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 profit and adjusted operating profit, mainly due to margin pressure and underperformance in Sweden.

• 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 performed well, with revenue stable at EUR 13.2 million (5.7% of total), and customer satisfaction (NPS) met long-term targets.

• Intense competition, weak consumer confidence, and inventory mismatches impacted performance across all markets.

Financial highlights

• Gross profit dropped 25.6% to EUR 18.1 million, with margin per car down 18.3% year-over-year.

• Cash flow from operating activities improved to EUR 22.0 million from EUR -16.2 million, driven by active inventory management.

• 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

• Guidance for the year remains unchanged despite a weak start, with confidence based on seasonality, margin improvements, and better inventory management.

• Adjusted operating profit for 2025 is expected to improve from the previous year, with long-term targets of 100,000 cars sold, EUR 1.5 billion revenue, and a 4% adjusted operating profit margin.

• Risks are elevated due to the soft Q1, but management is confident in achieving targets through operational improvements and market recovery in Q2 and Q3.