The revenue attained by the Group’s Distribution Business Unit had decreased mainly because of base effects and the difficulties in maritime transport, while the Retail Business Unit performed above average. AutoWallis continues to expect 2024 sales data to significantly exceed last year’s figures considering the current macroeconomic environment.

The AutoWallis Group achieved record revenue (HUF 106 billion) in the second quarter, increasing the first half year’s revenue to HUF 195.2 billion (+1%) despite the difficulties in the external environment. The revenue of the Distribution Business Unit amounted to HUF 108.7 billion, 9% lower year-on-year. However, the stronger second quarter indicates a trend of improvement: the 25% lag of the first three months has decreased. The reason for the temporary decrease is primarily technical in nature, explained by both the base effect of the exceptionally high sales of previous periods (2022 Q4 and 2023 Q1 and Q2) as well as the extended maritime shipping deadlines in the first half of the year caused by the Suez Canal and the Red Sea situation. Although these one-off effects have now been balanced out, the transport issues may continue to cause delays extending between the quarters despite the fact that order volumes exceeded the planned quantities. In the first six months of the year, the AutoWallis Mobility Services Business Unit increased its revenue by 35% to reach HUF 3.4 billion (of which HUF 900 million is a transaction effect) while the new unit’s EBITDA-generating capacity is—thanks to its activities—expressly high as compared to other units, amounting to HUF 1.3 billion in the first half with an EBITDA margin of 30.1%. The performance of AutoWallis’s Retail Business Unit surpassed market averages in the first half: sales of new vehicles grew by 17.9% even though the growth rate on the Group’s relevant markets and in Hungary was only 12%.** As a result, and thanks to the 26% increase in used vehicle sales, the revenue of the Retail Business Unit grew by 15% to reach HUF 83.1 billion, while the 2023 first half revenue of the Mobility Services Business Unit, reported separately starting from this quarter, contained the data of the base period.

Primarily due to the one-off base effects affecting revenue, the AutoWallis Group’s 2024 H1 EBITDA decreased by 13% to reach HUF 9 billion while its EBITDA margin dropped from 5.4% to 4.6%. The cost of goods sold (CoGS) dropped by 1 percent to HUF 162.6 billion, which shows the Group was able to increase its high gross margin level from 15.4% in the base period to 16.7%. The 40% increase in personal type expenses is primarily attributable to the growth in staff numbers due to acquisitions carried out in 2023 and because of wage increases carried out in keeping with the trends of labor market changes (the Group’s average headcount increased by 121 to reach 1051 persons in the first half). In the first half of 2024, the value of financial gains and losses was HUF -2.5 billion after last year’s losses of HUF 611 million, mainly because of the increase in financing volume (wigo carsharing vehicles) as well as realized and unrealized exchange rate profits and losses derived from the revaluation of periodic foreign currency items. (The realized and unrealized exchange rate gains obtained from revaluation had a significant positive effect amounting to HUF 1.1 billion in the first half of 2023 compared to a loss of HUF 646 million in the first half of this year.)

Evaluating the results of the first half, AutoWallis CEO Gábor Ormosy said that the revenue was in line with expectations, and he expects to see continued growth in sales compared to the base period in the coming quarters. Gábor Ormosy emphasized that based on the Group’s updated strategy, AutoWallis’s new vehicle sales may exceed 100 thousand units, its revenue HUF 750 billion, and its EBITDA profits HUF 40 billion in 2028, of which the latter two would constitute a doubling of 2023 results.

Investor Presentation 2024H1

Half year report

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