AutoWallis Registers Over HUF 360 bln in Revenue in 2023

Automotive

Car sales and mobility service provider AutoWallis Group registered a record revenue of HUF 366 billion in 2023, according to a press release sent to the Budapest Business Journal.

Last year, revenue saw an increase by 36% with a similar jump in EBITDA to HUF 19.7 billion. Similarly to revenue, the value of cost of goods sold (CoGS) grew by 36% to HUF 305.3 biln.

AutoWallis says that its 36% increase in personnel expenses is primarily attributable to the acquisitions of the past two years and the resulting growth in average staff numbers (which increased by 123 to reach 983 persons in 2023). After the previous year’s figure of HUF -1 billion, the value of financial gains or losses was HUF -4.4 billion in 2023, caused mainly by increases in the interest environment, in financing volumes due to acquisitions, and a substantial jump in financing expenses related to business as usual.

As a result of these effects, the company’s total comprehensive income grew to HUF 9.6 bln (+5%) with earnings per share increasing to HUF 21.3 (+11%). AutoWallis Chairman Zsolt Müllner added that since a number of points in the growth strategy announced when the company was listed five years ago and then revised with higher figures in 2021 have been outperformed, the company is expected to again revise, in the first half of the current year, the previously set sales and finance targets.

Regarding the results, AutoWallis CEO Gábor Ormosy explained that the group’s unbroken dynamic development can be attributed to its consistently implemented growth strategy, in which expansion is supported by acquisitions in addition to organic growth. He pointed out that the company carried out acquisitions mainly in the area of services (fleet management and car-sharing, among others) while also recognizing the expansion of Asian manufacturers and being among the first to enter into partnerships with Chinese brands such as BYD and MG.

He added that the fact that close to 60% of revenue originated from international markets and that Opel has extended the Group’s wholesale contract for four countries in the CEE region are a good indication of AutoWallis’s increasingly strong position in the region.

The AutoWallis Group’s revenue increased to HUF 217.3 bln (+37%) in its Distribution Business Unit and to HUF 149 bln (+34%) in its Retail & Services Business Unit. Of the two business units, the Distribution Business Unit saw a greater increase, which grew the number of vehicles sold by 57.6% to reach a total of 34,943. Despite of the disadvantageous environmental environment, the group's Retail & Services Business Unit, which operates primarily in Hungary, sold 7,907 new (+8,1%) and 2,059 used (+13.4%) vehicles.

The services offered by the AutoWallis' Retail & Services Business Unit also continued their expansion in both repairs and short-term rentals: in addition to a 9.7% growth in the number of service hours, Sixt, which is represented by AutoWallis in Hungary, also increased the number of rental events by 5.4% with an 11.2% drop in rental days. Thanks to the acquisition of Nelson Flottalízing Kft. at the beginning of last year followed by the purchase in August of Wallis Autómegosztó Zrt., which operates wigo (formerly Share Now) in Hungary, the group's mobility service vehicle fleet is now four and a half times larger, which allowed the group to serve client needs with a total of 3,979 vehicles last year.

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