Inter Cars (CAR) Q1 2025 earnings summary

Executive summary

• Consolidated sales revenue rose by 5.5% year-over-year in Q1 2025, with export sales up 11% and continued international expansion, especially in Central and Eastern Europe.

• Gross margin increased by 1.4 p.p. to 29.3%, and net profit remained stable at 157.7 million PLN compared to Q1 2024.

• EBITDA for the trailing 12 months reached 1.3 billion PLN, up 13% year-over-year, with a Net Debt/EBITDA ratio of 2.0.

• Inventory value increased by 435 million PLN to ensure product availability amid anticipated supplier price hikes.

• Ongoing investments in warehouse automation in Poland and Romania, with completion expected in 2025–2026.

Financial highlights

• Q1 2025 sales: 4.78 billion PLN (+5.5% y/y); gross profit: 1.4 billion PLN; net profit: 157.7 million PLN.

• EBITDA margin: 6.5% (vs. 6.0% in Q1 2024); gross margin: 29.3% (vs. 27.9%).

• Operating cash flow: 328 million PLN; investing cash flow: -81.7 million PLN; financing cash flow: -184 million PLN.

• Cash at period end: 525 million PLN; total assets: 11.36 billion PLN; equity: 5.24 billion PLN.

• No dividend paid in Q1; proposal to pay 1.42 PLN/share from 2024 profit, with payment scheduled for June 2025.

Outlook and guidance

• Key factors for Q2 2025: interest rate changes, geopolitical risks (Ukraine conflict), global trade tensions, FX volatility, cost optimization, and inventory rotation improvement.

• Focus on expanding brand recognition and customer acquisition to drive operational growth.