Kamux Corporation's Interim Report for January 1 - September 30, 2019

HELSINKI, Nov. 8, 2019 /PRNewswire/ --  Kamux continued its strong and profitable growth: Revenue increased by 30.6% and adjusted operating profit by 29.0%

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

July-September in brief

- Revenue increased by 30.6%, totaling EUR 182.8 million (140.0)

- Gross profit increased by 27.1% to EUR 22.8 million (18.0), or 12.5% (12.8) of revenue

- Adjusted operating profit (EBIT) increased by 29.0% to EUR 8.6 million (6.6), or 4.7% (4.7) of revenue

- Operating profit (EBIT) increased by 30.0% to EUR 8.6 million (6.6), or 4.7% (4.7) of revenue

- The number of cars sold increased by 22.6% to 15,409 cars (12,564)

- Like-for-like showroom revenue growth was 9.6% (4.2)

- Earnings per share were EUR 0.16 (0.16)

January-September in brief

- Revenue increased by 21.8%, totaling EUR 483.1 million (396.7)

- Gross profit increased by 21.9% to EUR 59.6 million (48.9), or 12.3% (12.3) of revenue

- Adjusted operating profit (EBIT) increased by 13.9% to EUR 20.0 million (17.5), or 4.1% (4.4) of revenue

- Operating profit (EBIT) increased by 33.0% to EUR 20.0 million (15.0), or 4.1% (3.8) of revenue

- The number of cars sold increased by 16.0% to 41,037 cars (35,376)

- Like-for-like showroom revenue growth was 2.8% (7.3)

- Earnings per share were EUR 0.36 (0.28)

CEO Juha Kalliokoski:

"During the third quarter, Kamux's revenue and operating profit increased hand in hand. Our revenue increased by 30.6%, totaling EUR 182.8 million. Our adjusted operating profit increased by 29.0%, totaling EUR 8.6 million. We succeeded particularly well in inventory management and efficient sales management.

During the third quarter, our revenue increased strongly in all of our operating countries. Our operating profit margin improved in Finland and in Germany compared to the last year. In Sweden, the operating profit margin was slightly under last year's level, and we shall focus in particular on improving profitability in Sweden.

Despite the social debate, people's need for mobility remains unchanged, and Kamux has been able to respond to customer needs well even in the current situation. We have focused on the systematic implementation of Kamux's operating model during a time when the car market is influenced by factors such as technology change, power source and climate debate as well as possible new car-related tax policies.

Unlike traditional brick and mortar retail, Kamux's business model has been digital from the beginning, and the role of digital in the company will increase further. A total of 800,000 visits are made to Kamux's Finnish, Swedish and German websites each month, and we have a presence in ten digital marketing channels, in addition to our 71 showrooms. Majority of our customers choose to interact with us both online and in the showroom. Cross-selling, i.e. a customer purchase process that takes place in a digital environment via the website, chat service and phone, already accounts for 30% of sales in Finland and 26% of the Group's sales.

The fresh inventory at the end of the third quarter creates a good foundation for the rest of the year. However, unlike usually in retail, car sales do not peak during the Christmas sales season. Historically, compared to the third quarter the final quarter of the year has been more modest in terms of sales.

In October, Kamux appointed Olli Kilpi as the company's Chief People Officer and Ilkka Virtanen as Director of International Business. With the appointments to the Management Team, we wanted to ensure that these senior executives, who have already done an excellent job as members of Kamux's Management Team, will be broadening their management perspectives as well as strengthening their competence and focusing their expertise on functions that are important to the future of the company."

Outlook and financial targets

Kamux does not provide a short-term outlook. The company's medium-term annual financial targets for 2019-2022 are to increase revenue by over 10% and to reach an operating profit margin of at least 4%.

Key figures

* Operating profit adjusted for special items related to strategy planning, geographical expansion and during the comparative year also taxes from previous financial years. During the third quarter of 2019 there were no special items. During 1-9/2019 special items totaled EUR 0.0 million (7-9/2018: EUR 0.0 million, 1-9/2018: EUR 2.5 million and 1-12/2018: EUR 3.0 million).

** Key figures 1-9/2019 and 7-9/2019 include the effects of the adoption of IFRS 16 Leases standard. Excluding the effects of IFRS 16, the comparable figures in 1-9/2019 were: Operating profit (EBIT) EUR 19.8 million, Adjusted operating profit EUR 19.9 million, Net debt EUR 0.4 million, Return on equity (ROE) 25.1%, Return on investment (ROI) 21.1% and Equity ratio 58.3% and 7-9/2019 Operating profit (EBIT) EUR 8.4 million and Adjusted operating profit EUR 8.4 million.

Publication schedule for financial reporting in 2020

Publication schedule for Kamux Corporation's financial reporting in 2020:

February 28, 2020: Kamux Corporation will publish its Financial Statements Bulletin 2019.

May 15, 2020: Kamux Corporation will publish its Interim Report for January-March 2020.

August 13, 2020: Kamux Corporation will publish its Half-Year Report for January-June 2020.

November 13, 2020: Kamux Corporation will publish its Interim Report for January-September 2020.

The Annual Report for 2019 including Financial Statements will be published on week 12/2020.

The Annual General Meeting of Kamux Corporation is scheduled to be held on Tuesday, April 21, 2020.

Interim Report press conference and webcast

Kamux will hold an Interim Report press conference for media and analysts today, November 8, 2019 at hotel GLO Kluuvi, Video Wall meeting room, address Kluuvikatu 4, Helsinki, at 11:00 (Finnish time) in Finnish and then in English at around 11:30. You can follow the press conference live in Finnish through a link at https://kamux.videosync.fi/2019-q3-tulokset and in English at https://kamux.videosync.fi/2019-q3-results. The Interim Report will be presented by CEO Juha Kalliokoski and CFO Marko Lehtonen.

In Hämeenlinna on November 8, 2019

Kamux Corporation

The Board of Directors

For more information:
Juha Kalliokoski, CEO
Tel. +358-50-544-5538
Marko Lehtonen, CFO
Tel. +358-50-575-2006
Satu Otala, Director of Communications
Tel. +358-400-629-337

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