Aramis Group - 2022 third-quarter activity
PRESS RELEASE
Arcueil, July 26, 2022
2022 third-quarter
activitySolid growth on refurbished
vehiclesProfitability impacted by
the market deterioration
Revenues at June 30, 2022, third quarter of the
fiscal year ending September 30, 2022
-
2022 third-quarter revenues came to €458.0 million, up +20.1% from
the third quarter of 2021. Two still strongly diverging trends,
with a +66.7% increase to €327.7 million for the refurbished
vehicle segment, and a -65.7% contraction to €46.1 million for the
pre-registered vehicle segment. The volumes of refurbished vehicles
sold climbed +28.0%, with a further increase in the percentage of
vehicles sourced from private owners, which now stands at 62%
-
Growth driven by continued very high customer satisfaction (NPS of
69 at end-June 2022), highlighting Aramis Group’s effective
management of its competitive advantages and its teams’ constant
commitment to ensuring the best products and services
-
Continued rollout of the strategy, with the acquisition, subject to
minor conditions precedent, of Onlinecars, the Austrian market
leader for refurbished vehicle sales, and the inauguration of the
second refurbishing center in France, in
Saint-Pierre-Lès-Nemours
-
Market environment that remains uncertain, with sourcing
difficulties and a certain wait-and-see attitude among consumers.
Aramis Group is adapting its offering to this context, accelerating
its inventory rotation and protecting its profitability
-
Confirmation of 2022 revenues of over €1.7 billion, with
around +40% growth in refurbished vehicle volumes (vs. over +45%
expected previously). 2022 adjusted EBITDA revised to between -€10
and -€12 million (vs. positive figure expected previously)
Aramis Group [Ticker: ARAMI – ISIN:
FR0014003U94], European leader for B2C online used car sales,
operating the Aramisauto, Cardoen, Clicars and CarSupermarket
brands in France, Belgium, Spain and the UK respectively, is today
reporting its revenues for the third quarter of the fiscal year
ending September 30, 2022.
Nicolas Chartier and Guillaume Paoli,
co-founders1 of Aramis
Group: “During the third
quarter of 2022, Aramis Group’s teams once again showed their
outstanding commitment to customer satisfaction, helping drive
sustained growth in its business. This performance is particularly
notable as the automotive market continued to deteriorate over the
period, becoming more volatile and uncertain. Alongside the
pre-registered vehicle segment, which might not have reached its
low point yet due to the major sourcing difficulties seen, the
refurbished vehicle segment faces an increasingly wait-and-see
attitude among consumers. In response to this market environment,
Aramis Group is ensuring that its offering is appropriate and is
working to protect its balance sheet and profitability. With its
21-year track record, a business model that has proven its
resilience during previous crises, and the strategic and financial
support of its majority shareholder Stellantis, it is approaching
this cycle low with confidence. Aramis Group is moving forward with
its strategy, continuing to ramp up its refurbishing capacities and
pursue robust external growth, and is effectively positioned to
capitalize on all the opportunities that will enable it to further
consolidate its leadership in Europe for online refurbished vehicle
sales”.
2022
THIRD-QUARTER ACTIVITY
During the third quarter of 2022, ended June 30,
the Group recorded revenues of €458.0 million, up +20.1% from the
third quarter of 2021.
The automotive market became more complex over
the period. On the refurbished vehicle segment, the Group’s
strategic priority, which represented 89% of its B2C volumes in the
third quarter of 2022, a certain wait-and-see approach among
consumers has been seen over the past few weeks. On the
pre-registered vehicle segment, the negative trend has accelerated,
while the sourcing of this type of vehicle has become very
complicated due to the continued shortage of new vehicles against a
backdrop of persistent supply chain disruption (semiconductors, war
in Ukraine, Covid-19).
Overview of volumes and
revenues
2022 third-quarter B2C volumes
In units |
On a reported basis |
On a pro forma basis |
On a reported basis |
|
Q3 2022 |
Q3 2021 |
Change % |
9M 2022 |
9M 2021 |
Change % |
9M 2022 |
9M 2021 |
Change % |
Refurbished |
18,357 |
14,346 |
+28.0% |
51,742 |
35,763 |
+44.7% |
51,742 |
29,914 |
+73.0% |
Pre-registered |
2,232 |
8,851 |
-74.8% |
10,064 |
23,055 |
-56.3% |
10,064 |
23,055 |
-56.3% |
Total B2C
volumes |
20,589 |
23,197 |
-11.2% |
61,806 |
58,818 |
+5.1% |
61,806 |
52,969 |
+16.7% |
2022 third-quarter revenues
By segment
In million € |
On a reported basis |
On a pro forma basis |
On a reported basis |
|
Q3 2022 |
Q3 2021 |
Change % |
9M 2022 |
9M 2021 |
Change % |
9M 2022 |
9M 2021 |
Change % |
Refurbished |
327.7 |
196.6 |
+66.7% |
902.7 |
498.0 |
+81.2% |
902.7 |
418.4 |
+115.8% |
Pre-registered |
46.1 |
134.4 |
-65.7% |
197.4 |
342.4 |
-42.4% |
197.4 |
342.4 |
-42.4% |
Total B2C |
373.7 |
331.0 |
+12.9% |
1,100.1 |
840.5 |
+30.9% |
1,100.1 |
760.7 |
+44.6% |
Total B2B |
61.1 |
30.9 |
+97.7% |
160.6 |
81.4 |
+97.5% |
160.6 |
67.3 |
+138.7% |
Total Services |
23.1 |
19.3 |
+19.5% |
69.8 |
51.2 |
+36.3% |
69.8 |
44.1 |
+58.3% |
Revenues |
458.0 |
381.2 |
+20.1% |
1,330.6 |
973.0 |
+36.7% |
1,330.6 |
872.2 |
+52.6% |
By country
In million € |
On a reported basis |
On a pro forma basis |
On a reported basis |
|
Q3 2022 |
Q3 2021 |
Change % |
9M 2022 |
9M 2021 |
Change % |
9M 2022 |
9M 2021 |
Change % |
France |
196.6 |
194.9 |
+0.9% |
555.9 |
496.9 |
+11.9% |
555.9 |
496.9 |
+11.9% |
Belgium |
62.3 |
53.5 |
+16.4% |
178.7 |
140.5 |
+27.3% |
178.7 |
140.4 |
+27.3% |
Spain |
86.7 |
57.8 |
+50.0% |
273.7 |
136.4 |
+100.7% |
273.7 |
136.4 |
+100.7% |
United Kingdom |
112.3 |
75.0 |
+49.7% |
322.3 |
199.4 |
+61.6% |
322.3 |
98.6 |
+227.0% |
Revenues |
458.0 |
381.2 |
+20.1% |
1,330.6 |
973.0 |
+36.7% |
1,330.6 |
872.2 |
+52.6% |
Analysis of revenues by
segment
B2C – sales of cars to private customers (82% of
revenues)
Revenues for the B2C segment –
corresponding to sales of refurbished and pre-registered cars to
private customers – totaled €373.7 million in the third quarter of
2022, up +12.9% from the third quarter of 2021.
Revenues for the refurbished cars
segment came to €327.7 million, with +66.7% growth versus
the third quarter of 2021. 18,357 vehicles were delivered, up
+28.0%, a robust level despite the used vehicle market slowdown. To
be able to continue guaranteeing a wide selection of vehicles and
the best level of customer satisfaction, Aramis Group has continued
to ramp up its in-house refurbishing capacities, thanks in
particular to the opening of a new center in France in
Saint-Pierre-Lès-Nemours, south of the Paris Region. This site,
which will complement the longstanding Donzère site located in the
south of France, will make it possible to manage the Group’s
delivery times, logistics costs and carbon footprint more
effectively.
Revenues for the pre-registered cars
segment came to €46.1 million, down -65.7% from the third
quarter of 2021. Sourcing conditions saw a further deterioration
during the quarter due to the limited progress recorded on the
normalization of new car production. As a result, only 2,232 units
were able to be sold during the third quarter of 2022, which is
-74.8% lower than the same period in 2021.
B2B – sales of cars to professional customers (13% of
revenues)
Revenues for the B2B segment climbed to €61.1
million, driven by very strong growth of +97.7% compared with the
third quarter of 2021. This growth is a result of the increased
sourcing of vehicles from private owners, some of which are resold
to professionals (mainly vehicles over eight years old or 150,000
km).
Services (5% of revenues)
Lastly, services generated €23.1 million of
revenues, up +19.5% compared with the third quarter of 2021.
Financing solutions penetration rate increased in France and fell
somewhat in the United Kingdom in a context of rising interest
rates. On average across the Group, the penetration rate continued
to rise and is now close to 50%.
Acquisition of Onlinecars in
Austria
Last June, Aramis Group announced the
acquisition, subject to minor conditions precedent, particularly
concerning antitrust aspects, to acquire all the capital of
Onlinecars, the Austrian market leader for refurbished vehicle
sales, with more than 10,000 used vehicles sold in 2021, revenues
of over €200 million and an EBITDA margin of over 3%.
The acquisition of Onlinecars will open up a
number of operational synergies with Aramis Group and extensive
opportunities for sharing experience, as achieved with the Group’s
previous acquisitions. Aramis Group will enable in particular
Onlinecars to benefit from its industrial flow management and
refurbishing process optimization expertise, as well as its
know-how and the tools from its technological and data platform.
Alongside this, Onlinecars will help consolidate the major network
of suppliers and brands built up by Aramis Group, which represents
one of its many competitive advantages.
The transaction is fully financed through an
increase in Aramis Group’s credit lines with Stellantis, which
willcontinue to be a powerful support to Aramis Group's
development, accompanying its strategic internationalexpansion.
OUTLOOK
In a volatile market, Aramis Group is adopting
its product and service offering, accelerating inventory rotation
and keeping its cost structure under control, to protect its
balance sheet and profitability.
Over the coming quarters, the Group expects:
- Its sales volumes on the
pre-registered vehicle segment to remain very
low;
- Its sales volumes on the
refurbished vehicle segment to continue growing,
driven by the underlying market trends (including the essential
positioning of vehicle-based mobility and the digital
transformation underway for the distribution of cars),
independently from the potential deferral of certain purchases by
households;
- Sales prices to
remain high, although they are stabilizing in the third quarter of
2022;
- The
gross profit per
unit (GPU) to contract, decreasing in the
second half of 2022 to an average level around -10% below that
achieved in the first half of 2022 (€2,311 as a reminder), before
stabilizing at around €2,150 per unit on average, in line with the
objectives communicated at the time of its IPO.
2022 full-year objectives are adjusted as
follows:
- Revenues of over €1.7 billion
(unchanged);
- Growth of around +40% in
refurbished vehicle volumes (vs. over +45% previously);
- Negative adjusted EBITDA between
-€10 and -€12 million (vs. positive figure previously).
These objectives are on a like-for-like basis,
i.e. they do not include the impact of Onlinecars, which will be
consolidated from the start of the Group’s next fiscal year2.
***
Next financial information:
2022 full-year results: December 1, 2022 (after
market close)
About Aramis Group
Aramis Group is the leading European B2C
platform for online used car sales, operating the Aramisauto,
Cardoen, Clicars and CarSupermarket brands, in France, Belgium,
Spain and the UK respectively. The Group is transforming the used
car market and harnessing digital technology to support customer
satisfaction with a fully vertically integrated business model. For
the first half of FY 2022, Aramis Group generated revenues of €873
million, sold more than 41,000 vehicles B2C, and recorded more than
40 million visits to its websites. At end-March 2022, the Group had
more than 1,800 employees, a network of 60 agencies and four
industrial refurbishing sites. Aramis Group is listed on Euronext
Paris Compartment A (Ticker: ARAMI – ISIN: FR0014003U94). For more
information, visit www.aramis.group.
Disclaimer
Certain information included in this press
release is not historical data but forward-looking statements.
These forward-looking statements are based on current beliefs and
assumptions, including, but not limited to, assumptions about
current and future business strategies and the environment in which
Aramis Group operates, and involve known and unknown risks,
uncertainties and other factors, which may cause actual results or
performance, or the results or other events, to be materially
different from those expressed or implied in such forward-looking
statements. These risks and uncertainties include those discussed
or identified in Chapter 3 “Risk Factors” of the Universal
Registration Document dated January 26, 2022, approved by the AMF
under number R. 22-004 and available on the Group’s website
(www.aramis.group) and on the AMF website (www.amf-france.org), and
specifically those identified in sections 3.1.1 “Risks related to
general economic conditions and their trend”, 3.1.2 “Risks relating
to trends in the automotive industry”, 3.2.1 “Risks related to the
procurement of used cars” and 3.2.2 “Risks related to price changes
on the used cars market”. These forward-looking statements and
information are not guarantees of future performance.
Forward-looking statements speak only as of the date of this press
release. This press release does not contain or constitute an offer
of securities or an invitation or inducement to invest in
securities in France, the United States or any other
jurisdiction.
Investors contact
Alexandre LeroyHead of Investor
Relationsalexandre.leroy@aramis.group
+33 (0)6 58 80 50 24
Press contacts
Brunswickaramisgroup@brunswickgroup.comHugues
Boëton +33 (0)6 79 99 27 15Alexia Gachet +33 (0)6 33 06 55 93
1 Nicolas Chartier is Chairman and Chief
Executive Officer of the Company, and Guillaume Paoli is Deputy
Chief Executive Officer, based on a two-year rotation 2
Aramis Group’s financial year runs from October 1 to September
30
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