Business

Kamux Corporation Reveals Robust Growth in 2024 Interim Report

HÄMEENLINNA, Finland, May 17, 2024 - Kamux Corporation has proudly announced substantial growth in its revenue and a remarkable increase in its adjusted operating profit as detailed in its Interim Report for the first quarter of 2024. These achievements are being attributed to significant progress in its actions in Sweden and ongoing strategic initiatives across its operational countries.

The complete document detailing this exhilarating progress is readily available for investors and interested parties on the company's website.

First Quarter Economic Highlights

In the first quarter of 2024, Kamux saw its revenue escalate by 7.9% to an impressive EUR 240.7 million. This is a substantial increase compared to the EUR 223.1 million recorded in the same period the year before. Moreover, the gross profit witnessed a leap by 17.4% to EUR 24.4 million, attributing to 10.1% of the revenue, marking a performance improvement from 9.3%.

Operational efficiency improvements and a focus on profitability have been the linchpins of this financial success. The adjusted operating profit, a vital indicator of business health, surged by 227.0% to EUR 2.7 million. This figure represents 1.1% of revenue, showcasing a major uplift from the mere 0.4% in the previous year's comparison period. Operating profit itself increased significantly, by 285.3%, indicating a robust financial standing.

Sales and Profitability: A Closer Look

Kamux's commitment to increased profitability is evident in the number of cars sold, which rose by 5.3% to 16,137 vehicles. When examining like-for-like showroom revenue growth, the numbers were also positive, with a growth rate of 7.1% – a stark contrast to the -10.4% in the prior year.

Basic and diluted earnings per share were EUR 0.03, signaling the company's strengthened financial position.

Key Figures Detailed

The full financial summary, highlighting key performance indicators, is available as tabulated data in the Interim Report document. It demonstrates progress across several areas including inventory turnover and gross profit per sold car. The increased inventories and turnover days suggest an increase in stock, preparing Kamux for future demand.

Leadership's Perspective on Current Developments

Tapio Pajuharju, CEO of Kamux, provided a comprehensive overview of the market conditions and company performance. Recognizing the improvement in the used car market across all operating countries, he noted a return to normalcy after the previous year's challenges. Pajuharju underscored Finland's robust sales momentum and favorable developments in Germany.

However, Sweden faced some hurdles due to corrective measures that were introduced to remedy past misconduct. Despite challenges, Kamux made commendable progress in rebuilding its Swedish sales team and believes it will regain its market position by later in the year. Kamux's approach to gross profit saw gains in all countries, a clear result of focused strategies and investments.

Strategy and Outlook for the Future

With the announcement of its updated strategy, Kamux places the customer at the core, intertwining operational efficiency with customer-centricity to realize profitable growth. Its financial targets are ambitious yet achievable, bolstered by the promising Net Promoter Score of 51 in the first quarter, indicating high levels of customer referrals.

As the strategy unfolds, showroom upgrades and the launch of new business models, such as Kamux Worx, are on the horizon. With a keen focus on expanding and enhancing sourcing activities, specifically international purchasing, Kamux is keen on strengthening its position in the marketplace.

Regional Developments and Initiatives

In Sweden, clarity and accountability in management processes have been the focus, along with updates to the showroom network to align with the company's concept. In Germany, the transition to a product range that reflects the Kamux concept is well underway. These enhancements extend to a wide range of operations, right from the central processing of cars to geographic expansion with new showrooms.

The complex competitive environment, impacted by the downturn in new car sales, has seen some dealers either dive into the used car market or exit the industry altogether. Kamux stands firm in its omnichannel concept and maintains a commanding presence in the European used car market.

Kamux's Financial Horizon for 2024

Looking ahead to the rest of 2024, Kamux maintains an optimistic outlook, expecting its adjusted operating profit to exceed the EUR 18.0 million mark recorded in 2023. The proactive measures and strategic planning underway are slated to foster continued growth and prosperity for the company.

Events Influencing Kamux's Share Dynamics

Post the reporting period, Kamux encountered noticeable changes in its shareholder composition. A notification revealed that Danish bank Danske Bank A/S's managed funds had decreased their stake in Kamux to 4.95%. Another pivotal development was the announcement of the Group's Chief Sourcing Officer's departure for new opportunities, marking a significant personnel change in Kamux's team.

The conclusion of an ambitious share repurchase program further underlines the company's strategic actions. Acquiring 135,000 of its own shares for an average price of EUR 5.8361 each, Kamux reinforced its commitment to incentivize key personnel through long-term reward plans.

Kamux's Communication Commitment

Kamux is dedicated to maintaining open communication channels with stakeholders. In line with this, a news conference was organized in Helsinki, where the CEO and CFO discussed the Interim Report's findings in detail. This event was accessible live and via teleconference, ensuring broad participation and transparency.

Company Overview and Contact Information

A significant player in the preowned car segment, Kamux has blended online and physical showroom experiences to achieve exceptional customer satisfaction. With a vast network of 77 showrooms across Finland, Sweden, and Germany, since its inception in 2003, it has sold over half a million cars, a testament to its effective business model and growing trust among consumers. For additional insights or inquiries, key contact details are provided, inviting direct communication with the company's top executives.

Links and Additional Information Access

For ease of accessibility, all the links to the detailed Interim Report and supplemental materials are provided. These include a direct download option for the comprehensive Q1 2024 report, facilitating immediate access to financial specifics for investors and enthusiasts alike.

---

Kamux Corporation has surfaced from the first quarter of 2024 with notable strength, marking key financial achievements that set the tone for the year ahead. From profitability hikes, improved gross margins, and increased car sales, to strategic initiatives spearheaded by executive leadership, the company demonstrates resilience and ambition. Observers and stakeholders can access the plethora of data and strategic outlines through Kamux's proactive communication and readily available reporting documents. As Kamux propels forward with its customer-centric strategy and operational efficiency, it seems positioned for continued success in the dynamic and competitive used car market.