Kamux’s operating profit fell considerably short of expectations

Dealer in used cars Kamux published its April–June interim report. The company’s adjusted operating profit fell more than analysts’ expectations from the comparison period.

Adjusted operating profit was EUR 0.6 million in April–June. The reading was 2.9 million euros at the same time last year. Analysts expected an average of 2.6 million euros.

Kamux’s turnover rose to 219 million euros from 206 million euros. Analysts predicted 218 million euros.

The averages of analysts’ forecasts are extracted from the information service Factsetista.

Kamux’s reported profit per share was at the level of the comparison period at EUR 0.00. Analysts predicted 0.04 euros.

The used car market continued to be sluggish in the second quarter in all of Kamux’s operating countries, the company’s CEO Juha Kalliokoski commented in the interim report.

“Consumer confidence rose from a weak level towards the end of the quarter. However, it was not yet reflected in the used car trade. The impact of the Middle East crisis on fuel prices significantly weakened the demand for diesel cars and lowered their prices and melted margins.”

The instruction was repeated

The car dealer repeated its guidance and expects adjusted operating profit to increase from last year’s 3.3 million euros, which is the weakest reading in the company’s stock market history.

Analysts predicted 6.1 million euros for the whole year before the review was published. There may be changes to the forecasts, because the adjusted operating profit fell short of the forecasts in April–June.

The company’s adjusted operating result was EUR 0.4 million in loss in January–June. Kamux made 0.9 million euros in operating profit at the same time last year.

Last year, Kamux strictly adhered to its guidance predicting an improvement in adjusted operating profit, even though the company’s achievement of the guidance seemed very difficult compared to the figures at the beginning of the year. Guidance was calculated from the end of the year.

The company’s business has not been doing well in recent years. The competition has intensified with, for example, Saka and K-Auto, the car selection has not been suitable for buyers, there have been problems with the staff and Sweden has brought difficulties.

According to Kalliokoski, the competition continued to be tight in all operating countries. Kamux worked on stock turnover in the second quarter, says Kalliokoski.

The values ​​of used cars decrease relatively quickly in the warehouse, which is why cars should be able to be bought and sold quickly.

“The rapid change in the demand for various operating forces in a tightly competitive market challenged purchasing operations as well as inventory rotation and structure. Focusing on inventory rotation brought results.”

According to Kalliokoski, Sweden is now starting to see the results of the work in real numbers. Sweden’s net sales increased by 20 percent to 46 million euros. Adjusted operating profit was only EUR 0.5 million in loss, while in the comparison period a loss of EUR 1.1 million was accumulated.

Swedish business developed better than analysts’ expectations. Finland, on the other hand, was disappointing compared to analysts’ expectations. Domestic profitability weakened.