Kamux Corporation's Interim Report for January 1--September 30, 2022: Kamux's revenue grew in a challenging market environment, adjusted operating profit decreased significantly

HÄMEENLINNA, Finland, Nov. 18, 2022  /PRNewswire/ -- This is a summary of Kamux Corporation's Interim Report for January 1—September 30, 2022. The complete report is attached to this release and is also available at the company website at www.kamux.com.

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

July—September in brief

• Revenue increased by 2.8%, totaling EUR 261.7 million (254.6)
• Gross profit decreased by -16.5% to EUR 24.2 million (29.0), or 9.2% (11.4) of revenue
• Adjusted operating profit (EBIT) decreased by -47.8% to EUR 5.2 million (10.0), or 2.0% (3.9) of revenue
• Operating profit (EBIT) decreased by -47.8% to EUR 5.2 million (10.0), or 2.0% (3.9) of revenue
• The number of cars sold decreased by -9.3% to 16,952 cars (18,699)
• Like-for-like showroom revenue growth was 0.5% (13.9)
• Basic and diluted earnings per share were EUR 0.09 (0.18)

January—September in brief

• Revenue increased by 7.6%, totaling EUR 745.8 million (693.3)
• Gross profit increased by 0.3% to EUR 72.9 million (72.7), or 9.8% (10.5) of revenue
• Adjusted operating profit (EBIT) decreased by -31.5% to EUR 15.4 million (22.4), or 2.1% (3.2) of revenue
• Operating profit (EBIT) decreased by -16.8% to EUR 15.4 million (18.5), or 2.1% (2.7) of revenue
• The number of cars sold decreased by -6.7% to 48,241 cars (51,701)
• Like-for-like showroom revenue growth was 4.6% (20.3)
• Basic and diluted earnings per share were EUR 0.27 (0.31)

Key figures

CEO Juha Kalliokoski:

"Despite the continued challenging market situation, we succeeded in growing our market share in all our operating countries also during the third quarter. The demand for used cars was sluggish, as accelerated inflation and the energy crisis weakened consumers' purchasing power and confidence in the future.

Revenue developed positively in all countries as a result of higher average prices, and sales of integrated services continued to develop well. Margin per car developed positively in Germany, but weakened in Sweden and especially in Finland due to rapid changes in demand between different power sources and the related measures to adjust inventory. Operating costs remained well under control and were at previous year's level. The decrease in operating profit was due to the decline in the number of cars sold and the weakening of margin per car.

There was a clear change in the demand for used cars during the third quarter, as the very strong demand for electric and hybrid cars at the beginning of the year weakened as a result of the electricity price increases and the news coverage on the energy crisis. However, the number of hybrid and electric cars sold by the company increased by 29% compared to the third quarter of 2021. Our work to adjust the inventory of cars for sale to better match the demand progressed, especially in Finland, although it slowed down significantly as the demand for electric and hybrid cars weakened and the demand was directed towards low-consumption and more affordable combustion engine cars. With the generally weakened demand, the availability of used cars has improved substantially.

Despite the challenging market situation, we continued to invest in growth in accordance with our strategy. In Sweden, we prepared to open two new showrooms, and the Nyköping and Kalmar showrooms were opened in October. In Finland, we combined the Olari and Niittykumpu showrooms into one large showroom, and in Germany the Wentorf operations were transferred to the nearby showroom in Nedderfeld.

We have yesterday published news about the change of CEO at Kamux. Having led the company for almost 20 years, I have decided that now is a good time for me to step down from the operational role and as CEO of Kamux. It has been a pleasure to develop Kamux together with the entire staff and the Board of Directors and we can be proud of Kamux's growth to Europe's third largest dealer focusing purely on used cars. I am also extremely pleased that Kamux's new CEO is Tapio Pajuharju and from the bottom of my heart I wish Tapio the best of success in his new role in taking the Company from third to number one position in Europe. I want to thank my family and friends, all Kamux employees, the Board of Directors, partners, and the shareholders who have lived with us through the various phases of the Company and the market."

Revised outlook for the year 2022 (Updated on November 18, 2022)

In 2022, Kamux expects its revenue to be over EUR 1,000 million and adjusted operating profit to be approximately EUR 23−26 million.

Although Kamux's business is not exposed to immediate Russia-related risks, the war in Ukraine and its effects have weakened consumer confidence. This has led to a strong contraction in the demand for used cars in all Kamux's operating countries from March 2022 onwards. The weakened demand and the measures taken to address the inventory to match the current demand have also had a negative impact on Kamux's profitability.

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 dividends to be distributed, which may for any single year differ significantly from the target level set in the dividend policy.

Significant events after the reporting period

On November 17, 2022 Kamux published that the founder and CEO of Kamux Corporation, Mr. Juha Kalliokoski, has decided to step down from his current position as CEO, and the Board of Directors of the Company has appointed Mr. Tapio Pajuharju, M.Sc. (Econ.), b. 1963, as the new CEO. The change of CEO will take place during the first half of 2023, at a time to be specified later, so that Tapio Pajuharju will assume his role as CEO latest on June 1, 2023, and Juha Kalliokoski will step down from the Company's operative management at the latest on July 1, 2023.

On November 17, 2022 Kamux also published the proposals of the Shareholders' Nomination Board to Kamux Corporation's Annual General Meeting 2023. The Shareholders' Nomination Board proposes to the AGM that of the current members of the Board of Directors, Mr. Terho Kalliokoski, Ms. Reija Laaksonen, Mr. Antti Mäkelä, Mr. Harri Sivula and Ms. Jaana Viertola-Truini be re-elected as members of the Board of Directors and the Company's ceding CEO, Mr. Juha Kalliokoski, be elected as new member of the Board of Directors. Additionally, the Shareholders' Nomination Board proposes to the AGM that Terho Kalliokoski be elected as Chair of the Board of Directors and Harri Sivula be elected as Vice Chair of the Board of Directors. Mr. Tuomo Vähäpassi, current member of the Board of Directors, has stated that he is no longer available to be re-elected for a new term. Mr. Tapio Pajuharju, current member of the Board of Directors, has been appointed as the Company's new CEO as of June 1, 2023, at the latest.

The Shareholders' Nomination Board proposes to the AGM that the annual remuneration for the Chair and members of the Board of Directors be modestly raised from the 2022 level, and the committee fees to remain on the 2022 level. Accordingly, the proposed remuneration is as follows: chairperson of the Board of Directors EUR 68,000 (before EUR 65,000), member of the Board of Directors EUR 31,000 (before EUR 30,000), chairperson of the Audit Committee EUR 5,000, member of the Audit Committee EUR 2,500, chairperson of the Personnel and Remuneration Committee EUR 5,000 and member of the Personnel and Remuneration Committee EUR 2,500.

Publication schedule for financial reporting in 2023

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

Financial Statements Bulletin 2022                       March 3, 2023

Interim Report for January—March 2023              May 12, 2023

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

Interim Report for January—September 2023      November 10, 2023

The Annual Report for 2022 including Financial Statements will be published on the week commencing March 27, 2023.

The Annual General Meeting of Kamux Corporation is scheduled to be held on April 20, 2023.

News conference

News conference for investors, analysts and media will be held today, Friday, November 18, 2022 at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki 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/2022-q3-results (in English at 11.00 EET) and https://kamux.videosync.fi/2022-q3-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. https://palvelu.flik.fi/teleconference/?id=1008170

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 400,000 used cars, 68,429 of which were sold in 2021. Kamux's revenue reached EUR 937.4 million in 2021. In 2021, Kamux's average number of employees was 848 in terms of full-time equivalent employees. Kamux Corporation is listed on Nasdaq Helsinki Ltd.

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