Carglass fuels again substantial profit for D’Ieteren

Brussels-based holding company D’Ieteren Group, best known for importing and distributing cars of the Volkswagen Group and Carglass, posted a gross profit of 548,9 million euros during the first six months of this year.

That is almost half as much profit as during the same period last year. The central part of the profit comes from D’Ieteren’s stake in car glass company Belron, which operates in Europe under the  Carglass brand.

Adjusted consolidated profit before tax of 548 9 million euros is up 46,5% compared to the first half of 2022 with contribution from acquired PHE (supplier of parts and services for passenger cars and trucks), and by 25,6% without PHE.

D’Ieteren consequently raises its profit forecast for 2023 slightly again. Today, it assumes “more than 960 million euros”.

At Belron, adjusted profit before tax rose 34.8% year-on-year to 286.8 million euros. The adjusted operating margin increased significantly to 21.9%, up from around 18% a year earlier. This improvement was due to higher sales and robust cost control, according to D’Ieteren CEO Francis Deprez.

More than 66 000 cars sold

At D’Ieteren Automotive, there was a 42.1% rise in adjusted profit before tax in the first semester, to 143,2 million euros. This came thanks to a recovery in car production levers at the Volkswagen group.

The Belgian new car market was up 34,8%. D’Ieteren delivered 66 362 cars, up 41,5% compared to the first half in 2022, accounting for a market share of 22,9%. D’Ieteren Automotive said it was the clear market leader in the all-electric car segment, with a 27,8% market share.

Cyber-attack survived

During the first half, PHE contributed 78 million euros to D’Ieteren Group’s profit. For TVH, which distributes components for forklifts and tractors, for example, and of which D’Ieteren owns 40%, it was 36,9 million, down 33,6% year-on-year mainly due to the impact of a severe cyber-attack in March. Due to the attack, operations at TVH in Waregem were at a standstill for some two and half weeks. TVH, which has 5 000 staff, operates from 81 branches for customers from at least 180 countries.

Since 1 September, Edouard Janssen has joined D’Ieteren Group as CFO, succeeding Arnaud Laviolette, who retired. The Executive Committee was expanded, with a Chief Investment Officer, Nicholas Sailed, Chief Legal Officer, Amélie Coens, and Deprez and Jassen.