Bullish indicating open at $55-$60, IPO prices at $37
Introduction & Market Context
Kamux Suomi Oy (HEL:KAMUX) presented its Q1 2025 results on May 13, revealing significant challenges across all operating countries. The Finnish used car retailer reported declining sales volumes, compressed margins, and a swing to negative adjusted operating profit. The market reacted negatively, with Kamux’s stock price falling 11.7% to €2.35 on the day of the presentation, approaching its 52-week low of €2.02.
The company cited intense competition and a tight purchasing market as key factors impacting performance. Management acknowledged that Kamux’s car selection did not adequately meet customer demand, which has increasingly shifted toward affordable combustion engine vehicles.
As shown in the following summary of key performance indicators, Kamux faced significant headwinds in Q1 2025:
Quarterly Performance Highlights
Kamux reported revenue of €232.6 million in Q1 2025, a 3.4% decrease compared to €240.7 million in the same period last year. The decline was primarily driven by an 8.9% reduction in cars sold (14,694 vs. 16,137) and was particularly pronounced in Sweden, where revenue plummeted 39.6%.
The most concerning development was the company’s adjusted operating profit, which fell 171.6% to a loss of €1.9 million, compared to a profit of €2.7 million in Q1 2024. This represents an adjusted EBIT margin of -0.8%, down from 1.1% a year earlier.
Gross profit declined 25.6% to €18.1 million, with gross profit per car at €1,233, approximately 18% lower than in Q1 2024. The company attributed this compression to "active inventory management to improve future car selection," which negatively impacted profitability but generated strong cash flow.
The following chart illustrates Kamux’s revenue and adjusted operating profit trends:
Despite these challenges, Kamux reported some positive developments. Cash flow from operating activities improved significantly to €22.0 million, compared to -€16.2 million in Q1 2024. Additionally, the company achieved its long-term customer satisfaction target with a Net Promoter Score (NPS) of 60.
Detailed Financial Analysis
Kamux’s financial performance varied across its three operating countries, with all markets experiencing challenges. In Finland, revenue increased by 2.3% to €176.1 million, supported by sales of electric vehicles and hybrids that grew 45% year-over-year. However, adjusted operating profit in Finland decreased by 60.7% to €2.6 million, impacted by weak margins, low volumes, and inventory management issues.
The following breakdown shows Finland’s performance metrics:
Sweden experienced the most significant deterioration, with revenue declining 39.6% to €41.6 million and adjusted operating profit worsening to -€1.7 million from -€1.3 million in Q1 2024. The company cited a 31.2% drop in cars sold, attributing this to fewer showrooms, suboptimal inventory, tight competition, and management transitions.
The Swedish market performance is illustrated here:
In Germany, revenue decreased by 10.2% to €22.2 million, while adjusted operating profit swung to a loss of €0.1 million from a profit of €0.2 million in Q1 2024. Kamux noted that clearance of long-day stock impacted both volumes and margins, though improvements were observed toward the end of the quarter.
Germany’s performance metrics are shown below:
The company’s cash flow improved dramatically due to active inventory management. Operating cash flow reached €22.0 million in Q1 2025, compared to -€16.2 million in Q1 2024, primarily driven by a €22.3 million positive change in working capital as inventory value decreased by 17.7%.
The following chart illustrates this significant cash flow improvement:
Competitive Industry Position
Despite current challenges, Kamux maintains its position as Europe’s fourth-largest used car retailer based on 2024 sales volumes. The company sold 66,548 cars in 2024, operating across three countries. This places Kamux behind Aures Holding (Czechia), Aramis (France), and Autohero (Germany) in the European used car retail landscape.
The competitive positioning is illustrated in this comparison:
Market conditions varied across Kamux’s operating countries. In Finland and Sweden, market growth was primarily driven by private individual sales, while dealer sales remained flat. Germany experienced very moderate market growth, with consumer confidence remaining low. The company noted that competition and sourcing markets continued to be extremely tight across all regions.
Forward-Looking Statements
Despite the challenging quarter, Kamux maintained its outlook for 2025, expecting adjusted operating profit to improve from the previous year. However, the company’s progress toward its long-term targets shows significant gaps. Kamux aims to sell 100,000 cars annually (versus 65,105 in the last twelve months), achieve annual revenue of €1.5 billion (versus €1.0 billion), and reach an adjusted EBIT margin of 4% (versus 0.7%).
The company’s progress toward these targets is shown below:
In light of the deteriorating financial performance, Kamux’s Board of Directors proposed a reduced dividend of €0.07 per share for 2024, down from €0.17 per share the previous year. The proposed dividend represents 60% of the profit per share for fiscal year 2024, which was €0.12 (down from €0.24).
This dividend reduction follows a concerning trend that was already evident in Q4 2024, when adjusted operating profit dropped to just €700,000 from €5.5 million the previous year. The continued deterioration into Q1 2025 highlights the significant challenges Kamux faces in reversing its negative momentum.
Management has identified several operational initiatives to improve performance, including data-driven pricing, supply and operations planning, enhanced controls and discount policies, and better inventory management. The company also announced leadership changes, with Joni Tuominen starting as interim Managing Director for Finland on April 16, 2025, and a new sales director for Sweden beginning in April.
As Kamux works to address its challenges, investors will be closely monitoring whether these initiatives can successfully reverse the negative trends in sales volumes and profitability while maintaining the positive momentum in cash flow generation.
Full presentation:
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