Kamux (KAMUX) Q1 2025 earnings summary

Executive summary

• Revenue declined 3.4% year-over-year to EUR 232.6 million, with significant drops in gross and adjusted operating profit, mainly due to weak performance in Sweden and lower car margins.

• Adjusted operating profit fell 171.6% to EUR -1.9 million, or -0.8% of revenue, and net income was EUR -4.0 million.

• Number of cars sold decreased 8.9% to 14,694, with demand shifting to lower-priced combustion engine cars and all countries experiencing declines.

• Integrated services revenue remained stable at EUR 13.2 million, 5.7% of total revenue, and cash flow improved by selling less optimal inventory.

• Group-level Net Promoter Score reached 60, meeting long-term customer satisfaction targets, with Finland leading.

Financial highlights

• Gross profit dropped 25.6% to EUR 18.1 million due to lower volumes and inventory management actions.

• Cash flow from operating activities improved to EUR 22.0 million, mainly due to inventory reduction.

• Return on equity was -0.6%; equity ratio stood at 44.8%.

• Basic earnings per share was EUR -0.10.

• Inventory turnover increased to 53.1 days.

Outlook and guidance

• Adjusted operating profit for 2025 is expected to improve from the previous year, with management confident in seasonality, margin improvements, and efficiency programs.

• Management expects Q2 and Q3 to be stronger due to traditional seasonality and recent corrective actions.

• Long-term targets include 100,000 cars sold annually, EUR 1.5 billion revenue, and a 4% adjusted operating profit margin.

• Risks are elevated due to the soft Q1, but management believes targets are achievable.