Volkswagen distributor D'Ieteren flags softer auto glass repair demand in N America
Recasts throughout, adds analyst comments, share move
By Dimitri Rhodes and Dagmarah Mackos
May 30 (Reuters) -Belgian car distributor D'Ieteren IETB.BR on Wednesday reported 3.06 billion euros ($3.30 billion) in first-quarter sales and flagged lower volumes for its auto glass repair business in North America due to milder weather.
The group, which distributes Volkswagen, Audi, SEAT, Škoda cars in Belgium, reported combined sales of 3.83 billion euros over the same period a year earlier. The numbers were not comparable as the company changed the way it reported its results.
Still, sales in Berlon, the company's auto glass repair unit and its biggest division, increased by 5.7% organically, as strong demand in Europe and other regions mitigated flat results in North America.
Volumes in its North American business, which accounts for 55% of the unit, dropped as mild weather reduced demand, echoing comments made earlier this month by Canadian peer Boyd Group Services.
"During the winter periods they kept technician staff to cope with capacity issues, but now they have the capacity but not the volume," said KBC Analyst Michiel Declercq.
"This might weigh a bit on profitability in the first half," he added.
D'Ieteren reiterated its forecast, typically considered conservative by analysts, of mid- to high single-digit percentage growth in its adjusted profit before tax for 2024.
Its aftermarket parts distributor unit, TVH, recovering from a recent cyberattack, showed strong organic growth of 12.2%.
Excluding the reversal of the cyber impact, underlying volume trends are roughly flat, said Declercq.
Moleskine, the group's luxury notebook brand, recorded a 6.3% organic decline in earnings, reflecting the impact of inventory management at e-commerce platforms since early 2023.
D'Ieteren shares, which rose around 14% this year, were broadly flat in morning trade.
Reporting by Dimitri Rhodes and Dagmarah Mackos; Editing by Himani Sarkar, Bernadette Baum and Sriraj Kalluvila
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
