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, driven by strong international growth and expansion across 18 countries.

• Net profit for H1 2024 was PLN 345.5 million, a 3% decline year-over-year, mainly due to negative exchange rate impacts; Q2 net profit increased by PLN 34 million year-over-year.

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

• The company maintains leading market positions in Central and Eastern Europe for passenger and commercial vehicle parts, with a comprehensive ecosystem including distribution, logistics, and specialized business segments.

• Domestic revenue accounted for approximately 40% of total revenue, with foreign subsidiaries contributing PLN 4.8 billion, up 8.5% year-over-year.

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

• Gross profit on sales: PLN 2.73 billion, up nearly 7% year-over-year.

• EBITDA for the trailing 12 months was PLN 1.21 billion, down PLN 88.7 million year-over-year.

• Operating cash flow improved to PLN 334.5 million from PLN 106.3 million in H1 2023.

Outlook and guidance

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

• Ongoing investment in logistics, warehouse modernization, and automation to support future growth, including a fully robotic warehouse in Poland by September/October 2024 and a larger automated warehouse in Romania planned for Q3/Q4 2025.

• Management expects inflation, wage pressures, fuel and energy costs, interest rate changes, and currency fluctuations to impact Q3 2024 results.

• No financial forecasts were published for 2024.