Kamux Corporation's Financial Statements Bulletin for January 1 - December 31, 2020

HELSINKI, Feb. 26, 2021 /PRNewswire/ -- The figures in parentheses refer to the comparison period, i.e. the same period in the previous year, unless stated otherwise.

October-December in brief

• Revenue increased by 13.3%, totaling EUR 198.8 million (175.4)
• Gross profit increased by 18.7% to EUR 23.8 million (20.0), or 12.0% (11.4) of revenue
• Adjusted operating profit (EBIT) increased by 38.8% to EUR 7.5 million (5.4), or 3.8% (3.1) of revenue
• Operating profit (EBIT) increased by 37.5% to EUR 7.4 million (5.4), or 3.7% (3.1) of revenue
• The number of cars sold increased by 9.3% to 15,733 cars (14,395)
• Like-for-like showroom revenue decline was -1.6% (14.6)
• Earnings per share were EUR 0.13 (0.12)

January-December in brief

• Revenue increased by 10.0%, totaling EUR 724.1 million (658.5)
• Gross profit increased by 15.0% to EUR 91.5 million (79.6), or 12.6% (12.1) of revenue
• Adjusted operating profit (EBIT) increased by 20.8% to EUR 30.7 million (25.4), or 4.2% (3.9) of revenue
• Operating profit (EBIT) increased by 23.1% to EUR 31.2 million (25.3), or 4.3% (3.8) of revenue
• The number of cars sold increased by 9.4% to 60,657 cars (55,432)
• Like-for-like showroom revenue decline was -3.8% (6.3)
• Earnings per share were EUR 0.58 (0.48)
• The Board of Directors proposes a dividend of EUR 0,24 per share to be distributed for the year 2020 (for the year 2019 a dividend EUR 0.23 per share was distributed). The dividend proposed is 41% of the earnings per share for the financial year.
• The business acquisition of Autosilta was concluded on January 9, 2020.
• The company published a stock exchange release on March 20, 2020, informing that it is not likely that Kamux will reach its medium-term targets in 2020. Kamux specified its outlook for 2020 in a stock exchange release published on December 16, 2020: according to the best estimate of that time, the company estimated to reach the 2020 medium-term target of operating profit margin and to reach or get close to the revenue growth target.
   

Key figures

* Operating profit adjusted for special items related to strategy planning, geographical expansion and taxes from previous financial years, totaling EUR 0.1 million for 10-12/2020 and EUR -0.5 million for 1-12/2020 (10-12/2019: EUR 0.1 million and 1-12/2019: EUR 0.1 million).
 

CEO Juha Kalliokoski:

"Our business model proved its strength and carried us through the year of corona pandemic also in the completely exceptional operating environment in 2020. Our strengths in digital sales, our quick ability to react and the flexibility of our concept supported our success during the exceptional year.

During the fourth quarter, the corona pandemic continued as the number of infections increased in all Kamux's operating countries. In Germany, society as well as retail were largely closed down in December, and also Kamux shifted its sales exclusively to digital channels. In Finland and Sweden, substitute arrangements enabled us to keep all showrooms under operation. Although coronavirus vaccinations began in Europe at the end of December, the possible spread of viral variants as well as the poor availability of vaccines created uncertainty in the market.

Kamux's revenue increased by 13.3% and adjusted operating profit by 38.8% in the fourth quarter. In Finland, operating profit increased by 29.7% from the previous year, but revenue grew only by 7.9%. In both Sweden and Germany, revenue growth was strong even though the corona pandemic situation, worsened at the end of the year, was reflected in sales volume especially in December.

The difficulties in new car retail were reflected in the purchasing market with periodic challenges in sourcing appropriately priced used cars, even though the used car market grew in all our operating countries in the fourth quarter.

We worked with determination through the different stages of the pandemic. We implemented our strategy by opening new showrooms and by recruiting personnel in all our operating countries. Our investments in digital customer and business processes develop leading with knowledge, the significance of which was highlighted during the past year. In 2020, our revenue increased by 10.0% and adjusted operating profit by 20.8%. Our operating profit was 4.3% of the revenue of the financial year. Return on equity was 26.3% (25.3%).

I am quite satisfied with our year, as we were successful in achieving very profitable growth in an exceptional market situation. I want to thank our customers, partners and shareholders for their trust in Kamux also during this unusual year. In particular, I want to extend my gratitude to all Kamux employees for their committed and target-oriented work in the unpredictable pandemic situation, all the while taking care of the customers' health as well as their own.

On February 26, 2021, we published the company's updated strategy for the years 2021-2023. The used car market offers an exceptionally attractive opportunity, and the next logical step in Kamux's story is thus to take an ambitious leap to accelerate growth and to elevate scalability. Our strategy emphasizes leading with knowledge and utilizing data, improving process efficiency, and a seamless omnichannel customer experience. We develop our own capabilities for the good of the customer and invest in the continuous learning of our personnel. We will also make targeted investments into these areas during the strategy period."
 

Outlook and financial targets

In connection with the updated strategy published on February 26, 2021, Kamux published its medium-term financial targets for the years 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 dividends to be distributed, which may for any single year differ significantly from the target level set in the dividend policy.

Outlook for the year 2021

In 2021, Kamux expects its revenue to reach EUR 800-850 million and adjusted operating profit to increase from the previous year.

Previous targets

The company's previous medium-term annual financial targets for 2019-2022 were to increase revenue by over 10% and to reach an operating profit margin of at least 4% as well as a dividend payout of at least 30% of the profit for the financial year.

The global corona pandemic and the restrictions and regulations related to it caused significant changes to Kamux's operating environment during 2020. The company publishing a stock exchange release on March 20, 2020, informing that it is not likely that Kamux will reach its medium-term targets in 2020. No changes were made to the medium-term targets set by the Board of Directors.

Kamux specified its outlook for 2020 in a stock exchange release published on December 16, 2020: according to the best estimate of that time, the company estimated to reach the 2020 medium-term target of operating profit margin and to reach or get close to the revenue growth target.
 

Publication schedule for financial reporting in 2021

Publication schedule for Kamux Corporation's financial reporting in 2021:

May 12, 2021: Kamux Corporation will publish its Interim Report for January-March 2021.

August 13, 2021: Kamux Corporation will publish its Half-Year Report for January-June 2021.

November 12, 2021: Kamux Corporation will publish its Interim Report for January-September 2021.

The Annual Report for 2020 including Financial Statements will be published on week 11/2021.

The Annual General Meeting of Kamux Corporation is scheduled to be held on Tuesday, April 20, 2021.
 

Financial Statements Bulletin Webcast

Kamux will hold a Financial Statements Bulletin webcast and conference call for media and analysts today, February 26, 2021 at 11:00 (EET) in Finnish and then in English at around 12:00 (EET). The event will be hold only through web and you can follow it as a live webcast in Finnish through a link at https://kamux.videosync.fi/2020-q4-tulos and in English at https://kamux.videosync.fi/2020-q4-results.  The Financial Statements Bulletin will be presented by CEO Juha Kalliokoski and CFO Marko Lehtonen.
 

In Hämeenlinna on February 26, 2021
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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