The acceleration of the sale of used cars boosted the Kamux chain's earnings. The company still fell short of expectations and the stock is falling in price.
Used ones the sale of cars keeps the car industry afloat in difficult times, according to the Kamux chain that sells used cars financial statements.
Kamux sold more than 68,000 cars last year, an increase of 8.5 percent compared to the previous year. At the same time, the company's net sales exceeded exactly one billion euros, which the company considers an “important milestone”.
Adjusted operating profit for the whole year was 18 million euros. The profit increased by a good three percent compared to 2022. Kamux also believes that this year the profit will increase even more.
“The used car market doesn't look bad, on the contrary, it looks pretty good. People clearly have a demand for used as an alternative to new,” commented the CEO Tapio Pajuharju to HS by phone.
According to the company, sales of rechargeable cars grew by 32 percent last year. The financial statement bulletin still paints a picture that many people are still reluctant to buy a car that uses electricity. Don't electric cars shoot through used ones?
“Yes, they shoot, but they shoot slowly. It takes time when they become available used. Many of the electric cars are first in business use,” continues Pajuharju.
Kamux operates in Finland, Sweden and Germany. Company especially the Finnish businesses and the strong end of the year kept them afloat.
In the last quarter, the adjusted operating profit increased by 164 percent compared to the previous year.
Despite this, the result fell short of market expectations. The consensus forecast collected by analysts expected the company to have a turnover of 246 million euros and an operating profit of 6.1 million euros in October-December. Kamux reported a turnover of 241.6 million euros and an operating profit of 4.5 million euros.
The company's share has fallen by almost 6 percent since the results were published on Friday.
The company has a harder time abroad than in Finland. Kamux calls the Swedish market “challenging”. Car dealerships have had difficulties there because of the cheap krone, and the market is divided: some chains are successful, some are floundering.
In the western neighbor, there have also been “recognized abuses” in individual stores. What on earth?
“The tires and rims are handled differently than we are used to,” says Pajuharju.
It depends on how the tire sets were transported during the transaction. Those who buy used often get both summer and winter tires with rims, and this is taken into account in the purchase price. On the Swedish side, the paperwork related to the tires has been done as best it can.
“Algae-based activity. It doesn't meet the hallmarks of a rash, but the process wasn't strict enough.”
In addition to this, there have been ambiguities in the authorizations related to pricing, i.e. in how the seller can decide on large amounts.
According to Kamux, corrective measures have been taken.
Kamux trade-in cars lined up at the Konala store in Helsinki in 2022.
As a whole used car sales continued to be brisk in Finland at the beginning of the year, reports the Automotive Information Center.
In February, around 26,000 used cars passed through all car shops, while in recent years the average has been three thousand cars lower in February.
On the other hand, about 5,300 new cars were registered last month, which is a drop of more than 12 percent compared to a year ago.
This is a direct result of the fact that last year fewer passenger cars were ordered than before due to interest rate increases and inflation.
“The revival of new car sales is essential for the entire car fleet, as it feeds newer cars into the trade-in car market,” commented the CEO in the press release. Tero Lausala From the Automotive Confederation.
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