Kamux Corporation’s Interim Report for January 1–September 30, 2023: Revenue grew and adjusted operating profit increased significantly during the third quarter

HÄMEENLINNA, Finland, Nov. 10, 2023 /PRNewswire/ — This is a summary of Kamux Corporation’s Interim Report for January 1–September 30, 2023. The complete report is attached to this release and is also available at the company website at 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 increased by 7.9%, totaling EUR 282.4 million (261.7)Gross profit increased by 21.5% to EUR 29.4 million (24.2), or 10.4% (9.2) of revenueAdjusted operating profit (EBIT) increased by 36.6% to EUR 7.1 million (5.2), or 2.5% (2.0) of revenueOperating profit (EBIT) increased by 31.0% to EUR 6.8 million (5.2), or 2.4% (2.0) of revenueThe number of cars sold increased by 14.2% to 19,364 cars (16,952)Like-for-like showroom revenue growth was 8.2% (0.5)Basic and diluted earnings per share were EUR 0.12 (0.09)

January–September in brief

Revenue increased by 2.0%, totaling EUR 760.5 million (745.8)Gross profit increased by 4.8% to EUR 76.4 million (72.9), or 10.0% (9.8) of revenueAdjusted operating profit (EBIT) decreased by -18.8% to EUR 12.5 million (15.4), or 1.6% (2.1) of revenueOperating profit (EBIT) decreased by -26.6% to EUR 11.3 million (15.4), or 1.5% (2.1) of revenueThe number of cars sold increased by 7.6% to 51,903 cars (48,241)Like-for-like showroom revenue growth was 1.3% (4.6)Basic and diluted earnings per share were EUR 0.18 (0.27)Tapio Pajuharju assumed his role as CEO of Kamux on June 1, 2023. Kamux’s founder and previous CEO Juha Kalliokoski continues as a member of the Company’s Board of Directors.

Key Figures

CEO Tapio Pajuharju:

“The favorable momentum in the used car market continued during the third quarter of 2023 despite the challenging general market sentiment and the market developed positively in all of Kamux’s operating countries. However, the total used car market was still clearly below the levels of 2021 in all of Kamux’s operating countries.

In terms of the number of cars sold, the past quarter was an all-time high in the entire 20-year history of Kamux and more than 19,000 cars found a new owner through Kamux. The milestone of 500,000 sold cars was also passed during the quarter. The sales development in terms of cars sold was particularly strong in Finland, where July and August were the two best sales months in the history of Kamux. On top of this, the month of September was the best September ever in terms of the number of cars sold in Finland. I would like to pass my thanks to our customers and to our professional and motivated team at Kamux!

With a strong 14% increase in the number of cars sold, our third quarter revenue increased by 8% and was EUR 282 million. I am particularly pleased with the good sales growth of like-for-like showrooms. During the year, used car prices have remained stable but are still at a lower level than during the previous year. The sourcing market was normal in the third quarter, with the exception of Sweden. Due to the challenging sourcing market, Kamux Sweden still experienced some shortage of cars during July–August. However, at the end of the reporting period, a substantial change took place in the Swedish market and the supply improved significantly. In Germany, the first operating months of the Düren showroom, which was opened in the spring, have progressed very well and according to plan. During the quarter, we improved inventory management in all operating countries. However, the easing of the purchasing market became visible in the somewhat higher than expected end-of-quarter inventory and in the inventory turnover reported for the quarter.

The gross margin developed very positively in Finland and Sweden as the systematic work done to improve profitability paid off: we succeeded in improving the gross margin both in absolute terms as well as in relative terms. In Germany, profitability was unfavorably impacted by significant investments in car processing and customer service; this we were not able to fully transfer to sales prices. The sales incentives following the good development in the number of cars sold and car margin are visible in increased personnel costs hurting the operating profit. However, the adjusted operating profit for the third quarter developed favorably in the right direction and amounted to EUR 7.1 million. In addition, cash flow from operating activities was strong.

Despite the favorable momentum in the used car market, inflation, high interest rates and low consumer confidence were clearly visible during the third quarter. Consumers were looking for more affordable and economical cars, and this is also reflected in the lower average price of the cars we sold. Changes in the power sources of cars also affect the market, and many consumers are uncertain with their decisions and postpone the purchase of a car while waiting for more information on the development of EVs and EV prices. A significant number of new EV brands have also entered the market especially in Sweden and Finland. The electrification of the car fleet progresses also in the used car market, and the number of plug-in hybrids and EV’s sold by Kamux increased by 51% compared to the third quarter of 2022.

At the end of October, we reached the 20-year anniversary of Kamux. The unique business model focused on selling used cars, envisioned and developed by Juha Kalliokoski, has proven its strength with more than half a million cars sold, and it is a pleasure to develop this further with an increasing speed. The maintenance measures for our concept have progressed according to plan, and the ongoing strategy update work is on schedule.”

Outlook for the year 2023 (unchanged)

In 2023, Kamux expects its adjusted operating profit to grow from the year 2022, when the adjusted operating profit was EUR 17.5 million.

Financial targets for 2021–2023

The Company’s medium-term financial targets are to increase revenue by over 20% annually, to increase adjusted operating profit annually, and to reach an adjusted operating profit margin of over 3.5% and a return on equity (ROE) of over 25%. Additionally, the Company’s target is to distribute dividends of at least 25% of net profits. The Board of Directors of the Company estimates annually the balance between dividends to be distributed and funds to be used for Kamux’s growth, and based on this assessment, makes a proposal on the amount of dividend to be distributed, which may for any single year differ significantly from the target level set in the dividend policy.

Kamux will update its strategy and financial targets at the beginning of 2024.

Significant events after the reporting period

On October 9, 2023, Kamux announced that Aino Hökeberg was appointed as Kamux Corporation’s Chief Marketing and Concept Officer, responsible for marketing and business concept, and a member of the Group Management Team as of January 1, 2024.

Kamux Corporation’s financial reporting and AGM in 2024

Publication schedule for Kamux Corporation’s financial reporting in 2024 is as follows:

Financial Statements Bulletin 2023                                         March 1, 2024Interim Report for January—March 2024                                May 17, 2024Half-Year Report for January—June 2024                              August 16, 2024Interim Report for January—September 2024                        November 8, 2024

The Annual Report for 2023 including Financial Statements will be published on the week commencing March 25, 2024.

The Annual General Meeting of Kamux Corporation is scheduled to be held on April 18, 2024.

News conference

News conference for investors, analysts and media will be held on Friday, November 10, 2023, at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki at 11:00 EET in English. CEO Tapio Pajuharju and CFO Marko Lehtonen will present the Interim Report.

The conference can be followed as a live webcast at https://kamux.videosync.fi/2023-q3-results

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=10010323

For further information, please contact:
CEO Tapio Pajuharju, tel. +358 50 577 4200
CFO Marko Lehtonen, tel. +358 50 575 2006
Head of Communications & IR Katariina Hietaranta, tel. +358 50 557 6765
Kamux Corporation
Communications

Kamux is a retail chain specializing in the sale of 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 77 car showrooms in Finland, Sweden and Germany. Since its founding in Hämeenlinna, Finland, in 2003 the company has sold over 500,000 used cars, 62,922 of which were sold in 2022. Kamux’s revenue in 2022 was EUR 968.7 million and its average number of employees was 883 in terms of full-time equivalent employees. Kamux Corporation is listed on Nasdaq Helsinki Ltd. For more information, please visit www.kamux.com

The following files are available for download:

View original content:https://www.prnewswire.co.uk/news-releases/kamux-corporations-interim-report-for-january-1september-30-2023-revenue-grew-and-adjusted-operating-profit-increased-significantly-during-the-third-quarter-301984418.html