The first quarter of the year was characterized by a sharp decline in the car market and the volume of inventory and sales volume due to the supply difficulties of the car industry. However, the reduction / cancellation of private and institutional discounts, along with the strong demand for vehicles in the private and institutional market and the strong shekel exchange rate relative to import currencies, continued to push up the profitability of importers per unit sold.
Evidence of this can be found in the quarterly report published today by the Carasso Group, an importer of Renault, Nissan and Dacia. The Group’s total revenues in the first quarter of 2022 amounted to NIS 899 million, compared with NIS 1.09 billion in the corresponding quarter in 2021. Vehicles in the quarter fell sharply to NIS 426.6 million, compared with NIS 613.9 million in the corresponding quarter last year, but profits from the segment in the quarter jumped to NIS 113.8 million, compared with NIS 86.7 million in the corresponding quarter in 2021.
A similar phenomenon was also recorded in the company’s leasing business, thanks in no small part to the increase in the value of books of used vehicles due to the shortage in the market. Revenues from the Carasso Group’s leasing segment decreased in the quarter to NIS 370.2 million, compared with NIS 390 million in the corresponding quarter in 2021, but the segment’s profits grew in the quarter to NIS 76.4 million, compared to NIS 44.6 million in the corresponding quarter in 2020.
The Group’s gross profit in the first quarter of 2022 increased to NIS 255 million (approximately 28.4% of revenues), compared with approximately NIS 179.2 million (approximately 16.4% of revenues) in the corresponding quarter in 2021.
The company’s net profit in the first quarter of 2022 more than doubled to NIS 126.5 million, compared with NIS 60.7 million in the corresponding quarter last year.