Auto Partner (APR) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 sales, with revenue rising 15.9% year-over-year to PLN 2,056.8 million, driven by strong domestic and export growth.

• Maintained solid profit margins and low debt despite market challenges, inflationary pressures, and higher wage costs.

• Net profit declined 9.3% year-over-year to PLN 97.2 million, mainly due to increased employee expenses and lower foreign exchange gains.

• Continued expansion of the distribution network, with a new 30,000 m² centre planned in Zgorzelec for late 2025 or early 2026.

• Dividend of PLN 19.6 million (PLN 0.15/share) was paid in June 2024 for FY 2023.

Financial highlights

• Revenue reached PLN 2,056.8 million, up 16% year-over-year for H1 2024.

• EBITDA was PLN 161.7 million (down 3%), with an EBITDA margin of 7.9% (down from 9.4% in H1 2023).

• Gross margin for Q2 2024 stood at 27.9%; gross margin improved to 27.1% from 26.7% year-over-year.

• Net profit margin decreased to 4.7% from 6.0% year-over-year.

• Operating cash flow was PLN 226.0 million, with cash and cash equivalents at PLN 41.8 million at period end.

Outlook and guidance

• Plans to further scale operations, including the launch of a new distribution centre in Zgorzelec.

• Management expects continued business growth, focusing on expanding branch and logistics networks, product diversification, and process automation.

• Positive prospects for the parts distribution market, supported by ongoing expansion and stable financial position.

• Key risks include wage inflation, currency fluctuations, and interest rate changes.

• No material impact from the war in Ukraine is expected unless the conflict escalates.