Wetteri (WETTERI) CMD 2025 summary

Strategic direction and market context

• The updated strategy aims for a profitability turnaround in 2025, followed by profitable growth through 2028, emphasizing both organic and selected inorganic expansion.

• The business model shifts from aggressive new car growth to a balanced approach, prioritizing used car sales, service efficiency, and digitalization, while addressing industry trends like consolidation, electrification, and agency models.

• The company targets being Finland's most recommended full-service car dealership by 2028 and prioritizes excellent customer experience and sector expertise.

• Each business segment—passenger cars, maintenance services, and heavy equipment—has specific growth and profitability targets.

• Used car business targets both organic and inorganic growth, especially in major metropolitan areas.

Financial targets and guidance

• Annual organic revenue growth target is set at over 10% for 2026–2028, with adjusted operating profit at 3% of revenue and an equity ratio of at least 25%.

• Used car sales volume to be doubled from 2025 levels by 2028.

• Cost structure to be streamlined, with annual personnel cost savings of approximately €4 million from 2026.

• Net interest-bearing debt reduced by €35.5 million in 2025, with further optimization of inventory turnover and financing limits.

• Dividend policy will be reviewed during the strategy period.

Business development and operational focus

• Four strategic priorities: profitable growth in branded business, doubling used car sales, top industry talent, and excellent customer experience.

• Strategy will be executed in two phases: Turnaround (2025–2026) focusing on restructuring and cost efficiency, and Profitable Growth (2026–2028) targeting organic and inorganic growth, especially in used cars and value-added services.

• Recent investments in brand representation (e.g., Mercedes-Benz, Skoda, BYD) and expansion into new regions support growth.

• Service and repair business is a cornerstone of profitability, with focus on digital booking, process optimization, expanding electric vehicle services, and EV training.

• Digitalization initiatives include omnichannel customer journeys, AI integration, and enhanced data analytics for sales and aftersales.