Hungarian car seller AutoWallis concludes historic agreement buying Czech competitor

Listed Hungarian car seller AutoWallis on Friday announced an agreement to buy 100pc of Czech peer MILAN KRAL GROUP, in the company’s biggest acquisition to date.

The transaction further bolsters AutoWallis’s presence in Czechia’s “generally more profitable” market, the company said. It added that new car sales in Czechia were over 244,000 in 2023, nearly double the number in Hungary.

Revenue of MILAN KRAL GROUP was the equivalent of HUF 50bn in 2023, compared to AutoWallis Group’s turnover of HUF 366bn. MILAN KRAL HOLDING sells and services the BMW, Mercedes-Benz, Mercedes-Benz Truck and Ford brands, and services the Opel brand. It also has its own used car business under the brand auto.pro.Tebe.

Photo: FB/Autowallis

The transaction is expected to close in December, pending approval by the Czech competition authority and the fulfillment of other conditions.

In the summer, AutoWallis acquired another Czech retail business: Stratos Auto’s three BMW dealerships.

Net income of listed car seller AutoWallis fell 54pc year-on-year to HUF 4.7bn in Q1-Q3 as acquisition-related costs weighed, an earnings report released on Friday shows. Revenue edged up 3pc to HUF 291.2bn. Revenue of the wholesale division fell 5pc to HUF 161.3bn, while revenue of the retail business climbed 16pc to HUF 123.6bn.

Cost of goods sold inched up 2pc to HUF 240.6bn, nearly in tandem with sales, while cost of services increased 30pc to HUF 16.2bn, boosted by spending on marketing and acquisition-related costs. Payroll costs jumped 35pc to HUF 14.2bn as headcount climbed because of acquisitions and wage rises. CEO Gábor Ormosy said full-year sales were expected to exceed last year’s in spite of the current macroeconomic environment.

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