2014 was a very good year for Mutandis’ Automobile Distribution business: the market grew by 1.4% while the brands distributed by Mutandis grew by 14% overall. Honda grew by 23%, selling almost 900 cars and Seat grew by 9% with more than 1,500 cars sold.
This progression led to a 12% increase in turnover. For Honda the key factors were the introduction of the CR-V 1.6L Diesel at a competitive price, and a decrease in the price of the Accord due to a decrease in the Japanese Yen (purchase currency) exchange rate. As for Seat, the new Seat Leon benefited from its first full year of sales and has now allowed itself the luxury to pass the Volkswagen Golf in the ranking of compact cars. Overall results were favorably impacted by the commercial offensive at the car fair and the negotiations with our partners to obtain competitive prices: Seat Ibiza Diesel at less than 150 000 Dh, Seat Leon Diesel at less than 190 000 Dh, and Honda CR-V Diesel at less than 280 000 Dh.
These positive results significantly boosted margins both in percentage and in absolute value. This margin improvement is also due to the excellent product mix as we sold more Seat Leon and Honda Accord cars, which have better margins, than other models of the Group.
EBITDA substantially increased thanks to the margin improvement but also thanks to cost optimization, as we reduced the wage bill, rent, and other expenses.
These results enabled Mutandis to achieve the highest EBTIDA since it entered the Automobile Distribution business.