AAA AUTO GROUP N.V. 
By Regulatory Announcement of Inside Information
Published: 29.04.2013 at 17:15
AAA AUTO Group N.V. profit tumbles 42% IN 1Q13 due to worsening market trading conditions
Consolidated Unaudited Financial Results and Sales Results for 1Q 2013
Prague / Budapest, 29 April 2013 - According to consolidated financial results for the first quarter of 2013, AAA Auto Group N.V. net income tumbled 42% YOY by EUR 1.2 million to EUR 1.7 million from last years 1Q EUR 2,9 million. The 1Q sales results were flat YOY with 12,474 cars sold.
In the 1Q AAA AUTO Group faced lower supply of used cars, caused mainly by substantial drop in new car sales. Due to this situation the company had to spend more on its sourcing process, namely by increasing marketing and personnel expenditures. These factors together with unexpected foreign exchange losses lead to the 42% YOY net income drop. The company foresees the tightening trading market conditions to lead to the abovementioned increased expenditures until the 1Q of the next year. AAA AUTO Group's total revenues for 1Q 2013 grew by 2.6% to EUR 78.9 million compared to the same period last year. Operating expensesincreased to EUR 16.8 million. The increase in operating expenses of 10.8% outpaced the increase in total revenues of 2.6%. Main increase was recorded in marketing (+23% YOY) and personnel (+12% YOY) spendings. The opex / revenue ratio was 21,3%. Result of the increase in OPEX, EBITDA dropped down by 12.4% in the 1Q 2013 to the level of EUR 4.5 million compared to EUR 5.1 million achieved a year ago. The financial result was negatively influenced by unfavorable forex losses of EUR 0.8 million stemming mainly from exchange rate movements of local currencies versus EUR, which were compensated by lower interest expenses (-58% yoy).
Consolidated financial results for the first quarter of 2013 - key figures
· Total revenues of EUR 78.9m (+2.6% year-on-year)
o of which car sales accounted for EUR 64.2m (+0.2% yoy)
o of which revenues from financial services accounted for EUR 14.8m (+14.1%)
· Gross profit on sales reached EUR 21.2m (+5.2% yoy)
o The gross profit margin weakened to 26.9% in 1Q 2013 compared to the average profit margin of 27.6% for the whole 2012
· Together with the sales growth in the first quarter of 2013 the operating expenses increased by 10.8% yoy to EUR 16.8m
o of which personnel expenses representing 55% of total opex grew 12% to EUR 9.2m
o the opex / revenue ratio has exceeded the 21% level
· Operating profit (EBITDA) decreased by 12.4% to EUR 4.5m compared to EUR 5.1m in 1Q2012
· Profit before tax decreased to EUR 2.9m compared to EUR 4.1m in 1Q2012
· AAA AUTO Group decreased its consolidated net profit to EUR 1.7m in 1Q 2013 compared to EUR 2.9m achieved in 1Q 2012
Contact:
Petr TošekPavel Tu
