News & Releasess
Autohellas: Results for H1 2020
Significant decrease in turnover in Q2 2020, while enhancing positive cash flows and achieving marginal profitability
The period of Q2 2020, brought along two basic features that significantly affected Autohellas Group. Firstly, it involved a 40-day period of a total shutdown of the market that restricted auto trade and used car sales activity. Secondly, during those three months, airport arrivals were close to zero, which significantly affected short-term rentals. On the contrary, long-term leases remained unaffected since contracts remained active.
Based on the above facts, the second quarter was supported by long-term leases but also in the gradual recovery of new car sales after the lockdown and the gradual lifting of travel restrictions after mid-May. At the same time, during the second quarter of 2020, the Group limited its operating expenses, making use of the relief measures provided by the State and taking protection measures for its employees. The actions mentioned above resulted in a marginally positive H1 2020 for the Group and the strengthening of the Group’s cash flows, despite the adverse conditions. More specifically, Autohellas’ Group total turnover reached €211.4 mil. compared to €258.8 mil. in 2019, a decrease of 18.3%.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) showed a 15.8% decrease, reaching €57.7 mil. compared to €68.5 mil in 2019, with operating profits (EBIT) reaching €10.5 mil. The Group’s consolidated Earnings after Tax (EAT) for H1 2020 reached €1.1 mil compared to €18.0 mil in the respective period of 2019.
At the same time, a positive element of H1 2020 for the Group was the positive cash flows amounting to €51.8 mil. and the reduction of Net Debt by €25.9 mil.
The Group’s strong capital structure and its high cash equivalents, allow for the absorption of shocks and the consequences of the crisis, confirming the Group’s stable position in the market.
It must be noted that during the 3rd quarter, which is the main period of formulating the Group’ s financial figures, there was a partial restoration of tourist arrivals but also the auto trade activity returned to its normal operations.