Kamux Corporation’s Half Year Financial Report January 1-June 30, 2022: Kamux increased its revenue by +7.9% in a challenging market environment, but adjusted operating profit decreased significantly
Kamux Corporation Half Year Financial Report 12.8.2022 at 09:00
Kamux Corporation’s Half Year Financial Report for January 1-June 30, 2022: Kamux increased its revenue by +7.9% in a challenging market environment, but adjusted operating profit decreased significantly
This is a summary of Kamux Corporation’s Half Year Financial Report for January 1-June 30, 2022. 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.
April-June in brief
- Revenue increased by 7.9%, totaling EUR 246.8 million (228.8)
- Gross profit increased by 19.2% to EUR 24.5 million (20.5), or 9.9% (9.0) of revenue
- Adjusted operating profit (EBIT) decreased by -33.6% to EUR 4.5 million (6.8), or 1.8% (3.0) of revenue
- Operating profit (EBIT) increased by 59.8% to EUR 4.5 million (2.8), or 1.8% (1.2) of revenue
- The number of cars sold decreased by -6.4% to 15,688 cars (16,760)
- Like-for-like showroom revenue growth was 5.5% (37.9)
- Basic and diluted earnings per share were EUR 0.07 (0.04)
January-June in brief
- Revenue increased by 10.4%, totaling EUR 484.1 million (438.6)
- Gross profit increased by 11.5% to EUR 48.7 million (43.7), or 10.1% (10.0) of revenue
- Adjusted operating profit (EBIT) decreased by -18.4% to EUR 10.2 million (12.4), or 2.1% (2.8) of revenue
- Operating profit (EBIT) increased by 19.6% to EUR 10.2 million (8.5), or 2.1% (1.9) of revenue
- The number of cars sold decreased by -5.2% to 31,289 cars (33,002)
- Like-for-like showroom revenue growth was 7.0% (24.5)
- Basic and diluted earnings per share were EUR 0.18 (0.12)
Key figures
|
EUR million |
4-6/ 2022 |
4-6/ 2021 |
Change, % |
1-6/ 2022 |
1-6/ 2021 |
Change, % |
1-12/ 2021 |
|
Revenue |
246.8 |
228.8 |
7.9% |
484.1 |
438.6 |
10.4% |
937.4 |
|
Gross profit |
24.5 |
20.5 |
19.2% |
48.7 |
43.7 |
11.5% |
101.3 |
|
as percentage of revenue, % |
9.9% |
9.0% |
|
10.1% |
10.0% |
|
10.8% |
|
Operating profit (EBIT) |
4.5 |
2.8 |
59.8% |
10.2 |
8.5 |
19.6% |
28.0 |
|
as percentage of revenue, % |
1.8% |
1.2% |
|
2.1% |
1.9% |
|
3.0% |
|
Adjusted operating profit* |
4.5 |
6.8 |
-33.6% |
10.2 |
12.4 |
-18.4% |
31.4 |
|
as percentage of revenue, % |
1.8% |
3.0% |
|
2.1% |
2.8 % |
|
3.3% |
|
Revenue from integrated services |
12.8 |
9.9 |
29.4% |
24.6 |
19.3 |
27.5% |
42.8 |
|
as percentage of revenue, % |
5.2% |
4.3% |
|
5.1% |
4.4% |
|
4.6% |
|
Number of cars sold |
15,688 |
16,760 |
-6.4% |
31,289 |
33,002 |
-5.2% |
68,429 |
|
Gross profit per sold car, EUR |
1,559 |
1,225 |
27.3% |
1,557 |
1,324 |
17.6% |
1,480 |
|
Sales growth of like-for-like showrooms, % |
5.5% |
37.9% |
|
7.0% |
24.5% |
|
19.1% |
|
Net debt |
|
|
|
85.6 |
76.2 |
12.3% |
70.4 |
|
Inventories |
|
|
|
143.5 |
122.8 |
16.9% |
132.8 |
|
Inventory turnover, days |
|
|
|
55.4 |
46.5 |
19.1% |
49.3 |
|
Capital expenditures |
0.5 |
2.2 |
-77.5% |
1.9 |
3.4 |
-45.8% |
7.4 |
|
Average number of employees during the period |
|
|
|
874 |
820 |
6.6% |
848 |
|
Return on equity (ROE), % |
|
|
|
22.2% |
22.0% |
|
19.5% |
|
Return on investment (ROI), % |
|
|
|
12.6% |
13.6% |
|
12.5% |
|
Equity ratio, % |
|
|
|
44.5% |
39.3% |
|
47.3% |
|
Earnings per share, basic, EUR |
0.07 |
0.04 |
96.2% |
0.18 |
0.12 |
44.0% |
0.49 |
|
Earnings per share, diluted, EUR |
0.07 |
0.04 |
96.5% |
0.18 |
0.12 |
44.2% |
0.49 |
* Operating profit adjusted for special items related to legal processes and taxes from previous financial years, totaling EUR -0.1 million for the second quarter of 2022 and totaling EUR -0.1 million for 1-6/2022 (4-6/2021: EUR 3.9 million, 1-6/2021: EUR 3.9 million and 1-12/2021: EUR 3.4 million).
CEO Juha Kalliokoski:
“During the second quarter we succeeded in increasing our market share in all of our operating countries despite a challenging market environment. Fluctuation in the number of cars sold was remarkably high in many countries, but our unit sales decreased less than the market. The war in Ukraine as well as the accelerating inflation, particularly the sharply increased fuel prices, weakened consumer confidence and the demand for used cars decreased very strongly. In addition, we succeeded in increasing our revenue which is our most important goal. Revenue grew by 7.9%, and like-for-like showroom sales grew by 5.5%. Sales of integrated services developed very well, but margin development per car in Finland and Sweden was not satisfactory.
As during the first quarter, the reduced demand was directed particularly towards electric and hybrid cars, and regarding combustion engine cars, towards low-consumption models. In order to meet the change in demand, we took active measures to address our inventory of cars for sale and we expect to continue this work. Given the continued limited availability of used cars and the tough purchasing market for the most popular models, we succeeded well in our purchasing operations and the number of hybrid and electric cars we sold increased by almost 38% compared to Q2 of 2021.
Despite the challenging market environment, we continued to invest in growth in accordance with our strategy. In Finland, two showrooms moved to larger premises, and in Sweden we opened one new showroom and announced two new showrooms to be opened in the fall. In Finland, we also started a strong brand marketing campaign at the end of the quarter to further boost sales.
Furthermore, we invested in growing the organization’s capabilities and I'm happy to share that with the appointment of Jarkko Lehtismäki as Chief Digital Officer the renewal and strengthening of the Group Management Team initiated in January is now complete.
I would like to thank all Kamux employees for their determined work for the benefit of the company and our customers also during this challenging quarter.”
Outlook for the year 2022 (Updated)
Kamux lowered its financial guidance for full-year 2022 revenue and operating profit on August 11, 2022. According to the updated outlook, in 2022 Kamux expects its revenue to be over EUR 1,000 million. The company expects its adjusted operating profit to be approximately EUR 23-30 million. Previously, Kamux expected its revenue to be at least EUR 1,100 million and adjusted operating profit to increase from the previous year.
Although Kamux’s business is not exposed to immediate Russia-related risks, the war in Ukraine and its effects have weakened consumer confidence. This has led to a strong contraction in the demand for used cars in all Kamux’s operating countries from March 2022 onwards. The weakened demand and the measures taken to address the inventory to match the current demand have also had a negative impact on Kamux’s profitability.
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 dividends to be distributed, which may for any single year differ significantly from the target level set in the dividend policy.
Significant events after the reporting period
On August 11, 2022 Kamux published a profit warning and lowered its guidance on full-year 2022 revenue and operating profit. The rationale for updating the outlook is the weakened consumer confidence caused by the war in Ukraine and its effects. This has led to a stronger than anticipated contraction in the demand for used cars in all Kamux’s operating countries from March 2022 onwards. The weakened demand and the measures taken to address the inventory to match the current demand have also had a negative impact on Kamux’s profitability.
Kamux’s updated outlook for 2022 is as follows: In 2022, Kamux expects its revenue to be over EUR 1,000 million. The company expects its adjusted operating profit to be approximately EUR 23-30 million.
Previously, Kamux expected its revenue to be at least EUR 1,100 million and adjusted operating profit to increase from the previous year.
News conference
News conference for investors, analysts and media will be held today on Friday, August 12, 2022 at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki at 11:00 EET in English, and at 12:00 noon EET in Finnish. CEO Juha Kalliokoski and CFO Marko Lehtonen will present the Half Year Report.
The conference can be followed as a live webcast at https://kamux.videosync.fi/2022-q2-results (in English) and https://kamux.videosync.fi/2022-q2-tulos (in Finnish).
Participation by conference call:
Finland Toll: +358 981710310
Sweden Toll: +46 856642651
United Kingdom Toll: +44 3333000804
United States Toll: +1 6319131422
PIN: 61465702#
Publication schedule for financial reporting in 2022
Publication schedule for Kamux Corporation’s financial reporting in 2022:
November 18, 2022: Kamux Corporation will publish its Interim Report for January-September 2022
For further information, please contact:
CEO Juha Kalliokoski, tel. +358 40 185 8633
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 78 car showrooms in Finland, Sweden and Germany. Since its founding, the company has sold over 400,000 used cars, 68,429 of which were sold in 2021. Kamux’s revenue reached EUR 937.4 million in 2021. In 2021, Kamux’s average number of employees was 848 in terms of full-time equivalent employees. Kamux Corporation is listed on Nasdaq Helsinki Ltd.