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Revenue fell 7% year-over-year to HUF 219.9 billion, while EBITDA declined 31% to HUF 5.6 bln.
AutoWallis said the new Chinese brands added to its portfolio are expected to offset declining sales of incumbent brands over the medium term, although their market launches are weighing on earnings in the short term. The group said its diversified portfolio and other development projects continue to support stable growth and consolidation.
A 2% increase in revenue at the Retail Business Unit was not enough to offset a 17% decline in the Wholesale Business Unit.
AutoWallis said the rapid arrival of a large number of Chinese brands in Europe, including the Central and Eastern European markets that are particularly important for the group, was putting pressure on established brands and intensifying price competition across the market.
At the same time, companies introducing new brands, including AutoWallis, are facing significant initial costs associated with their market launches.
Of AutoWallis Group’s three business units, Mobility Services recorded the strongest growth in the first six months of the year, with revenue rising 25% to HUF 5.6 bln, driven mainly by stronger car-sharing and rent-a-car operations.
The group’s average fleet size increased 5.4% year-over-year, supported by a growing customer base in fleet management.
Revenue at the Retail Business Unit rose 2% to HUF 121.5 bln. New vehicle sales increased 9.7%, while used-car sales fell 5.6%, partly due to a strong base effect.
The increase in retail revenue was supported by the opening of the Debrecen dealership in the fourth quarter of 2025 and organically higher sales volumes.
Revenue growth lagged behind unit sales growth because of changes in the sales mix, a higher share of intra-group sales and the strengthening of the forint.
Among AutoWallis markets, retail sales volumes increased 27% in Slovenia, 4% in the Czech Republic and 2% in Hungary.
Wholesale revenue fell 17% to HUF 92.8 bln in the first half. The unit sold 3.5% fewer vehicles, while the stronger forint and, to a lesser extent, changes in model mix and pricing also weighed on performance.
The decline was mainly due to lower sales of KGM, down by 1,577 units, and Opel, down by 203 units. AutoWallis attributed the KGM decline to stronger competition in the segment and the sale of dealer inventories accumulated in the previous period, while Opel was affected by temporary manufacturing capacity constraints.
The company said its order book nevertheless indicated robust demand and that deliveries delayed by production constraints were expected to take place in the second half.
Efficiency measures introduced last year were not yet sufficient to offset the difficult market environment, weaker performance from established brands, greater price competition and the one-off costs associated with launching Chinese brands.
EBITDA fell 31% to HUF 5.6 bln, while the EBITDA margin declined to 2.6%.
The group’s results were supported by HUF 204 mln in profit attributable to AutoWallis from jointly controlled companies in which it holds 50% stakes. That contribution was nevertheless below the HUF 591 mln recorded in the same period last year.
Net profit amounted to HUF 172 mln, while earnings per share stood at HUF 0.32.
AutoWallis said its gross margin increased 4% from the previous period to 18.7%, which it said demonstrated the underlying strength of operations and the resilience of the portfolio.
The cost of goods sold declined 7%, in line with the revenue decrease, to HUF 178.9 bln.
Personnel expenses rose 6% to HUF 13.2 bln, partly reflecting the opening of the Debrecen dealership in late 2025 and wage increases in line with labor market expectations.
The average headcount at fully consolidated companies increased 5.4% year-over-year to 1,559 employees in the first half.
The negative balance of financial income and expenses improved 54% year-over-year to HUF 709 mln. The balance of interest expenses and income was broadly unchanged, while higher lease-related financial costs reflected the larger fleet in the Mobility Services Business Unit and newly leased properties.
Realized and unrealized foreign exchange movements related to the forint had a favorable impact compared with the same period last year, resulting in a HUF 1.7 bln gain due to the exchange rate at the end of the reporting period.
Gábor Ormosy, CEO of AutoWallis Group, said the company’s strategic focus remained on expanding its importer portfolio, strengthening its retail presence and developing its mobility business.
He said these areas were expected to support sustainable growth and stronger earnings over the long term.
Another significant part of the group-wide efficiency program was completed in the first half, although the effects of those measures are only expected to become visible in the coming quarters, Ormosy said.
The company’s development projects, new dealerships and recently added brands are expected to make an increasing contribution first to revenue and later to profit growth, he added.
AutoWallis said its previously defined strategic directions and the conditions for continued regional consolidation remain in place, while management will continue to adjust implementation of the strategy to market conditions.
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