Kamux hits record low as weakening consumer demand weighs on guidance

Kamux Oyj

30/12/2022 11:25

(Updates share move, adds analyst comment, milestones)
    ** Shares in Kamux  KAMUX.HE  slide 14% to their lowest ever
after the Finnish used car retailer cut its 2022 outlook due to
weaker-than-expected sales and margin in Q4
    ** The company now sees its revenue to be of over EUR 950
mln ($1.01 bln), adj. oper profit to be of around EUR 16-20 mln
    ** Kamux downgraded its guidance several times this year,
most recently in November when it adjusted its underlying profit
forecast to EUR 23-26 mln
    ** It said demand for used cars contracted much more than
expected in all of its operating countries (Finland, Sweden,
Germany) in Q4 as consumer confidence, hit by the war in Ukraine
and its effects, continued to weaken
    ** "There is not that much hope for the market environment
improving next year," Handelsbanken analyst Timo Heinonen
commented on the sharp share reaction
        ** He said that Kamux has tried to clean its inventories
but that has taken too long and made people to think they don't
know what is happening in the market
  
        ** The stock, on track for its worst day in over a year,
is the weakest performer in Finland
  
    ** Including today's fall, Kamux shares are down 61.5%
year-to-date and about 75% since reaching its highest last year,
to EUR 4.4 from EUR 18.03 on Aug. 10, 2021
($1 = 0.9385 euros)
 (Reporting by Louise Breusch Rasmussen)
 ((Louisebreusch.rasmussen@thomsonreuters.com))