Kamux Oyj: Kamux Corporation's Interim Report for January-September 2017
Kamux Corporation Interim Report November 23, 2017 09:00
Kamux Corporation's Interim Report for January-September 2017
KAMUX'S GROWTH ACCELERATED FROM FIRST HALF
The figures in parenthesis refer to the comparison period, i.e. the same period in the previous year, unless otherwise mentioned.
Third quarter in brief
- The number of cars sold increased by 12.7 % to 11,083 cars (9,833)
- Revenue increased by 14.5 %, totaling EUR 122.1 million (106.7)
- Gross profit increased by 13.7 % to EUR 15.3 million (13.5) or 12.5 % (12.6) of revenue
- Adjusted operating profit (EBIT) increased by 6.9 % to EUR 6.2 million (5.8), or 5.1 % (5.4) of revenue
- Operating profit (EBIT) increased by 11.3 % to EUR 6.1 million (5.5), or 5.0 % (5.1) of revenue
- Earnings per share were EUR 0.12 (0.11)
- Sweden's operating profit (EBIT) increased to EUR 0.4 million (0.0), or 2.1 % (0.0) of revenue
January-September in brief
- The number of cars sold increased by 11.0 % to 30,663 cars (27,614)
- Revenue increased by 11.0 %, totaling EUR 340.6 million (306.9)
- Gross profit increased by 8.0 % to EUR 40.8 million (37.8) or 12.0 % (12.3) of revenue
- Adjusted operating profit (EBIT) increased by 2.3 % to EUR 15.3 million (15.0), or 4.5 % (4.9) of revenue
- Operating profit (EBIT) decreased by 3.4 % to EUR 13.0 million (13.4), or 3.8 % (4.4) of revenue
- Earnings per share were EUR 0.25 (0.26)
CEO Juha Kalliokoski:
"Our growth accelerated from the first half and we achieved quarterly records in revenue, operating profit and number of cars sold. In accordance with our strategy, we continue our journey to become the leading European retail chain specializing in used cars.
I am particularly pleased that the positive trend continued in Sweden. In the third quarter, Sweden made a positive operating profit. In addition, we returned to growth in Sweden and stabilized our operating model in the segment.
Kamux's growth in Germany, one of the largest markets in Europe, continued strong. We will continue to focus on uniform implementation of the Kamux concept and growing our presence in Northern Germany. Oliver Michels will start as country director of Germany at the beginning of next year. Mr. Michels' strong expertise in retail will support Kamux's growth in Germany.
There was a positive trend in the economy and in our operating environment in Finland and the market situation improved from the first half of the year. However, inventories in the industry were higher than average at the end of the third quarter. There was still uncertainty among consumers due to the public car tax and fuel discussions. We are pleased with the third quarter in Finland given the challenges in the operating environment. We estimate that our development in Finland was clearly better than the market.
Kamux achieved record revenue in integrated services. Like-for-like showroom sales growth developed favorably compared to the first half of the year, but were still at an unsatisfactory level. We continue to take measures to increase sales of comparable stores.
In AutoBild Finland's Service1 purchase study published in September, Kamux was recognized as the best used car company. The research was carried out using the mystery shopping method. The result is great feedback of our sales staff's daily work in customer service."
Outlook and financial targets
Kamux does not provide a short term outlook. In the medium term, the company's targets are to increase revenue to at least EUR 700 million with an operating profit margin of 4-5 % in 2019 and reaching at least 5 % operating profit margin in the long term.
Key figures
| EUR million | 7-9/ 2017 | 7-9/ 2016 | Change, % | 1-9/ 2017 | 1-9/ 2016 | Change, % | 1-12/ 2016 |
| Revenue | 122.1 | 106.7 | 14.5 % | 340.6 | 306.9 | 11.0 % | 404.8 |
| Gross profit | 15.3 | 13.5 | 13.7 % | 40.8 | 37.8 | 8.0 % | 49.2 |
| as percentage of revenue, % | 12.5 % | 12.6 % | 12.0 % | 12.3 % | 12.2 % | ||
| Operating profit (EBIT) | 6.1 | 5.5 | 11.3 % | 13.0 | 13.4 | -3.4 % | 15.7 |
| as percentage of revenue, % | 5.0 % | 5.1 % | 3.8 % | 4.4 % | 3.9 % | ||
| Adjusted operating profit* | 6.2 | 5.8 | 6.9 % | 15.3 | 15.0 | 2.3 % | 18.0 |
| as percentage of revenue, % | 5.1 % | 5.4 % | 4.5 % | 4.9 % | 4.4 % | ||
| Revenue from integrated services | 5.8 | 5.0 | 14.7 % | 16.8 | 14.0 | 19.3 % | 19.3 |
| as percentage of revenue, % | 4.7 % | 4.7 % | 4.9 % | 4.6 % | 4.8 % | ||
| Number of cars sold | 11,083 | 9,833 | 12.7 % | 30,663 | 27,614 | 11.0 % | 36,290 |
| Gross profit per sold car, EUR | 1,381 | 1,369 | 0.9 % | 1,332 | 1,369 | -2.7 % | 1,357 |
| Sales growth of like-for-like showrooms, % | -3.2 % | 6.1 % | -7.2 % | 18.6 % | 12.2 % | ||
| Net debt | 8.7 | 22.3 | -61.1 % | 30.9 | |||
| Inventories | 54.6 | 42.9 | 27.2 % | 47.9 | |||
| Inventory turnover, days | 45.9 | 39.6 | 15.9 % | 43.1 | |||
| Capital expenditures | 0.2 | 0.3 | -8.0 % | 0.8 | 0.8 | -4.2 % | 2.1 |
| Average number of employees during the period | 432 | 379 | 14.0 % | 343 | |||
| Return on equity (ROE), % | 24.9 % | 49.3 % | 43.8 % | ||||
| Return on capital employed (ROI), % | 16.8 % | 25.2 % | 22.5 % | ||||
| Equity ratio, % | 56.8 % | 41.2 % | 36.9 % | ||||
| Earnings per share, basic, EUR | 0.12 | 0.11 | 11.2 % | 0.25 | 0.26 | -3.8 % | 0.29 |
* Operating profit adjusted for the costs related to the initial public offering, special items related to strategy planning, strategy implementation and geographical expansion, totaling EUR 0.1 million for the third quarter of 2017 (7-9/2016: EUR 0.3 million) and totaling EUR 2.3 million for 1-9/2017 (1-9/2016: EUR 1.5 million).
Publication schedule for financial reporting in 2018
Kamux will publish its Financial Statements and Interim Reports in 2018 as follows:
8 March 2018: Kamux Corporation will publish its Financial Statements Bulletin 2017.
24 May 2018: Kamux Corporation will publish its Interim Report for January-March 2018.
23 August 2018: Kamux Corporation will publish its Half-Year Financial Report for January-June 2018.
22 November 2018: Kamux Corporation will publish its Interim Report for January-September 2018.
The Annual Report for 2017 including Financial Statements will be published on week 14/2018.
The Annual General Meeting of Kamux Corporation is scheduled to be held on Thursday 26 April 2018.
Interim Report conference call
Kamux will hold an Interim Report conference call today November 23, 2017 at 14:00 (Finnish time) in Finnish and the English part is expected to begin around 14:30. The Interim Report will be presented by CEO Juha Kalliokoski and CFO Tapio Arimo. Participants are requested to call in and register a few minutes prior to the start of the conference call at:
https://praecomspark.webex.com/praecomspark/onstage/g.php?MTID=ef672859faaf0752c00bcd2dfc7611883
The numbers are: UK call-in toll number: +44-203-478-5289, Finland toll: +358 9 3158 4349 and Sweden toll: +46 8 5051 3563.
Global call-in numbers:
https://praecomspark.webex.com/praecomspark/globalcallin.php?serviceType=EC&ED=600577647&tollFree=0
The conference access code is: 848 329 467.
In Hämeenlinna on November 23, 2017
Kamux Corporation
The Board of Directors
For more information:
Juha Kalliokoski, CEO
Tel. +358 50 544 5538
Tapio Arimo, CFO
Tel. +358 40 829 6452
Satu Heikkilä, Director of Marketing and Communications
Tel. +358 400 629 337
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