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Introduction & Market Context
Auto Partner SA (WSE:APR) presented its full-year 2024 financial results on April 16, 2025, highlighting record revenue growth despite facing deflationary pressures in the automotive parts market and currency headwinds. The Polish automotive parts distributor has maintained its position as one of the largest distributors in the country with approximately 10% market share.
The company operates in a mature European automotive market characterized by high vehicle ownership (545 cars per 1,000 inhabitants in Poland and 563 in the EU) and aging vehicle fleets (average age of 15.1 years in Poland and 12.5 years in the EU). While new car registrations in Poland increased marginally by 0.3% year-on-year, the EU experienced a 3% decline, creating a stable environment for the aftermarket parts business.
As shown in the following overview of Auto Partner’s business:
Financial Performance Highlights
Auto Partner achieved record revenue of PLN 4,112.5 million in 2024, representing a 12.6% increase from the previous year. This growth is particularly noteworthy given the deflationary environment in the automotive parts market, where prices declined by 6.6% by Q4 2024, and the appreciation of the Polish złoty against major currencies.
The company maintained a balanced revenue distribution between domestic and export markets, with domestic sales reaching PLN 2,069.3 million (up 13.3%) and export sales totaling PLN 2,043.2 million (up 11.8%). This marks the first time Auto Partner’s annual revenue has exceeded PLN 4 billion.
The following chart illustrates the company’s key financial results for 2024:
Despite the impressive revenue growth, Auto Partner experienced slight pressure on profitability metrics. EBITDA decreased by 1% to PLN 343.6 million, EBIT fell by 4% to PLN 289.3 million, and net profit declined by 7% to PLN 208.0 million. The company maintained a solid gross margin of 27.4% for the year, though distribution and marketing expenses rose by 20.1%, outpacing revenue growth due to cost pressures including minimum wage increases.
The breakdown of domestic and export sales growth over recent years demonstrates the company’s consistent expansion in both markets:
Strategic Initiatives and Expansion
Auto Partner continues to expand its distribution network, which currently includes 118 branch offices across Poland and two in the Czech Republic. The company’s warehouse footprint spans approximately 160,000 m², with plans to add a significant new distribution center in Zgorzelec.
The Zgorzelec facility, scheduled to open in late 2025 or early 2026, will add 30,000 m² of warehouse space, increasing the company’s capacity by approximately 30%. According to management, this will become Auto Partner’s most advanced and highly automated logistics hub, supporting further growth in both domestic and international markets.
The company’s key developments in 2024 highlight its strategic focus areas:
Auto Partner’s private label and exclusive brands continue to be a significant driver of business, accounting for approximately 19% of sales. The maXgear brand, with over 35,000 product references across 80 product groups, remains the flagship private label offering. The company also maintains a network of 559 MaXserwis affiliated workshops as of year-end 2024.
Market Challenges and Outlook
Despite achieving record revenue, Auto Partner faces several market challenges. The deflationary environment in the automotive parts sector has put pressure on margins, as illustrated by the consistent price declines throughout 2024. Currency fluctuations, particularly the appreciation of the Polish złoty against the euro, have also impacted the value of export sales.
The company has maintained strong margin levels despite these challenges, as shown in the following chart:
Auto Partner’s inventory management remains efficient, with inventory turnover improving to 133 days in 2024 compared to 137 days in 2023. The company ended the year with a stable liquidity position and a low debt level, with a net debt to EBITDA ratio of 1.3x.
Looking forward, management expressed a positive outlook for the automotive parts distribution market, citing the aging vehicle fleet in Poland and Europe as a supportive factor. The company plans to focus on margins and cost control while continuing to expand its business scale, particularly through the launch of the new Zgorzelec distribution center.
The company’s summary of key achievements and outlook:
Auto Partner shares are currently trading at PLN 19.32, up 2.48% in the most recent session, within a 52-week range of PLN 15.10 to PLN 25.25. The stock has shown resilience despite the slight decline in profitability metrics, suggesting investor confidence in the company’s long-term growth strategy and market position.
Full presentation:
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