Summary of the review period 1 January to 31 March 2024
- The Group's revenue was
EUR 144.8 million (EUR 87.8 million ), 65% growth -
Adjusted EBITDA was
EUR 6.1 million (EUR 5.4 million) -
The adjusted operating profit was
EUR 2.5 million (EUR 2.6 million) -
The operating profit was
EUR 1.1 million (EUR 0.7 million) -
The revenue of the Passenger Cars segment increased by
EUR 47.3 million (93%) year-on-year -
The revenue of the Maintenance Services segment increased by
EUR 11.0 million (76%) year-on-year -
The car dealership business operations of Suur-Savo became part of Wetteri through a business acquisition on
1 January 2024 Suvanto Trucks Oy became part of Wetteri through a share exchange on29 February 2024
Financial guidance for 2024
- Revenue
EUR 660-800 million -
Adjusted operating profit
EUR 19-23 million
The company's medium-term (3-year) target is to achieve
Key performance indicators
EUR thousand | 1 Jan to | 1 Jan to | Change | 1 Jan to |
Revenue | 144,798 | 87,751 | 65% | 433,849 |
EBITDA | 5,269 | 4,246 | 24% | 19,721 |
EBITDA, % of revenue | 4% | 5% |
| 5% |
Adjusted EBITDA 1) | 6,078 | 5,357 | 13% | 23,630 |
Adjusted EBITDA, % of revenue | 4% | 6% |
| 5% |
Operating profit (loss) (EBIT) | 1,057 | 739 | 43% | 4,371 |
Operating profit (loss), % of revenue | 1% | 1% |
| 1% |
Adjusted operating profit 1) | 2,454 | 2,621 | -6% | 10,884 |
Adjusted operating profit, % of revenue | 2% | 3% |
| 3% |
Profit (loss) before tax | -1,560 | -251 | - | -4,696 |
Profit (loss) before tax, % of revenue | -1% | 0% |
| -1% |
Profit (loss) for the period from continuing operations | -1,388 | -362 | - | -4,851 |
Profit (loss) for the period from continuing operations, % of revenue | -1% | 0% |
| -1% |
Profit (loss) for the period | -1,281 | 35 | -3,771% | -4,049 |
Profit (loss) for the period, % of revenue | -1% | 0% |
| -1% |
Earnings per share from continuing operations, basic (EUR) | -0.01 | 0.00 |
| -0.04 |
Earnings per share from continuing operations, diluted (EUR) | -0.01 | 0.00 |
| -0.04 |
Earnings per share, basic (EUR) | -0.01 | 0.00 |
| -0.03 |
Earnings per share, diluted (EUR) | -0.01 | 0.00 |
| -0.03 |
Return on equity (ROE), % | -14% | 0% |
| -13% |
Return on investment (ROI), % | -9% | -2% |
| -9% |
Equity ratio, % | 16% | 18% |
| 16% |
Liquidity, % | 86% | 76% |
| 83% |
Average number of personnel during the financial year 2) | 1,053 | 750 |
| 926 |
Invoiced sales of new passenger cars (pcs) | 1,070 | 583 |
| 3,322 |
Invoiced sales of new commercial trucks (pcs) | 44 | 56 |
| 181 |
Invoiced sales of used passenger cars (pcs) | 2,443 | 1,220 |
| 5,764 |
Invoiced sales of used commercial trucks (pcs) | 52 | 32 |
| 114 |
Orders: new passenger cars (pcs) | 1,002 | 630 |
| 2,862 |
Orders: new commercial trucks (pcs) | 36 | 44 |
| 127 |
Passenger cars: order backlog at the end of the period | 47,249 | 74,591 |
| 57,343 |
Commercial trucks: order backlog at the end of the period | 12,071 | 20,100 |
| 13,655 |
Passenger car repair shop: hours sold | 89,050 | 65,393 |
| 319,562 |
Commercial truck repair shop: hours sold | 29,218 | 29,468 |
| 110,759 |
1) The adjusted EBITDA and operating profit do not take items affecting the comparability of the Group's EBITDA and operating profit into account, such as significant non-recurring items of income and expenses and amortisation of the fair value of assets recognised on the balance sheet by means of acquisition calculations. The purpose of the adjusted EBITDA and operating profit is to improve the comparability of the Group's EBITDA and operating profit between periods. The reconciliation of the adjusted EBITDA and operating profit is presented on page 15 of the interim report.
2) The calculation of the number of personnel has been revised in the review period so that the number of personnel at the end of each month has been added together, and the amount thus obtained has been divided by the number of months in the review period. The comparison information has also been adjusted to correspond to this calculation method.
"Considering the challenges in the operating environment, the first quarter of 2024 was favourable for Wetteri. The Group's revenue was
In Wetteri's business segments, revenue growth was highest in the Passenger Cars segment, where revenue rose by 92% to
The revenue of Maintenance Services increased by 76% and was nearly
Wetteri is on its way to becoming the largest and most profitable player in the automotive sector by the end of 2025. Wetteri's growth strategy is acquisition-driven, and this strategic choice is based on a megatrend shaping the automotive industry, driving the industry to focus on fewer larger players. The transformation of the automotive industry is being driven by numerous smaller changes in technology, operating models and consumer behaviour. The car trade is a business based on volumes, and economies of scale generate synergy benefits and give leverage to navigate the transformation of the operating environment.
Wetteri's acquisition-driven growth strategy is based on volume growth and decreasing costs as a result of synergy benefits, as well as improved margins. To improve the profitability of operations, Wetteri has started to eliminate overlaps created by acquisitions by reorganising the administration and regional business management, for example. The efficient use of facilities is being assessed. In business acquisitions, the focus will continue to be on well-managed companies with strong development potential, whose culture is close to Wetteri's. This helps ensure successful integrations and the realization of practical benefits as soon as possible.
Wetteri differs from many other operators in the automotive sector because of its comprehensive business model and extensive offering. Wetteri's business model covers the sale of new and used passenger and commercial vehicles, as well as the sale of heavy vehicles. In addition, Wetteri offers a wide range of maintenance services and repair shop services, as well as spare parts and tyre services in all vehicle categories. Through acquisitions, Wetteri has become stronger by means of a wider service network, new brand representation and brand-specific expertise, for example. Wetteri's business model and
This year, the number of first registrations of new passenger cars is expected to be 76,000, still well below the long-term average. There is a strong need for renewal in
In 2024, we will continue to execute our growth strategy with determination. In early 2024,
Estimate of developments in 2024
Challenges in the availability of new cars have mainly been resolved, and deliveries from the order backlog, which started in 2023, will continue in 2024. Economic uncertainty may reduce the demand for new cars in all vehicle categories, and the number of first registrations is expected to be lower than in 2023. The recent signals of stabilised interest rates and a change in the direction of inflation may increase the demand for new cars in all vehicle categories, and the used car trade is expected to continue to grow. Maintenance operations are expected to continue at a strong level. Customer orders are expected to increase from the previous year.
Wetteri's disclosure of financial information in 2024
Oulu 21 May 2024
Wetteri Plc
Board of Directors
Further information:
Tel. +358 400 689 613, aarne.simula@wetteri.fi
https://news.cision.com/wetteri-oyj/r/wetteri-plc-interim-report-for-1-january-to-31-march-2024--favourable-first-quarter---strong-growth-,c3984625
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