Inter Cars (CAR) Q3 2024 earnings summary

Executive summary

• Achieved 7.6% sales growth in PLN and 14.5% in EUR for the first three quarters of 2024, outpacing most European competitors.

• Opened 34 new foreign subsidiaries in the last 12 months, strengthening overseas expansion.

• Domestic market (Poland) remains the largest, accounting for 40% of total revenue.

• The most dynamic sales growth was seen in Serbia (+49%), Greece (+21.6%), Bosnia (+21.1%), Moldova (+17.5%), and Slovenia (+16%).

• Market consolidation and digital transformation are key strategic focuses.

Financial highlights

• Consolidated sales revenue reached PLN 14,317.8 million for the first three quarters of 2024, up from PLN 13,301.7 million year-over-year.

• Net profit was PLN 552.8 million, a 5% decrease compared to the same period last year.

• Gross margin for the period was 29.3%, down 0.3 percentage points year-over-year.

• EBITDA margin: 6.6% (down from 7.39% year-over-year).

• Inventory turnover ratio improved to 137 days, two days better than Q3 2023.

Outlook and guidance

• Positive outlook for 2025 with expectations of further sales growth and margin improvement.

• No major improvement in working capital expected for 2025 due to growth ambitions.

• Management expects inflation, labor costs, fuel, energy, and interest rates to impact Q4 2024 results.

• Exchange rate trends, cost optimization, and logistics improvements are key focus areas for maintaining profitability.

• No official financial forecasts were published for 2024.