Recently honored with the Budapest Stock Exchange’s Best of BSE award for its contributions to capital market development, the group continues to expand its influence across various sectors.

BBJ: The Budapest Stock Exchange recently honored the Wallis Group’s contributions to capital market development. What specific initiatives led to this achievement?

Gyula Mező: As an investment group, we operate and own significant companies in 17 European countries, with the capital market playing a pivotal role in our journey. This award is particularly meaningful as it coincides with our 35th anniversary. Our portfolio companies have leveraged the Hungarian stock market at critical growth stages, leading to several successful stock market stories over the past three decades. For instance, AutoWallis has evolved into a key regional integrated car and mobility service provider. Since its 2019 stock market debut, prepared through a rare “reverse takeover” transaction in regional stock exchanges, the company has successfully raised capital multiple times from the Hungarian market. It has twice received the Budapest Stock Exchange’s “Share Capital Increase of the Year” Award and, by 2024, had grown into a regional group with a turnover of EUR 1 billion.

Similarly, our real estate development and investment group, the Wing Group, actively utilizes capital market opportunities, holding significant stakes in the German, Polish, and Hungarian markets. Wing bonds have been listed on the Budapest Stock Exchange since 2016, with a EUR 37 million bond issuance executed last year.

Another success story is Alteo, which we supported as a founder from its inception in 2008 and took public in 2010, aiding its growth through a well-planned bond issuance and capital-raising program. From a public offering price of HUF 588 per share in 2016, the stock price had reached HUF 3,300 by the end of 2022 when we exited. Today, it trades near HUF 6,000.

Our latest stock market story involves acquiring a significant stake in Akko Invest, which is listed on the Prime Market of the Budapest Stock Exchange. Our goal with Akko is further growth, enhancing the company’s asset management, real estate investment, and leasing activities. Over the years, we’ve consistently relied on the stock market’s growth-supporting power, even seeking innovative stock market transaction types.

BBJ: The Wallis Group has become a significant player in multiple sectors across CEE. What strategic considerations guide your decisions to enter new markets?

GyM: In sectors where we’ve developed substantial, experience-based competence post-launch, the next growth step often involves geographical diversification. Few remember that the AutoWallis Group, now representing 27 brands in 16 states, began three decades ago by taking over Saab’s wholesale activities in Hungary and several regional countries. A similar trajectory applies to the Wing Group, which, after two decades of real estate development experience in Hungary, expanded into larger European markets: first by acquiring a majority stake in Echo Investment, one of the largest Polish real estate developers listed on the Warsaw Stock Exchange. Subsequently, under our leadership, Echo acquired a majority stake in another listed Polish company, Archicom. The next milestone was entering Germany by purchasing a majority stake in Bauwert, a Berlin-based regional real estate developer with a unique character within the German market. This internal competence-based, geographically diversified growth strategy has long been integral to the Wallis Group.

BBJ: What are your future growth plans for AutoWallis and the Wing Group?

GyM: AutoWallis’ updated strategy, published last year, aims to achieve HUF 750 bln in revenue, HUF 40 bln in EBITDA profit, and HUF 25 bln in pre-tax profit by 2028 through organic growth and acquisitions. A key objective for AutoWallis is to represent already affiliated brands in as many of its operating countries as possible. The company intends to continue expanding in Central and Eastern Europe while working to broaden its brand portfolio, particularly focusing on emerging manufacturers and brands.

For the Wing Group, we are actively monitoring new project and investment opportunities in the regional real estate development market. Our non-listed portfolio companies also have specific growth plans. Praktiker Hungary, part of the group since 2016, has expanded its nationwide coverage to 23 stores by opening two new units this year and one last year, further strengthening its market share.

BBJ: An international presence has always been crucial for the company. How do you view the prospects of Hungarian companies succeeding in regional and European markets?

GyM: The Wallis Group’s growth exemplifies that international success stories can be built starting from Hungary. I firmly believe that, alongside leveraging capital market opportunities, our growth is attributed to consistently representing our core values. We develop and manage our companies with expertise, integrity, and responsibility. We maintain openness and transparency with both investors and business partners. These values contribute to creating value as a Hungary-based investment group, building competitive companies across Europe. Adhering to our fundamental principles and diligent work has proven rewarding: our specialized flooring manufacturer, Graboplast, generates over 80% of its revenue from exports, selling its products to more than 70 countries across all continents. AutoWallis Group already earns 60% of its revenues outside Hungary, with this proportion increasing annually. Similarly, more than half of the Wing Group’s total assets now originate from abroad. These are examples of Hungarian companies with modern management knowledge, genuine market value creation capabilities, and stability.

BBJ: Over the past 35 years, the Wallis Group has built several successful stock market stories. Which of these is the most memorable for you in recent years?

GyM: Personally, the success story of Alteo is the most significant for me, as I was actively involved in shaping its development for many years as chairman of the board. Wallis was already present when Alteo was founded, and for 15 years, we played a decisive role in structuring the company’s operations. However, I can also mention another recent example from a different industry. One of our latest transactions involved successfully selling Foxpost, a dominant player in the Hungarian parcel locker market, to an international strategic investor. We had been engaged in Foxpost’s journey from its inception, supporting its growth and development.

BBJ: What specific sustainability goals have you set for the coming years?

GyM: We focus on building sustainable, fair, and responsible companies that, in addition to achieving their business objectives, contribute to social and environmental well-being and economic development in Hungary and the region. We aim to integrate this approach into the core operational strategies of all our companies, ensuring that appropriate ESG strategies are continuously developed and implemented. Let me share a few examples. We have installed solar panels in all of Praktiker’s company-owned stores and are completing a similar solar panel investment project this year at Graboplast’s three Hungarian production sites. In real estate development, the Wing Group prioritizes obtaining environmental and energy-efficient building certifications for its projects. The AutoWallis Group was the first company listed on the Prime Market of the Budapest Stock Exchange to develop and adopt a Green Financing Framework, issuing green bonds in 2021 with significant oversubscription. Additionally, its car-sharing brand, Wigo, offers a more sustainable, shared mobility service to over 100,000 users.

BBJ: Which industry do you see as having the highest growth potential?

GyM: We consider ourselves “opportunistic” investors in the best sense, meaning we seek industries where we can build long-term regional and Hungarian success stories. Our approach is to deeply understand and learn these sectors before applying international market value-creation strategies to develop long-term growth stories through promising, high-performing companies. So far, this strategy has yielded significant successes in real estate development, automotive distribution, and retail commerce. We are actively searching for the next long-term growth sector that aligns with our investment philosophy.

BBJ: How do you maintain and develop your leadership and expert teams?

GyM: Over my 17 years with Wallis, we have successfully built a diverse leadership talent pool. This consists of multiple components. On the one hand, we have many experienced leaders who have grown within the group, developing their expertise and leadership skills here. On the other hand, thanks to our strong values and cross-border success, we can attract talented executives from the job market who have gained valuable experience at major international corporations. I firmly believe that this mixture, blending internal and external knowledge within a values-driven and professional corporate culture, is a key factor in our continued success.

BBJ: What long-term goals have you set for the Wallis Group?

GyM: I deeply admire and consider it a great success that, over the past 35 years, under the leadership of founder and majority owner Tibor Veres, Wallis has grown into a highly respected, privately-owned investment group in Hungary and a recognized player on the European stage. Looking ahead, our goal is to increase our presence and influence in new industries and regions while maintaining our tradition of reinvesting the profits generated by our companies to fuel further growth. In the long term, we are building an international investment group that creates lasting value across generations.

This article was first published in the Budapest Business Journal print issue of May 5, 2025.