earnings Outlook

• AutoWallis’s Q1/20 operating results were not yet materially affected by the steep economic downturn triggered by the outbreak of the coronavirus pandemic. Clean EBITDA increased by 35% YoY to HUF 667mn on sales revenue rising by 10% YoY to HUF 20.2bn. Domestic sales advanced by 21%, international sales by 1%, and revenue from its Automotive Services Business unit by 13% in value terms. Reported net losses came in at HUF 582mn negatively affected by FX and one-time losses (of HUF 581mn and HUF 158mn, respectively). Adjusting for FX and one-time losses, clean net income was HUF 157mn, compared to HUF 116mn in the same period a year earlier.
• In Q1/20 AutoWallis sold a total of 1,627 cars representing 16% growth YoY. Although the European passenger car market saw the number of newly registered units sold fall down drastically (-26% YoY), according to ACEA2 statistics, the CEE region where AutoWallis is distributing premium car brands still remained relatively strong.