Kamux (KAMUX) Q2 2024 earnings summary

Executive summary

• Q2 revenue declined 0.9% to €252.6M, mainly due to underperformance in Sweden, while Finland and Germany showed stable or improved growth; profitability was pressured by tight sourcing markets and inflated car-related costs.

• Adjusted operating profit dropped 41.3% to €2.7M in Q2, with margin pressures and lower volumes in Sweden; gross profit fell 6.1% to €24.7M.

• Integrated services and adjacent products (e.g., Kamux Plus, tire sales) contributed positively, with revenue from integrated services up 9.2% to €13.6M, but could not fully offset cost inflation.

• Store network optimization continued, with closures in Sweden and Germany and new openings in Finland and Germany; upgraded stores in Finland and Germany performed well.

• Management and leadership changes occurred, particularly in Sweden, to address operational and team integration issues.

Financial highlights

• Revenue for Q2 was flat year-over-year at €252.6M, with a 3.2% growth for H1 to €493.4M; Swedish performance was a key drag.

• Adjusted operating profit for Q2 was €2.7M (down 41.3%), and for H1 was €5.4M (flat); operating profit dropped by 40% in Q2.

• Gross margin for Q2 was 9.8% (down from 10.3%); adjusted EBIT margin dropped to 1.1% (from 1.8%).

• EPS for Q2 was €0.00; cash flow from operations for H1 was €-14.2M, improved from €-16.2M last year; net debt at June 30, 2024 was €75.8M.

• Dividend of €0.17 per share for 2023, paid in two instalments, with a payout ratio of 71%.

Outlook and guidance

• Full-year 2024 guidance maintained, targeting adjusted operating profit above 2023 (€18.0M), despite Q2 setbacks.

• Gradual improvement expected in Sweden, with black numbers anticipated by year-end.

• Productivity and efficiency initiatives targeting €5–7M in annualized savings, with about one-third impacting 2024.

• Long-term targets: 100,000 cars sold/year, €1.5B revenue, 4% adjusted EBIT margin, NPS 60, eNPS 40.