In a sluggish French car market in the first half, the Parot group posted mixed results. He had to make strategic changes, especially regarding his site Zanzicar.
Difficult times for French distributors. In a sluggish and changing new private vehicle market, operators must nevertheless make investments and make strategic choices that can sometimes cost them dearly. This is the case of the Parot group, which has mixed results in the first half of 2019. In the first six months of the year, the group generated revenue of 204.5 million euros, an increase of 10.9%. Only behind a convincing turnover, hides a operating loss of 2.7 million euros for the VP business, and against -1.4 million in the first half of 2018.
It is in this context that the Parot Group made two major strategic decisions: on the one hand, to separate its Ford plate located in the Center, and on the other hand to transform the site Zanzicar.fr, initially sales platform online vehicles, showcased VO all brands, and this in a logic of web-to-store. An evolution predicted by the end of the partnership with Norauto, announced a few weeks ago.
“These initiatives, which will be finalized in the second half, will bear fruit from the year 2020 “, explains Alexandre Parot , CEO of the group of the same name. Thus, the sale of 4 of the 5 concessions of the plate in question will be finalized in a few days: while the site of Blois has just been sold, those of Orleans North and South and Bourges should be sold to the group Amplitude the 29 next November. It should be noted that, during the first half, these Ford concessions represented 15.7 million euros in sales for a loss of 600,000 euros. As for Zanzicar.fr, its turnover reached 6.4 million euros for the first six months of the year for a loss of 1.5 million euros.
Global turnover up, operating profit down
All is not however black for the group Parot which, still on this pole private vehicles, could count on the good performance of VO 3000, the subsidiary specialized in the sale of VP all brands to the professionals . In the first half of 2019, this business generated revenues of 40 million euros and operating income of 800,000 euros. Another good news: the dynamism displayed by the commercial vehicles division. The latter generated a turnover of 83.5 million euros, against 78.4 million in the same period in 2018. The operating result also rose well, by 46%, from 900,000 to 1 million. , 4 million euros.
Overall, consolidated sales reached € 287.8 million in the first half of 2019, up 9.4% on a reported basis and 6.3% on a like-for-like basis. However, the group’s operating income came to -1.8 million euros, mainly due to the losses generated by the four Ford concessions currently being sold. The net result was -3.5 million euros, taking into account the financial result (-1 million), the exceptional result (-500,000 euros) related to the costs of the transformation of Zanzicar.fr and finally to impairment of goodwill (-200,000 euros).