Belgium-based D’Ieteren, parent company to Belron, which owns Safelite AutoGlass, reported that its automotive repair and replacement business, before taxes, reached $109.6 million USD (92 million EUR), up 6.2 percent over the previous year, according to the company’s half-year report.
Year-over-year sales increased 6 percent, including a 5.3 percent organic increase, a 1.2 percent increase from acquisitions and a 0.1 percent positive currency translation affect, partially offset by a decrease of 0.6 percent from trading day, according to the company. Organic sales increased 5.3 percent—6.7 percent in Europe and 4.1 percent outside of Europe.
“Profitability was up in most European markets with in particular solid improvements in France and Germany. The UK realized a small profit compared to a loss in H1 2016. Many of the smaller European countries also delivered encouraging results,” the report states.
The U.S. produced lower profitability which Belron says was due to a mild winter in the Northeast, as well as additional costs related to the company’s service extension program, the report noted. However, the negative impact was slightly offset by growth in Canada and Germany.
“The [AGRR] business has also made good progress on its service extension ambition. The acquisition of CARe Carrosserie, a Belgian specialist in automotive damage repair was completed on 31 March 2017,” the report reads. “In July 2017, Belron announced the signing of an agreement to acquire Eurocar Point, a franchise network of 250 body shops in Italy. The deal is expected to close in September 2017. In addition to these acquisitions, the company substantially expanded its claims management activities with 1.9 million consumers served in H1 2017 representing a 17-percent rise compared to H1 2016.”
Looking ahead, the company says it expects to have moderate organic sales growth and a slightly lower adjusted result before tax for the 2017 fiscal year. According to the report, this is due to additional costs relating to its service extension program, higher charges for a long-term management incentive program and a weaker U.S. dollar.
To read the full report, click here.