WOOD Flash – Inter Cars: 2Q19 results excluding one-offs slightly below expectations
Inter Cars reported its 2Q19 results today (4 September; the original date was 10 September).Its revenue was known already, from the monthly reports, and it was in line with both our and the market’s expectations, at PLN 2,243m for 2Q19, up 5% yoy. Gross profitability (ex.IFRS 16) was flat yoy, while the gross profit grew by 5% yoy (in line with the revenue). SG&A (ex.IFRS 16) was 9% higher yoy. The comparable EBIT arrived at PLN 89m (ex.IFRS 16), down 15% yoy. The EBIT included two main one-offs of c.PLN 10m: 1) related to the planned and ongoing restructuring in Italy, where the company has decided to close six branches and has provisioned PLN 8.6m for future costs; and 2) related to the incident at the Czechia warehouse, booking PLN 1.5m of additional costs. Without the one-offs, the comparable EBIT would be PLN 99m, or a 5% decline yoy. According to management, this would have been higher if adjusted by the FX of c.PLN 6m, but this still would mean flat profitability yoy vs. its earlier announced focus on margins.
Inter Cars is an automotive spare parts distributor for passenger cars, commercial vehicles and trucks in Middle-Eastern Europe. The product range of Co. reaches over one million different automotive spare parts for passenger cars and trucks. No matter if the car is European or Asian one, Co.'s customers can find full range of products for their cars as well as all the necessary tools and garage equipment. Besides spare parts distribution, which is the core business of Co., Co. is also an exclusive distributor of legendary motorcycle brand “TRIUMPH” in Poland (via motorcycle distribution network, called Inter Motors) and distributor of spare parts and accessories for other motorcycle brands.
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