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AutoWallis blames WLTP for lower profits

After-tax profit of Budapest Stock Exchange-listed car dealer AutoWallis fell 58% to HUF 0.8 billion last year, an audited earnings report shows, according to Hungarian news agency MTI.

AutoWallis blamed the drop on a temporary decline in the profitability of the international distribution segment caused by the application of the Worldwide Harmonized Light Vehicle Test Procedure (WLTP), an emissions test for all new car registrations. Exchange rate changes and higher payroll costs also weighed on the bottom line, AutoWallis added.

Revenues edged up 2% to HUF 65.5 bln. Costs of goods sold increased 3% to HUF 57.3 bln, and payroll costs jumped 28% to HUF 1.3 bln.

Operating profit fell 25% to HUF 1.5 bln.

AutoWallis booked a net financial loss of HUF 0.4 bln, after booking a net gain of HUF 0.4 bln in the base period.

AutoWallis reiterated its goal to double annual revenues within five years. The company will unveil a strategy to achieve that goal in May.