AutoWallis reported a 142 percent increase in revenue and a 188 percent increase in EBITDA in its first quarter management report. Despite the adverse impact of the third wave of the coronavirus pandemic, both the distribution and retail & services business units of the listed automotive company demonstrated significant growth. The growth surpassing the targets set in the strategy published in 2019 can be attributed to both the transactions completed last year and organic growth.
With dynamically growing operating efficiency, AutoWallis Plc. increased its revenue nearly two and a half times to HUF 48.7 billion in the first quarter of 2021 compared to the first quarter of last year. This growth rate is particularly striking in light of the fact that while the EU passenger vehicle market saw only a 3.2 percent increase in sales during this period, and the Hungarian market experienced a 1.5 percent decrease, the AutoWallis Group recorded a 228 percent increase in the number of units sold in Hungary. This outstanding performance is driven by organic growth and the impact of last year's transactions. The numbers show that the listed automotive company has overcome most of the negative effects of the coronavirus epidemic.
Both divisions of the company listed in the Premium category of the Budapest Stock Exchange performed exceptionally well. The revenue of the AutoWallis Group’s Distribution Business Unit increased by 165 percent to HUF 28.1 billion, mainly due to the launch of Opel sales in four countries at the beginning of this year. The Retail & Services Business Unit’s revenue grew by 115 percent to HUF 20.6 billion, thanks to organic growth, as well as the acquisitions and transactions completed last year. In addition to the positive vehicle sales figures, there was also an increase in vehicle rentals this year, with the number of rental days increasing by 43 percent to 30,320. There was also an increase in service activity, which had previously been temporarily reduced due to the restrictions and lockdowns related to the epidemic: in addition to last year’s acquisitions, organic growth led to an increase in the total number of service hours by 153 percent to 29,447.
The first quarter was a period of increasing efficiency for the AutoWallis Group, with revenue growth outpacing the increase in the cost of goods sold (CoGS), resulting in the company's margin production growing from 10.2 percent to 12 percent in the first three months of the year. The 195 percent increase in personnel expenses is the result of the transactions carried out last year, which increased the average statistical headcount of the AutoWallis Group by 330 to 662. Financial gains or losses decreased by 79 percent to HUF 149 million, partly due to a reduction in the partially accounting exchange loss. At the same time, in addition to the favorable exchange rate effect, interest expenses slightly increased, mainly due to the financing of transactions carried out last year. As a result, the EBITDA, which AutoWallis’s management considers to be the best indicator of profitability, increased by 188 percent to HUF 1.5 billion, while the total comprehensive income was a profit of HUF 406 million, compared to a loss of HUF 582 million in the previous year. Gábor Ormosy, CEO of AutoWallis, said that the significant increase in earnings could be contributed to the acquisitions and organic growth in line with the growth strategy, the improved margin generation, as well as the disciplined cost management. Regarding the prospects, the CEO said that the company anticipated a revenue of HUF 230-253 billion and an EBITDA of HUF 5.7-6.3 billion for the year 2021.