Kamux Corporation's Interim Report for January 1--March 31, 2023: Kamux's revenue decreased and adjusted operating profit decreased significantly

HAMEENLINNA, Finland, May 12, 2023 /PRNewswire/ -- This is a summary of Kamux Corporation's Interim Report for January 1—March 31, 2023. The complete report is attached to this release and is also available at the company website at kamux.com.

The figures in parentheses refer to the comparison period, i.e., the same period in the previous year, unless stated otherwise.

January–March in brief

• Revenue decreased by -6.0%, totaling EUR 223.1 million (237.3)

• Gross profit decreased by -14.5% to EUR 20.7 million (24.3), or 9.3% (10.2) of revenue

• Adjusted operating profit (EBIT) decreased by -85.4% to EUR 0.8 million (5.7), or 0.4% (2.4) of revenue

• Operating profit (EBIT) decreased by -89.5% to EUR 0.6 million (5.7), or 0.3% (2.4) of revenue

• The number of cars sold decreased by -1.8% to 15,324 cars (15,601)

• Like-for-like showroom revenue decline was -10.4% (8.6)

• Basic earnings per share was 0.00 (0.11) and diluted earnings per share was EUR 0.00 (0.10)

Key Figures

*) Operating profit adjusted for special items related to strategic planning, legal processes, taxes from previous financial years and own real estate operations, totaling EUR 0.2 million for the first quarter of 2023 (1−3/2022: EUR 0.0 million and 1−12/2022: EUR 0.4 million).

CEO Juha Kalliokoski:

"Based on the market development in the first quarter of 2023, the used car market seems to be slowly stabilizing after the very challenging year 2022. In Finland and Germany, after a sharp decline, the market grew cautiously during the first quarter, and in Sweden, the total market for used cars was only slightly down compared to the previous year. However, despite these positive signals, the demand for used cars was still sluggish and consumer confidence was weak during the first quarter, and Kamux's revenue decreased due to the decrease in car prices and the number of cars sold. Despite the decline in sales, we maintained our market position in all our operating countries.

Operating profit decreased significantly mainly due to the weakened gross margin. The imbalance between supply and demand lowered the prices of used cars considerably at the beginning of the first quarter especially in Finland and Sweden, and the margin earned from cars bought in 2022 was weak despite the inventory write-offs made at the turn of the year. Although the margin from cars was weak, it developed positively compared to the last quarter of 2022 and improved month-on-month during the first quarter. In Sweden, the operating profit was also weakened by the increased costs resulting from the capacity increase in 2022 and a difficult purchasing market due to the weak krona.

The electrification of the car fleet continues, and an increasing number of sold used cars are EVs or plug-in hybrids. The number of plug-in hybrids and EVs sold by Kamux increased by 16% compared to the first quarter of 2022. Non-rechargeable hybrids were sold less than in the comparison period.

At Kamux, we continued to implement our strategy and focus on the basics: buying and selling cars, as well as inventory management. With the signals indicating market stabilization, we started to cautiously increase the inventory ahead of the coming season at the end of the first quarter. I would like to again thank all Kamux employees for their contribution to the company and our customers."

Outlook for the year 2023 (unchanged)

In 2023, Kamux expects its adjusted operating profit to grow from the year 2022, when the adjusted operating profit was EUR 17.5 million.

Financial targets for 2021—2023

The Company's medium-term financial targets are to increase revenue by over 20% annually, to increase adjusted operating profit annually, and to reach an adjusted operating profit margin of over 3.5% and a return on equity (ROE) of over 25%. Additionally, the Company's target is to distribute dividends of at least 25% of net profits. The Board of Directors of the Company estimates annually the balance between dividends to be distributed and funds to be used for Kamux's growth, and based on this assessment, makes a proposal on the amount of dividend to be distributed, which may for any single year differ significantly from the target level set in the dividend policy.

Kamux will update its strategy and financial targets at the beginning of 2024.

Significant events after the reporting period

On April 14, 2023, Kamux Corporation received a notification pursuant to Chapter 9, Section 5 of the Securities Markets Act ("SMA"), according to which the total holding of Elo Mutual Pension Insurance Company in Kamux Corporation shares and votes had decreased below five (5) percent on April 13, 2023 and was 4.97% following the notification.

On May 10, 2023 Kamux Corporation received a notification pursuant to Chapter 9, Section 5 of the Securities Markets Act ("SMA"), according to which the total holding of funds (Danica Pension Livsforsikringsaktie and Finnish Fund) managed by Danske Bank A/S (Copenhagen, Denmark) in Kamux Corporation shares and votes had decreased below five (5) percent on May 9, 2023 and was 4.95% following the notification.

Publication schedule for financial reporting in 2023

Publication schedule for Kamux Corporation's financial reporting in 2023 is as follows:

• Half-Year Report for January—June 2023    August 11, 2023

• Interim Report for January—September 2023  November 10, 2023

News conference

News conference for investors, analysts and media will be held today on Friday, May 12, 2023 at 11:00 EET in English, and at 12:00 noon EET in Finnish. CEO Juha Kalliokoski and CFO Marko Lehtonen will present the Interim Report.

The conference can be followed as a live webcast at https://kamux.videosync.fi/2023-q1-results (in English at 11.00 EET) and https://kamux.videosync.fi/2023-q1-tulos (in Finnish at 12.00 EET).

Participation by conference call:

You can access the teleconference by registering on the link below. After the registration you will be provided phone numbers and a conference ID to access the conference.
http://palvelu.flik.fi/teleconference/?id=10010321

The conference in English will start at 11.00 EET and in Finnish at 12.00 noon EET. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.

For further information, please contact:
CEO Juha Kalliokoski, tel. +358 40 185 8633
CFO Marko Lehtonen, tel. +358 50 575 2006
Head of Communications & IR Katariina Hietaranta, tel. +358 50 557 6765

Kamux Corporation
Communications

Kamux is a retail chain specializing in the sale of used cars and related integrated services that has grown rapidly. Kamux combines online shopping with an extensive showroom network to provide its customers with a great service experience anytime, anywhere. In addition to digital channels, the company has a total of 78 car showrooms in Finland, Sweden and Germany. Since its founding, the company has sold over 450,000 used cars, 62,922 of which were sold in 2022. Kamux's revenue in 2022 was EUR 968.7 million and its average number of employees was 883 in terms of full-time equivalent employees. Kamux Corporation is listed on Nasdaq Helsinki Ltd. For more information, please visit www.kamux.com 

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