Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kamux Corp (OHEL:KAMUX, Financial) has strengthened its capabilities in the sourcing arena by acquiring Web Cars Logistics from Sweden, enhancing its car sourcing operations.
- The company has formed a long-term strategic partnership with Sector Automotive, providing access to a significant fleet of well-maintained and branded cars, which is expected to improve their market offering.
- Kamux Corp (OHEL:KAMUX) has been successful in increasing the average sales price of its cars, focusing on a younger fleet with lower mileage and more electric and hybrid vehicles.
- The company has maintained and increased margins on financing services, indicating a strong performance in this area.
- Kamux Corp (OHEL:KAMUX) is actively working on cost efficiency improvements, with a program targeting EUR 5 million to EUR 7 million in savings, which is progressing well in network and people-related areas.
Negative Points
- Kamux Corp (OHEL:KAMUX) experienced a tough quarter with a nearly 1% decline in top-line revenue and decreased gross and operating profits.
- The company faced significant challenges in Sweden, with a more than 20% decline in volume, impacting overall performance.
- There was a cybersecurity incident in Germany resulting in a EUR 300,000 loss due to fraud, highlighting vulnerabilities in their processes.
- Inventory levels in Sweden and Germany were higher than optimal, leading to write-downs and impacting financial performance.
- The company has faced challenges in standardizing car-related processes, which has delayed expected cost savings and improvements in operational efficiency.
Q & A Highlights
Q: Can you explain the reasoning behind your guidance range of adjusted EBITDA EUR 15 million to EUR 17 million?
A: The guidance reflects solid performance in Finland and Germany, but uncertainty in Sweden. The lower end accounts for potential continued challenges in Sweden, while the higher end requires strong performance across all three markets. - Tapio Pajuharju, CEO
Q: Where are you in the journey to standardize operations across the board?
A: We are progressing well in network and people-related areas, but car-related process changes are taking longer. We are working on standardizing and synchronizing car flow processes. - Tapio Pajuharju, CEO
Q: What are the early learnings from the deals with Sector and Web Cars?
A: The Sector deal provides good visibility and well-maintained cars, while Web Cars offers a strong logistics platform. Both integrations are ongoing and expected to enhance our capabilities in sourcing and sales. - Tapio Pajuharju, CEO
Q: Can you elaborate on the cybersecurity issue in Germany?
A: We were victims of a fraud involving compromised emails from a regular counterparty. Despite multiple security measures, we lost money on a deal where cars were not delivered. - Jukka Havia, CFO
Q: What are your plans for opening new stores in Germany?
A: We are actively house hunting and plan to open two to three new stores, focusing on the ex-eastern part of Germany and further south. - Tapio Pajuharju, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
