Kamux Corporation | Interim Report | November 08, 2024 at 09:00:00 EET
This is a summary of Kamux Corporation's Interim Report for January 1-September 30, 2024. The complete report is attached to this release and is also available at the company website at www.kamux.com.
The figures in parentheses refer to the comparison period, i.e., the same period in the previous year, unless stated otherwise.
July-September in brief
- Revenue decreased by -0.8%, totaling EUR 280.2 million (282.4)
- Gross profit decreased by -6.3% to EUR 27.5 million (29.4), or 9.8% (10.4) of revenue
- Adjusted operating profit (EBIT) decreased by -22.3% to EUR 5.5 million (7.1), or 2.0% (2.5) of revenue
- Operating profit (EBIT) decreased by -39.0% to EUR 4.2 million (6.8), or 1.5% (2.4) of revenue
- The number of cars sold decreased by -4.5% to 18,484 cars (19,364)
- Like-for-like showroom revenue decreased by -5.6% (8.2)
- Basic and diluted earnings per share were EUR 0.05 (0.12)
- Challenges in Sweden continued
January-September in brief
- Revenue increased by 1.7%, totaling EUR 773.5 million (760.5)
- Gross profit increased by 0.2% to EUR 76.6 million (76.4), or 9.9% (10.0) of revenue
- Adjusted operating profit (EBIT) decreased by -12.7% to EUR 10.9 million (12.5), or 1.4% (1.6) of revenue
- Operating profit (EBIT) decreased by -24.2% to EUR 8.6 million (11.3), or 1.1% (1.5) of revenue
- The number of cars sold decreased by -0.5% to 51,658 cars (51,903)
- Like-for-like showroom revenue decreased by -2.1% (1.3)
- Basic and diluted earnings per share were EUR 0.08 (0.18)
Key Figures
| EUR million | 7-9/2024 | 7-9/2023 | Change, % | 1-9/2024 | 1-9/2023 | Change, % | 1-12/2023 |
| Revenue | 280.2 | 282.4 | -0.8% | 773.5 | 760.5 | 1.7% | 1,002.1 |
| Gross profit | 27.5 | 29.4 | -6.3% | 76.6 | 76.4 | 0.2% | 102.5 |
| as percentage of revenue, % | 9.8% | 10.4% | 9.9% | 10.0% | 10.2% | ||
| Operating profit (EBIT) | 4.2 | 6.8 | -39.0% | 8.6 | 11.3 | -24.2% | 15.8 |
| as percentage of revenue, % | 1.5% | 2.4% | 1.1% | 1.5% | 1.6% | ||
| Adjusted operating profit* | 5.5 | 7.1 | -22.3% | 10.9 | 12.5 | -12.7% | 18.0 |
| as percentage of revenue, % | 2.0% | 2.5% | 1.4% | 1.6% | 1.8% | ||
| Revenue from integrated services | 14.6 | 13.6 | 7.0% | 41.5 | 37.6 | 10.4% | 53.0 |
| as percentage of revenue, % | 5.2% | 4.8% | 5.4% | 4.9% | 5.3% | ||
| Number of cars sold | 18,484 | 19,364 | -4.5% | 51,658 | 51,903 | -0.5% | 68,257 |
| Gross profit per sold car, EUR | 1,489 | 1,517 | -1.9% | 1,482 | 1,472 | 0.7% | 1,502 |
| Sales growth of like-for-like showrooms, % | -5.6% | 8.2% | -2.1% | 1.3% | 2.9 % | ||
| Net debt | 74.6 | 68.4 | 9.1% | 53.8 | |||
| Inventories | 147.9 | 138.0 | 7.2% | 117.2 | |||
| Inventory turnover, days | 54.1 | 57.2 | -5.5% | 46.9 | |||
| Capital expenditures | 0.4 | 0.3 | 22.7% | 2.1 | 1.2 | 82.9% | 1.8 |
| Average number of employees during the period | 907 | 881 | 3.0% | 885 | |||
| Return on equity (ROE), % | 5.2% | 6.8% | 8.7% | ||||
| Return on investment (ROI), % | 4.9% | 4.5% | 6.6% | ||||
| Equity ratio, % | 46.0% | 48.0% | 51.9% | ||||
| Earnings per share, basic and diluted, EUR | 0.05 | 0.12 | -59.8% | 0.08 | 0.18 | -54.1% | 0.24 |
*) Operating profit adjusted for special items related to strategic planning and consulting, legal processes, taxes from previous financial years, own real estate operations and other items, totaling EUR 1.4 million for the third quarter of 2024 and EUR 2.3 million for 1-9/2024 (7-9/2023: EUR 0.3 million, 1-9/2023: EUR 1.2 million and 1-12/2023: EUR 2.2 million).
CEO Tapio Pajuharju:
"The third quarter was challenging for Kamux. The fairly decent performances in Finland and Germany were not enough to offset the losses caused by the boosted corrective actions in Sweden, and in October we were in a situation where we had to lower our outlook for the year 2024.
In terms of revenue, we fell below the comparison period despite good revenue growth in Finland and increased revenue also in Germany. Sales of integrated services continued to develop favorably. Gross profit declined compared to the comparison period due to the negative development in Sweden. In Germany, gross profit developed favorably, and in Finland gross profit was at the previous year's level. Adjusted operating profit for the third quarter weakened from the comparison period and was EUR 5.5 million (EUR 7.1 million). Operating cash flow for January-September was EUR -12.1 million (EUR -2.3 million), as the wholesale purchases made to Finland at the end of the quarter increased the value of the inventory.
In Finland, we have been successful in increasing the average price of cars and the sales of EV's and hybrids has increased significantly. Unfortunately, our traditional core competence - the more affordable and smaller combustion engine cars - received too little attention, which was reflected in volume development in Finland.
In Sweden, the corrective measures have progressed, and the established control mechanisms are working. During the quarter, we made further major changes in the Swedish organization and ways of working, which led to significant temporary decline in the number of cars sold. The car related margins improved as a result of these changes. Despite the issues, we still believe that the situation will improve towards the end of the year.
In Germany, we are moving to the right direction, yet the third quarter performance was not on a satisfactory level. The margin per car developed in the right direction but the volume of cars sold was lower than in the previous year, partly due to the closing of showrooms during the quarter and partly due to staff shortages. Despite tightened controls, we unfortunately fell victim to a sourcing-related fraud incident in Germany. We continue to invest in the training of our sourcing personnel.
During the past quarter, we have continued the dedicated and systematic implementation of our omnichannel strategy. The cooperation agreement signed with Secto Automotive is a good example of systematic sourcing in larger batches and will help the lack of cars in Finland. The leasing cooperation, on the other hand, is a great addition to our service offer for B2B customers. Moreover, the showrooms transferred to us from Secto in Espoo and Vantaa will strengthen our position in the capital region. In addition, we have continued to optimize our showroom network and to upgrade our showrooms and online service to match our concept.
The measures to improve the efficiency and profitability of our operations have mainly progressed according to plan. The actions related to the showroom network and personnel are on target. The actions to reduce the car-related pre- and after costs have progressed, but the focus is on the turn of the year.
Altti Väisänen started as Director, Business Development, and a member of the Group Management Team in October, after the reporting period. Altti will focus on developing the car-related presales processes as well as on the company's strategy implementation and data activities. In addition, we acquired the Swedish Webcars Logistics AB in October. Webcars specializes in the purchase, logistics and export of used cars, and it has customers in several European countries. Kamux has also been a Webcars customer. Webcars has a proven track record of successful sourcing of cars in Sweden and their logistics concept has been proven to be functional and cost-effective, so this acquisition strengthens our competitiveness. Webcars will continue to serve its existing customers, and we believe that its volumes have significant growth potential.
I would like to once again express my warm thanks to all Kamux employees for their good work in a challenging market. I would also like to thank our customers and partners for their trust."
Outlook for the year 2024 (updated on October 14, 2024)
Kamux expects the adjusted operating profit for 2024 to be EUR 15-17 million.
Kamux lowered its outlook on October 10, 2024. Earlier Kamux expected its adjusted operating profit for 2024 to exceed its 2023 adjusted operating profit, which was EUR 18.0 million.
Significant events after the reporting period
On November 7, 2024, Kamux announced the Proposals of the Shareholders' Nomination Board to Kamux Corporation's Annual General Meeting 2025. The Shareholders' Nomination Board proposes to the Annual General Meeting, that of the current members of the Board of Directors, Juha Kalliokoski, Terho Kalliokoski, Maren Kroll, Kati Riikonen, Harri Sivula and Jaana Viertola-Truini be re-elected as members of the Board of Directors, and that Terho Kalliokoski be re-elected as Chairperson of the Board of Directors and Harri Sivula be re-elected as Vice Chairperson of the Board of Directors. Additionally the Shareholders' Nomination Board proposes that the annual compensation for both the Board of Directors and committee members remain unchanged.
On October 14, 2024, Kamux announced that it lowers its outlook for the year 2024 due to significantly lower than expected sales and the subsequent operating loss in Sweden in the third quarter. Kamux now expects the adjusted operating profit for 2024 to be EUR 15-17 million. Previously, Kamux expected its adjusted operating profit for 2024 to exceed its 2023 adjusted operating profit, which was EUR 18.0 million.
Financial reporting and AGM in 2025
The publication schedule for Kamux Corporation's financial reporting in 2025 is as follows:
- Financial Statements Bulletin 2024 February 20, 2025
- Interim Report for January-March 2025 May 13, 2025
- Half-Year Financial Report for January-June 2025 August 12, 2025
- Interim Report for January-September 2025 November 11, 2025
The Annual Report for 2024 including Financial Statements will be published on the week commencing April 21, 2025. The Annual General Meeting of Kamux Corporation is scheduled to be held on May 22, 2025.
News conference
News conference for investors, analysts and media will be held today, Friday, November 8, 2024, at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki at 11:00 EET. CEO Tapio Pajuharju and CFO Jukka Havia will present the Half Year Report.
The conference can be followed as a live webcast at https://kamux.videosync.fi/q3-2024
Participation by conference call:
You can access the teleconference by registering on the link below. After the registration you will be provided phone numbers and a conference ID to access the conference. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.
https://palvelu.flik.fi/teleconference/?id=50049837
For more information, please contact:
Tapio Pajuharju, CEO, tel. +358 50 577 4200
Jukka Havia, CFO, tel. +358 50 355 3757
Katariina Hietaranta, Head of Communications, Sustainability & Investor relations tel. +358 10 420 8831
Kamux Corporation
Communications
Kamux is a retail chain specialized in preowned cars and related integrated services that has grown rapidly. Kamux combines online shopping with an extensive showroom network to provide its customers with a great service experience anytime, anywhere. In addition to digital channels, the company has a total of 71 car showrooms in Finland, Sweden and Germany. Since its founding in Hämeenlinna, Finland, in 2003 the company has sold over 500,000 used cars, 68,257 of which were sold in 2023. Kamux's revenue in 2023 was EUR 1,002 million and its average number of employees was 885 in terms of full-time equivalent employees. Kamux Corporation is listed on Nasdaq Helsinki Ltd. For more information, please visit www.kamux.com
