After completing its 2013-2016 development program, Ennakl Automobiles intends to launch a second program by 2020. This new plan, which will be spread over the next 4 years, will aim at consolidating the achievements, studying new opportunities and prospecting new markets.
Ennakl automobiles is boosting a new dynamic growth. After the successful complete of its 2013-2016 development program, top management is preparing to start its new strategic plan for 2020.
"The objectives of the latest plan were all met. We even surpassed our ambitions on turnover by 15" Says Ibrahim Debache, CEO of Ennakl Automobiles.
According to the dealer, these performances reflect the beneficial effect of its purchase up to 60% by the Amen and Poulina groups in 2012.
And this despite the stress of the depreciation of the Tunisian dinar against the euro during the past few years, which could have burdened the gross margin of the distributor (cf: www.leseco.ma) . Hence the new approach of the group is based on a program named H2020 and which will cover the next 4 years. It focuses on six main areas, consolidating the gains, the study of new opportunities and new markets.
Among its ambitions the Tunisian dealer intends to expand its portfolio with the luxury brand Bentley. This will allow the multi-brand distributor (Volkswagen, Porsche, SEAT, Audi and Skoda) to confirm its premium positioning, and regain its leading market occupied in late March 2017 by the ARTES group, distributor of Renault-Dacia vehicles
The distributor strengthens its investments. Having progressed by only 4% between 2015 to 2016, the latter will grow over 55% this year to reach 16 million Tunisian Dinar (over 65 million Dirham) at the end of 2017.
Specifically, the dealer intends to strengthen its sales force with 18 points following the new segmentation of its network (between agencies, showrooms, and repair shops spare parts). Other new projects are under preparation. The dealer is in the process of developing a new business selling used cars. A pilot operation in partnership with Das WeltAuto will allow the distributor to earn some points in terms of market share. Moreover, the concessionaire fuels the Tunisian borders ambitions.

Ennakl Automotive Distribution, is about to develop the idea of exporting and duplicating its experience in Africa. To do this, a new structure, under the name of AFCAR emerged.
This is what will allow the group to grow on the continent, particularly in West Africa. For now, the distributor target is the Ivory Coast and Senegal, before expanding the spectrum to other countries in the region as well as in East Africa. To do so, Ennakl intends to rely on the network of its cousin Alios Finance (also owned by Amen Group). The leasing specialist is present in 9 African countries including Cameroon, Burkina Faso, Tanzania and Kenya.

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At the end of March 2017, the dealer has captured 16.14% of market share in the segment of passenger cars, beaten by the ARTES group with a market share of 18.47%. The dealer market share should gradually improve; reaching 16% in 2018 with an average selling price grow at a CAGR of 2.5% over the period 2016-2018. The challenge for Ennakl is maintaining margins taking into account the sharp depreciation of the Tunisian dinar against foreign currencies. The gross margin should thus be around an average of 18.9% between 2016-2018, thanks to a better negotiating power with its suppliers and a more interesting product mix. On the other hand, from 2015, the cash position of Ennakl group should further improve with the planned improvement in margins. The net debt of the company is negative -77 million Tunisian Dinar (-314 MDH) in 2015 and is expected to -148 million Tunisian Dinar (-604 MDH) in 2018. Beyond 2018, our DCF model is based on a growth rate of 2% for sales and EBITDA, that is to say an EBITDA margin of 13.9%.

Original Source : Leseco.ma

 

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