Sales up 
The company recorded its best ever result in sales revenue – in 2012 revenue increased by 9%, reaching the level of 3 billion PLN. This year seems to be similarly successful to the previous one, when talking about sales results. Within first 5 months the sales went up by 12%, to 1.3 billion PLN.

The result is mainly thanks to increasing sales in foreign daughters which are operating on several markets of Europe. Their revenue, January – May, went up by 22.5 percent Year-on-Year. Development of distribution chain outside Poland is supposed to make Inter Cars independent from domestic market changes.

The biggest potential among foreign branches is in Romania (the second, after Poland, most important market for the Company), but we also have hopes with Ukrainian market. We forecast the till 2017 sales revenue from foreign daughters will be a half of the revenue generated by the group on sales of automotive spare parts. We suppose that in whole 2013 domestic sales revenue will grow by at least 7% and we hope to keep at least 20% increase in foreign daughters.

Improvement of profitability is supposed to be generated by effective purchase programmes which will result in better discounts from suppliers. There are also works performed to improve logistic and stock management (inter alia we have separated our logistic operations into a new company – ILS LTD). In this case, increasing profitability is also the aim.

Despite expected this year fall in profit margin, caused by worse market situation, since the beginning of II quarter we are expecting gradual improvement, which will be influenced by a better discounting policy of suppliers and expected in II half of the year market recovery.

The forecast of DM IDMSA shows that in 2013 Inter Cars S.A. will work out 129 million of net profit in comparison to 100 million a year ago. Operating profit in this time will grow up to 178.6 million in comparison to 146.3 million PLN in 2012, and sales revenue up to 3.23 billion from 3 billion a year ago. Analysts of Trigon DM also forecast an increase – 122 million PLN in net profit at 3.3 billion PLN sales revenue. Ipopema Securietes forecast from the beginning of the year says that in 2013 the net profit will reach 121 million PLN and sales revenue 3.17 billion PLN.

 

Dynamic growth of share price in past few weeks made the price level go to the one which was target price from recommendations from the beginning of the year.