Ennakl Automobiles Reports Strong 2023 Financial Performance and Outlines Ambitious Plans for 2024
Ennakl Automobiles held a financial communication meeting, during which the market leader reviewed its key achievements for 2023 and outlined its prospects for the current year.
2023 Performance
Despite a sluggish market growth of 1% (55,813 vehicles), Ennakl managed to increase its sales by 26% to 7,063 registrations (5,621 in 2022). Its market share rose to 12.7% (excluding local assembly).
Brand Performance
- Volkswagen holds 5% of the market, while Seat and Skoda each hold 4%.
- The new premium brand Cupra recorded 170 registrations.
- Audi leads the premium market with 507 cars sold in 2023.
- Volkswagen Commercial Vehicles sold 793 units, while Renault Trucks holds a 21% market share, making it the second most sought-after truck brand in Tunisia.
Financial Performance
- Revenue structure is dominated by new vehicle sales (94.4%), amounting to 609 million Tunisian dinars (Mtnd).
- Seat contributed the most to revenue (25%), followed by Volkswagen (20%) and Skoda (19%).
- The year saw a 15% improvement in gross margin to 107 Mtnd (130 Mtnd consolidated).
- EBIT reached 57.6 Mtnd (70 Mtnd consolidated), resulting in a net profit of 34 Mtnd (40 Mtnd consolidated).
2024 Outlook
- The market has recorded 11,191 new registrations so far, with Ennakl holding the second position with 1,499 units.
- First-quarter figures are in line with objectives, with revenue of 159 Mtnd and a gross margin of 29 Mtnd.
Strategy and Expansion Plans
- The dealership's strategy is based on three axes: quality products, proximity after-sales service, and diversification of offerings.
- Three new openings are planned for 2024, including two dedicated Porsche agencies in Sousse and Sfax, as well as a new Renault Trucks agency in Sfax.
Electrification and Hybridization
- The dealership plans to import Volkswagen, Seat, and Skoda electric and hybrid vehicles starting from 2026.
- For Porsche, 80% of sales are already composed of rechargeable hybrid or electric cars.
- Audi will also introduce two new hybrid models.
Additional Revenue Streams
- The dealership expects to generate 20 Mtnd from used vehicle sales.
- It aims to continue progressing in the heavy truck market and build a new logistics center dedicated to Renault Trucks.
- Spare parts sales are expected to generate 80 Mtnd, while rental activities will bring in 8 Mtnd.
ESG Commitment
- Ennakl Automobiles integrates environmental preservation, continuous human resource development, and good governance into its management.
- It is among the 15 listed companies on the Tunis Stock Exchange that have implemented ESG reporting.
Investor Confidence
- The communication content is expected to restore investor confidence.
- The stock has a return of -15.12% since the beginning of the year and closed yesterday at 10,610 Tnd, making it a good entry point for medium-term investors.