Kamux Q2 2025 slides: Profitability improves despite 18.7% revenue decline

Introduction & Market Context

Kamux Suomi Oy (HEL:KAMUX), Europe’s fourth-largest used car retailer, presented its Q2 2025 results on August 12, 2025, showing improved profitability despite significant revenue decline. The company’s shares closed at €2.035 before the presentation and gained 2.46% during the session, suggesting cautious market optimism following a challenging first quarter.

The used car market remained challenging across Kamux’s operating countries, with dealer sales declining or flat as consumers continued to favor more affordable combustion-engine vehicles. New car registrations in January-June 2025 declined in Finland (-4.9%) and Germany (-5.4%), while Sweden showed modest growth (+6.0%).

Quarterly Performance Highlights

Kamux’s Q2 2025 results reflect a strategic pivot from volume to profitability. Despite a 22.5% decrease in cars sold and an 18.7% revenue decline to €205.5 million (compared to €252.6 million in Q2 2024), the company achieved an 8.2% increase in adjusted operating profit to €2.9 million, representing 1.4% of revenue (up from 1.1% in Q2 2024).

As shown in the following chart of quarterly revenue and adjusted operating profit:

The company’s focus on improving profitability through better inventory management and pricing strategies yielded positive results, with gross profit per car increasing significantly by 25% to €1,815 (from €1,449). This improvement helped offset the impact of lower volumes on overall gross profit, which was €24.0 million compared to €24.7 million in Q2 2024.

The key factors contributing to the improved profitability are summarized in this comprehensive overview:

Detailed Financial Analysis

Kamux’s financial performance showed notable improvements in several key metrics despite the volume challenges. Cash flow from operating activities in January-June improved significantly to €14.3 million (compared to -€14.2 million in the same period last year), primarily due to better inventory management.

The company’s key financial figures demonstrate this mixed performance of lower revenue but improved profitability metrics:

Inventory management was a particular bright spot, with net working capital decreasing by 8.2% and inventories declining by 12.0% compared to Q2 2024. This reduction in capital tied to inventory contributed significantly to the improved cash flow:

The components of operating cash flow show how the company achieved this improvement despite lower profits:

Performance by Country

Performance varied significantly across Kamux’s three operating countries. Finland, the company’s home market where it maintains market leadership with a 7.6% share, showed the strongest results with a 3.1% increase in adjusted EBIT to €6.9 million despite a 15.0% decrease in cars sold and 11.4% lower revenue.

Sweden showed signs of improvement with adjusted EBIT loss narrowing by 12.0% to -€1.1 million, despite a dramatic 46.1% decrease in cars sold and 47.3% decline in revenue. This improvement came from significantly better margins per car through active inventory management and pricing.

Germany delivered disappointing results with adjusted EBIT declining to -€0.9 million (from -€0.3 million), representing a 233.5% decrease as car sales fell 40.4% and revenue dropped 40.1%.

Strategic Initiatives

Kamux’s presentation highlighted several strategic initiatives aimed at improving profitability and operational efficiency. The company is implementing more centralized inventory management and pricing strategies, with a systematic Sales and Operations Planning (S&OP) process to better match inventory with consumer demand.

The company is also focusing on increasing the penetration of integrated services, which now represent 6.3% of total revenue (up from 5.4% in Q2 2024). As shown in the following chart, this trend has been consistently improving:

Kamux continues to adjust its showroom network, with one closure in Finland (Savonlinna) and one opening in Germany (Schwerin) during the first half of 2025. The company plans to open a new showroom in Jyväskylä, Finland in autumn 2025 and is conducting ongoing network assessment.

Outlook and Long-term Targets

Kamux maintained its outlook for 2025, expecting adjusted operating profit to improve from the previous year. This outlook aligns with the company’s strategic focus on profitability over volume.

The company’s progress toward its long-term targets shows mixed results. While Kamux remains far from its targets of 100,000 cars sold annually and €1,500 million in revenue, with both metrics trending downward over the last twelve months, the focus on profitability is showing early signs of success:

For shareholders, Kamux’s Board of Directors has been authorized to distribute a dividend of up to €0.07 per share in one installment in autumn 2025, representing approximately 60% of the €0.12 earnings per share for fiscal year 2024.

The presentation’s emphasis on "profitability moving in the right direction" suggests that Kamux is committed to its margin-focused strategy despite the volume challenges. This approach appears to be yielding initial positive results in terms of profitability metrics and cash flow, though significant work remains to achieve the company’s long-term targets while operating in challenging market conditions across Europe.

Full presentation:

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