Car distributor D'Ieteren expects higher 2023 profit (updated)
08/03/2023 18:27
(Adds detail, quote from call)
By Olivier Sorgho and Vittorio Maresca di Serracapriola
March 8 (Reuters) - Belgian car distributor and vehicle
glass repairer D'Ieteren Group IETB.BR on Wednesday said it
expected further profit improvement in 2023, helped by growth in
its businesses and the acquisition of Parts Holding Europe
(PHE).
The company expects a full-year adjusted profit before tax,
group share of around 900 million euros ($950 million), against
the 733.4 million reported in 2022, and 486 million in 2021.
"Even if we had some capacity issues... we've been able to
generate significant volume growth," the group's finance chief
Arnaud Laviolette told analysts in a call.
Microchip shortages exacerbated by COVID-19 in China and the
war in Ukraine weighed on the automotive sector in 2022, raising
costs in tight supply chains.
But car registrations in Europe have been recovering since
the second half of 2022, while carmakers like D'Ieteren's client
Volkswagen VOWG_p.DE , and Stellantis STLAM.MI reported
upbeat outlooks for 2023.
The company's Belron business, which repairs and replaces
car windshields, produced total sales growth of 20% in 2022,
helped by higher volumes and a favourable price/mix effect,
despite inflation and supply-chain problems, D'Ieteren said.
"If we need to increase the price again, we will do it,"
Laviolette added in the call.
The company's Automotive business, which distributes brands
like Volkswagen, Audi, and Škoda, reported an 11.4% rise in
sales, despite a 2.0% drop in the market for new car
registrations in Belgium.
"The Belgian market is expected to progressively recover
from depressed levels," the company said, referring to
automotive sales.
PHE, which D'Ieteren acquired last year, contributed 38.8
million euros in adjusted pre-tax profit in 2022.
"We continue on the bolt-on acquisition strategy," the CFO
added.
D'Ieteren proposed a gross ordinary dividend of 3.00 euros
per share for 2022, against 2.10 euros in 2021.
($1 = 0.9477 euros)
(Reporting by Olivier Sorgho and Vittorio Maresca di
Serracapriola in Gdansk
Editing by Mark Potter and Jane Merriman)
((Olivier.Sorgho@thomsonreuters.com))