Kamux Corporation | Financial Statement Release | February 20, 2025 at 09:00:00 EET
This is a summary of Kamux Corporation's Financial Statements Bulletin for January 1-December 31, 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.
October-December 2024
- Revenue decreased by -2.0%, totaling EUR 236.7 million (241.6)
- Gross profit decreased by -22.6% to EUR 20.2 million (26.1), or 8.5% (10.8) of revenue
- Adjusted operating profit (EBIT) decreased by -87.8% to EUR 0.7 million (5.5), or 0.3% (2.3) of revenue
- Operating result (EBIT) decreased by -114.4% to EUR -0.7 million (4.5), or -0.3% (1.9) of revenue
- The number of cars sold decreased by -9.0% to 14,890 cars (16,354)
- Like-for-like showroom revenue decreased by -6.1% (8.2)
- Basic and diluted earnings per share were EUR 0.03 (0.06)
- On October 29, 2024, Kamux acquired the entire share capital of the Swedish Webcars Logistics AB. Webcars Logistics AB specializes in the purchase, logistics and export of used cars. The acquired company is reported as part of Group functions
January-December 2024
- Revenue increased by 0.8%, totaling EUR 1,010.2 million (1,002.1)
- Gross profit decreased by -5.6% to EUR 96.8 million (102.5), or 9.6% (10.2) of revenue
- Adjusted operating profit (EBIT) decreased by -35.8% to EUR 11.6 million (18.0), or 1.1% (1.8) of revenue
- Operating profit (EBIT) decreased by -50.0% to EUR 7.9 million (15.8), or 0.8% (1.6) of revenue
- The number of cars sold decreased by -2.5% to 66,548 cars (68,257)
- Like-for-like showroom revenue decreased by -3.1% (2.9)
- Basic and diluted earnings per share were EUR 0.12 (0.24)
- The Board of Directors proposes a dividend of maximum EUR 0.07 per share (0.17) to be distributed for the year 2024. The dividend is proposed to be paid in one installment in autumn 2025. The proposed dividend is 58% of the profit per share for the fiscal year 2024 (71).
Key Figures
| EUR million | 10-12/2024 | 10-12/2023 | Change, % | 1-12/2024 | 1-12/2023 | Change, % |
| Revenue | 236.7 | 241.6 | -2.0% | 1,010.2 | 1,002.1 | 0.8% |
| Gross profit | 20.2 | 26.1 | -22.6% | 96.8 | 102.5 | -5.6% |
| as percentage of revenue, % | 8.5% | 10.8% | 9.6% | 10.2% | ||
| Operating result (EBIT) | -0.7 | 4.5 | -114.4% | 7.9 | 15.8 | -50.0% |
| as percentage of revenue, % | -0.3% | 1.9% | 0.8% | 1.6% | ||
| Adjusted operating profit* | 0.7 | 5.5 | -87.8% | 11.6 | 18.0 | -35.8% |
| as percentage of revenue, % | 0.3% | 2.3% | 1.1% | 1.8% | ||
| Revenue from integrated services | 13.7 | 15.4 | -10.8% | 55.2 | 53.0 | 4.3% |
| as percentage of revenue, % | 5.8% | 6.4% | 5.5% | 5.3% | ||
| Number of cars sold | 14,890 | 16,354 | -9.0% | 66,548 | 68,257 | -2.5% |
| Gross profit per sold car, EUR | 1,358 | 1,597 | -15.0% | 1,454 | 1,502 | -3.2% |
| Sales growth of like-for-like showrooms, % | -6.1% | 8.2% | -3.1% | 2.9% | ||
| Net debt | 74.2 | 53.8 | 38.1% | |||
| Inventories | 131.0 | 117.2 | 11.7% | |||
| Inventory turnover, days | 55.4 | 46.9 | 18.2% | |||
| Capital expenditures | 2.1 | 0.6 | 250.8% | 4.3 | 1.8 | 139.7% |
| Average number of employees during the period | 904 | 885 | 2.1% | |||
| Return on equity (ROE), % | 4.3% | 8.7% | ||||
| Return on investment (ROI), % | 3.9% | 6.6% | ||||
| Equity ratio, % | 48.0% | 51.9% | ||||
| Earnings per share, basic and diluted, EUR | 0.03 | 0.06 | -43.0% | 0.12 | 0.24 | -51.4% |
*) Operating profit adjusted for special items related to strategic planning and consulting, legal processes, own real estate operations and other items, totaling EUR 1.3 million for 10-12/2024 and EUR 3.6 million for 1-12/2024 (10-12/2023: EUR 1.0 million and 1-12/2023: EUR 2.2 million including also taxes from previous financial years).
CEO Tapio Pajuharju:
"The last quarter of 2024 was extremely challenging for Kamux. Competition in the automotive industry intensified significantly, and there were substantial price reductions and interest rate offers. At the group level, we sold approximately 1,500 cars fewer during the fourth quarter than in the comparison period. This was mainly due to the challenging purchasing market, which resulted in our car selection not sufficiently meeting demand, particularly for affordable combustion engine cars. Additionally, we had fewer showrooms compared to the comparison period. In terms of value, our development remained more stable and the sales of ancillary products developed favorably. However, the overall situation was difficult, and we had to lower our outlook for 2024 for the second time.
The entire industry is undergoing a major transformation and, due to the prolonged weak sales of new cars, used car sales have become an increasingly important part of new car retailers' business in all our operating countries. In addition, a growing number of consumers sell their cars via commercial platforms. These changes in market dynamics have intensified competition in both sales and purchasing. In addition, there were an exceptionally high number of highly aggressive offers on both new and used cars in the markets in the last quarter of 2024, as retailers sought to clear their inventories. In addition to exceptional pricing offers, there were also many extremely attractive financing offers available. The weak sales of new cars also reduced the number of vehicles entering the used car market, tightening the purchasing market and making it particularly difficult to buy more affordable combustion engine cars at a normal margin expectation.
Market demand shifted even more strongly towards affordable combustion engine cars in the last quarter of the year. Purchasing these cars at our normal margin levels proved more difficult than expected, and our selection did not adequately meet this demand. Furthermore, we chose not to participate in the aggressive interest rate campaigns seen at the end of the year in Finland and especially in Sweden. In Germany and Sweden, fourth-quarter sales were also weakened by a smaller number of showrooms than in the comparison period.
The Group's revenue decreased by 2% compared to the last quarter of the previous year, mainly due to negative development in Sweden. In Finland, revenue grew as the average selling price of cars increased, driven in part by the business transfer between Kamux and Secto Automotive, which was completed at the end of October 2024. Revenue from integrated services decreased as the number of cars sold decreased. The gross margin decreased from the comparison period in all operating countries, primarily due to the challenging purchasing market. In addition, increased maintenance and repair costs weakened the gross margin. The Group's adjusted operating profit for the last quarter was EUR 0.7 million (-88%), and for the full year EUR 11.6 million (-36%). Operating cash flow was EUR 14.8 million (EUR 27.6 million).
In Finland, we have successfully increased the average selling price of cars and grown the sales of EV's and hybrids. In Sweden, the corrective actions were completed, and Johan Kempas, who has an extensive career in the automotive industry, started as Managing Director of Kamux Sweden on January 1, 2025. There is still significant variation in showroom performance, and we aim to accelerate their development through strong onboarding and training. We are also critically reviewing our showroom network. We have invested in strengthening our purchasing capabilities, and the acquisition of Webcars Logistics also supports purchasing operations in Sweden. Sweden is an important market for us, and we believe that it is possible to make the Swedish business profitable.
With the increasingly competitive landscape in the car business, the importance of experienced and competent personnel has become even more pronounced. At the end of 2024, we completed three key recruitments. In early January 2025, Sebastian Janik started as Group Purchasing Director, also overseeing Kamux's purchasing operations in Germany. At the same time, Michael Ungerer took on the role of Head of Sales at Kamux Germany, and in Finland, Joni Tuominen started as Chief Operating Officer and Development Officer of Kamux Finland. In February 2025, we announced the appointment of Joanna Clark as Kamux's new Chief People Officer. Joanna will start at Kamux in mid-May. In addition, Juha Kalliokoski will start as the Group's Chief Operating Officer on March 1, 2025. He will also continue as a member of the Board of Directors.
The development of our showroom network and customer experience has progressed in the right direction and our key customer satisfaction metric, NPS, has risen to 51 on an annual basis. The measures to improve efficiency and profitability that were begun during the second quarter have largely progressed according to plan. Cost-saving initiatives related to the showroom network and personnel are on track. Actions to reduce the car-related pre- and after-costs have advanced, but the transfer of volumes has taken longer than expected and will have a more significant impact during the third quarter of 2025.
Due to the significant change in the market we are further accelerating the implementation of our strategy. We have already invested significantly in resources for purchasing, and in addition we are centralizing and tightening our processes, especially in terms of pricing, managing our car selection, and inventory management.
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 2025
Kamux expects its adjusted operating profit for 2025 to improve from the previous year.
Significant events after the reporting period
On February 19, 2025 Kamux announced that Juha Kalliokoski has been appointed as the company's Chief Operating Officer (COO) and a member of the Group Management team as of March 1, 2025. As Chief Operating Officer Kalliokoski will be responsible for Kamux's purchasing, sales and inventory management. Kalliokoski will continue on the Board of Directors of Kamux Corporation, but he will no longer be involved in committee work. Kalliokoski has been a member of the Audit Committee and the Personnel and Remureration Committee. In its meeting on February 19, 2025, the Board of Directors decided to appoint Harri Sivula (chairperson), Jaana Viertola-Truini, and Kati Riikonen as members of the Audit Committee. To the Personnel and Remuneration Committee the Board of Directors appointed Maren Kroll (chairpoerson), Harri Sivula and Antti Mäkelä.
On February 13, 2025, Kamux announced that Joanna Clark has been appointed as Kamux's Chief People Officer and a member of the Group Management Team as of May 15, 2025.
On January 23, 2025, Kamux announced that the Board of Directors of Kamux Corporation had resolved to establish a performance matching share plan for the key employees of the Group. The performance matching share plan 2025-2029 includes three performance periods, covering the financial years 2025-2027, 2026-2028 and 2027-2029. The prerequisite for participation in the plan and receiving the reward is an allocation of freely transferable Kamux's shares held by the key employee to the plan or that the key employee acquires Kamux's shares in a number determined by the Board. Furthermore, payment of the reward is based on the participant's valid employment contract upon reward payment. The performance criteria of the first performance period are Total Shareholder Return, Earnings per Share and an ESG criterion. The target group of the first performance period 2025-2027 consists of approximately 40 key employees, including the members of the Management Team and the CEO. The value of the rewards to be paid on the basis of the first performance period corresponds to an approximate maximum total of 980,000 shares of Kamux (estimated using the closing share price of January 15, 2025 2.72 euros), including also the proportion to be paid in cash. The potential rewards from the plan will be paid within five months from the end of each performance period. The Board of Directors also resolved on the commencement and details of the second matching period of the Green Lions matching share plan, which was established on January 22, 2024, for the recognized rising key employees of the Group. The second matching period covers the financial years 2025-2027.
Financial reporting and AGM in 2025
Publication schedule for Kamux Corporation's financial reporting in 2025 is as follows:
Interim Report for January-March 2025 May 13, 2025
Half-Year 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 on Thursday, February 20, 2025, at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki at 11:00 EET. CEO Tapio Pajuharju and CFO Jukka Havia will present the Results.
The conference can be followed as a live webcast at https://kamux.events.inderes.com/q4-2024
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=50051403
For further 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 and Investor relations, tel. +358 10 420 8831
Kamux Corporation
Communications
Kamux is a retail chain specialized in used 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 69 car showrooms in Finland, Sweden and Germany. Since its founding in Hämeenlinna, Finland, in 2003 the company has sold over 500,000 used cars, 66,548 of which were sold in 2024. Kamux's revenue in 2024 was EUR 1,010 million and its average number of employees was 904 in terms of full-time equivalent employees. Kamux Corporation is listed on Nasdaq Helsinki Ltd. For more information, please visit www.kamux.com
