Aramis Group (ARAMI) CMD 2024 summary

Strategic Vision and Market Opportunity

• Targeting long-term revenue of over €10 billion and 5% European market share, aiming to be Europe's preferred platform for used car buying and focusing on affordable, sustainable mobility.

• Operates in a vast, resilient, and fragmented used car market valued at up to €420 billion, with significant digitization potential and 34 million units annually.

• Market normalization post-pandemic and crisis, with prices stabilizing and new trends shaping a 'New Normal.'

• Key trends include electrification (BEVs projected at 45% of used market by 2035), price sensitivity, entry of Chinese OEMs, and ecological awareness, all seen as growth opportunities.

• Digital-first approach and vertical integration position the group to capitalize on market fragmentation and consolidation opportunities.

Business Model and Operational Excellence

• Vertically integrated model covers sourcing, refurbishing, and selling, with eight refurbishing centers and 68 customer centers across six countries.

• Proprietary Aramis Operating System and Performance Engine drive operational excellence, leveraging lean culture, continuous improvement, and technology.

• Asset-light, low working capital model, with best-in-class inventory rotation (20–26 days) and high gross profit per unit (€2,285 in 2024).

• Internal marketplace enables cross-border inventory sharing and international arbitrage, optimizing supply and demand across Europe.

• AI and data-driven tools enhance car selection, pricing, customer experience, and sales processes.

Growth, Profitability, and Financial Guidance

• Guidance for 2025–2027: double-digit organic CAGR growth in refurbished car volumes, high single-digit B2C growth, and at least €65 million adjusted EBITDA by 2027.

• Targeting 5% EBITDA margin at group level by 2027 (up from 2.3% in 2024), with convergence on best practices and ongoing improvements in working capital and SG&A.

• CapEx remains low (0.6% of sales), supporting asset-light expansion; new refurbishing centers cost €1.5 million, customer centers €0.1 million.

• Free cash flow expected to reach around 2.5% of sales by 2027, with ongoing focus on organic and M&A-driven growth.

• Delivered over €50 million adjusted EBITDA and €21 million free cash flow in 2024.