Inter Cars (CAR) H1 2024 earnings summary

Executive summary

• Consolidated sales revenue reached PLN 9.4 billion in H1 2024, up 8% year-over-year in PLN and 15% in EUR, reflecting currency effects and strong international growth.

• Net profit for H1 2024 was PLN 345 million, a 3% decline year-over-year, mainly due to negative exchange rate impacts; adjusted for FX, net profit would have risen 2.5%.

• Organic growth outpaced key European competitors, with strong performance in passenger vehicles (+16%), trucks (+11%), and tires (+11%).

• The company continues to focus on B2B customers, especially independent workshops, which account for 74% of sales.

Financial highlights

• H1 2024 sales revenue: PLN 9.4 billion (PLN 8.67 billion in H1 2023), up 8% in PLN and 15% in EUR.

• Net profit: PLN 345 million, down 3% year-over-year; Q2 2024 net profit: PLN 189 million, up 23% year-over-year.

• Gross profit on sales: PLN 2.7 billion, up nearly 7% year-over-year.

• Gross margin for H1 2024: 28.6% (adjusted for FX), down from 29.8% in H1 2023.

• Sales and general management costs: 14.1% of sales, up 0.4 percentage points year-over-year.

Outlook and guidance

• Management maintains an ambitious plan to lower the cost-to-sales ratio for full-year 2024 compared to 2023.

• Cost adjustments and reductions are planned for H2 2024.

• Long-term outlook remains positive, with continued investment in logistics and automation to support future growth.

• The first fully robotic warehouse will be operational in Poland by September/October 2024; a larger automated warehouse in Romania is planned for Q3/Q4 2025.