AUTO1 GROUP (AG1) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 and half-year results with double-digit unit growth, record gross profit, and highest-ever adjusted EBITDA, driven by strong demand and margin improvements in both Merchant and Retail segments.

• Units sold reached 166,292 in Q2 (up 17% year-over-year) and 330,058 for H1 (up 10.5%), outpacing the used car market.

• Adjusted EBITDA for Q2 was €21 million, up €36 million year-over-year; H1 adjusted EBITDA turned positive at €37.7 million.

• Net loss narrowed sharply to €1.6 million in H1 2024 from €76.9 million in H1 2023.

Financial highlights

• Q2 revenue exceeded €1.5 billion, up 13% year-over-year; H1 revenue reached €2,972.6 million, up 4.4% year-over-year.

• Gross profit hit a record €173.3 million in Q2 (up 36% year-over-year); H1 gross profit was €336.3 million.

• Group GPU reached €1,041 in Q2, up 16% year-over-year.

• Adjusted EBITDA margin improved significantly, with Q2 margin at 1.4%.

• Cash and cash equivalents at period end: €544.7 million; no corporate debt, only non-recourse ABS financing.

Outlook and guidance

• Full-year 2024 guidance raised: units expected at 620,000–665,000 (Merchant: 550,000–595,000; Retail/Autohero: ~70,000).

• Gross profit guidance increased to €610–680 million; adjusted EBITDA guidance raised to €45–65 million.

• Q4 EBITDA expected to be close to breakeven due to seasonal weakness in merchant business.

• Positive momentum expected to continue, though Q4 may see seasonal fluctuations.