AAA Auto sold 120 million last year, it was growing fast

etzci autobazar AAA Auto last year did not go as well as you pl. Its economy ended in a minus of 120 million crowns, which was lost in t, not expected by the market. The group itself went to lt potala with the fact that it issued 200 million. He got into a loss due to pehnan expansion.

The market reacted to the current downturn. “The result was a mountain, it was not expected, also the price of the action soon weakened by a tin percent. However, the loss itself was not surprising, even before the tenth hour the decline fell to about five percent, “said iDES.cz analyst at esk spoitelny Radim Kramule.

The company’s results are mainly due to the company’s desire for fast growth. The company went abroad to sell old cars, especially in the second half of the year. The new branches came into operation slowly, they did not operate as the company imagined, and the company thus encountered personnel problems. – more here

The strong koruna, which reduced the price of individual imports of used cars to the Czech Republic, also contributed to the hormonal sales results. “This combination of unfavorable and unexpected influences caused the result to fall in the fourth quarter,” said Anthony Denny of the group.

Last year, AAA’s sales increased by 35 percent to 470 million euros, ie about 11.7 billion crowns. Operating costs rose by 54 percent in terms of about two billion crowns. Operating profit fell by 94 percent to 700 thousand euros (17.5 million K).

The company, however, in the fact that it bet on the rapid expansion in the first place, because the new sales cities sent the company built in new markets. “New affiliates will start generating sales in the future. The loss is important for the fact that the past year has been very positive for our company, “said Denny.

AAA shares lost more than half the value

The company entered the Prague and Budapest stock exchanges last autumn. (more here) From the opening 55 K per share, however, its price fell more than the current approximately 24 crowns. Some investors, the company’s management, accused that the threat of loss led her during the life of the event. But the company refused.

Now he wants to convince investors that he is a good choice for them. Profit and yard investor can provide several measures.

This year, it’s Denny
The company will first focus on maximizing sales and profitability at all branches. For the whole wall costs with the help of strict budgets. Zethlit thus wants to lead the company’s top management and focus more on the group’s sales staff. He gave the expansion to be spread over a long period of time, after lots of experience.

“I firmly believe that the measures put in place will bring it results over the course of this year, which will drive the shareholder into the profitability of their investment in the AAA Auto Group’s action,” added Denny.

“The dynamics of sales show that the company could be profitable this year. But bad about how to look at the costs, “said Kramule.

Last year, the AAA Auto Group sold 79,871 cars in five countries, which is tens of percent more than in 2006. The number of branches increased by 20 to 45 car centers in the Czech Republic, Slovakia, Hungary, Poland and Romania. The group was to sell second-hand cars in Russia, but also in Ukraine, Serbia, Bulgaria and Turkey. – more here

Heath IM Provement