[Atlas] Portugal : Back in business, but no records broken

While some analysts were anticipating a 15% decline, the pandemic-hit 2020 did not turn out to be so devastating for the Portuguese parts market. Other encouraging indicators include a 6% hike in average profits and barely seven Top 100 companies recording a loss; but also headcount were maintained and even bolstered (+2%).Initial forecasts for 2021 point to growth of 5% compared with 2020, and therefore a market returning to pre-Covid levels; and this in spite of supply chain difficulties due to stockouts in many areas. Not quite the “remontada” observed in other European countries, but nor has it become a playground for acquisitions of debt-ridden companies-cum-restructuring targets for strategic investors, as certain analysts were forecasting last year.

A market shake-up around the corner?

Portuguese distributors, too, have managed to keep their business afloat without going bankrupt or defaulting! However, a few strategic moves made during this unstable 2020-2021 period have begun to outline a new landscape for Portuguese parts distribution. For example, just several months after joining AD Parts, Autozitania (no. 7 for parts sales in Portugal, with turnover of €35 million in 2020) acquired Bragalis (number 17 in the Jornal das Oficinas table with €14 million revenue). This fine deal will enable the optimisation of shared logistics around ‘12’ hubs, while also boosting the footprint of the Spanish group AD Parts on the Iberian Peninsula. Another Spanish group expanding its operations in its next door neighbour’s yard is Aser Group (a Nexus Automotive International member) which already boasts six members and is looking to increase this to a dozen by 2024, with turnover set to rise from 30 to 50 million euros over this period. Could concentration in the Portuguese market happen through Spanish ITGs? Watch this space.

Caroline Ridet

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Article produced withe the assitance of apcomunicacao - Jornal das Oficinas