Aramis Group - Business and results trends for 2022 first-half and
adjustment of full-year objectives
PRESS RELEASE
Arcueil, April
19, 2022
Business and
results trends for 2022 first-half
Full-year objectives adjusted
- Very sustained growth in
refurbished vehicle sales, Aramis Group’s core business, for the
first half of 2022, up +56% from the first half of 2021 pro
forma1, highlighting the success
of the Group’s value proposition for its customers and the
relevance of its strategy
- Market context becoming
extremely complicated on the pre-registered vehicle segment, with
volumes sold during the first half of 2022 down -45%
from the first half of 2021 on a pro forma
basis, without any improvement expected in the
coming months
- 2022 first-half revenues of
€873 million, up +47% pro forma, with
41,217 B2C vehicles
sold (refurbished and
pre-registered), up +16% from the first half of
2021
- Gross profit per
unit (GPU) generated during the first half of 2022
comparable with the level for 2021, highlighting the
robust features of the Group’s
vertically integrated business model, which is
unique in Europe
- 2022 full-year
revenues objective adjusted to
over €1.7 billion, compared with over €1.6 billion previously. Due
to the particularly difficult market environment on the
pre-registered vehicle segment, adjusted EBITDA will
nevertheless be significantly
below its initial objective
(originally set at around 1.5% of
revenues), while still
remaining positive
Aramis Group [Ticker: ARAMI – ISIN:
FR0014003U94], a 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 the first trends for its business and results over the
first half of 2022. The Group is also adjusting its full-year
objectives for the financial year ending September 30, 2022.
In a complex market environment, Aramis Group
faces two opposite trends, with their impacts accelerating in the
past few weeks:
On the one hand, Aramis Group’s business on the
refurbished vehicle segment, its strategic priority and
representing more than 80% of its B2C volumes during the first half
of 2022, is seeing very strong growth. Aramis Group’s value
proposition, focused on ensuring customer satisfaction through a
selection of vehicles that provide unrivaled quality and price, is
proving increasingly successful across Europe. The Group has
accelerated the opening of new refurbishing centers in the last few
months and further strengthened its agility in terms of sourcing,
capitalizing on its employees’ dedication and its technological and
industrial expertise, which are unmatched in Europe. The Group’s
very strong focus on buying B2C vehicles from private customers
through its digital platform enables it to ensure a continuous flow
of cars to be refurbished, as well as the depth of its selection
available online.
On the other hand, the Group is being affected
by the very limited availability of pre-registered cars due to the
major slowdowns on manufacturers’ new vehicle production lines,
linked in particular to a shortage of semiconductors. This has had
a major impact on performance levels in the pre-registered vehicle
segment, which the Group’s business in France and Belgium is
exposed to. Due to the continued uncertainty surrounding the
timeframe for a potential normalization of new vehicle production,
no significant improvement is expected to be seen over the coming
months. This trend has been compounded in particular by the
deteriorating geopolitical situation on the borders of the European
Union.
The price rises triggered by this exceptional
situation across the entire automotive market are not likely to
ease in the short term.
In this unprecedented context, Aramis Group is
confirming its strategic priorities and ramping up its development
of refurbished vehicle sales.
The Group’s preliminary results for the first
half of 2022 indicate a very strong growth in refurbished vehicle
volumes sold, up +56% from the first half of 2021, and a sharp
contraction in pre-registered vehicle volumes sold, down -45%
year-on-year, on a pro forma basis. 2022 first-half revenues
climbed to €873 million, up +47% pro forma. In total, 41,217 B2C
vehicles were sold, a +16% increase compared with the volumes for
the first half of 2021.
With its unique vertically integrated business
model and outstanding commitment of its teams, the Group
effectively commands all the links in the value chain. The
operational efficiency developed over the years is reflected in its
levels of gross profit per unit (GPU), which set the standard on
the continent, significantly outpacing its main European peers. For
the first half of 2022, this GPU is expected to be comparable with
the full-year figure for FY 2021, highlighting Aramis Group’s
ability to rapidly adapt to even the most extreme market
conditions.
Despite the sharp slowdown in activity on the
pre-registered vehicles segment, adjusted EBITDA for the first half
of 2022 will remain positive, once again positioning Aramis Group
as the only operator in its sector to combine rapid organic growth
and a proven business model.
2022 full-year objectives
adjusted
For the full financial year 2022 (ending
September 30, 2022), the Group is still forecasting strong revenues
growth compared with FY 2021, with over €1.7 billion expected (vs.
over €1.6 billion previously). This performance will be driven by
strong progress with refurbished vehicle volumes (at least +45%),
as well as a significant price effect. The volumes of
pre-registered vehicles sold are expected to contract sharply (at
least -50%), with the entire automotive industry reporting
historically low inventory levels.
The gross profit per unit (GPU) will continue to
benefit from the Group’s effective management of its industrial
capabilities and agility with its multi-channel sourcing. The
figure for FY 2022 is expected to be close to the level for FY
2021.
However, as the total number of units of
vehicles sold (pre-registered and refurbished) is now expected to
come in below Aramis Group’s original objectives, the absorption of
SG&A costs will be less effective than expected. In addition,
in terms of marketing, Aramis Group is continuing to ramp up its
efforts to generate traffic with a view to both boosting its online
sales and promoting its offer to buy vehicles from private
customers. Alongside this, the Group is continuing to invest in
further strengthening awareness of its brands through targeted
advertising campaigns. As a result, adjusted EBITDA will come in
significantly below its initial objective (which was about 1.5% of
revenues) while still remaining positive.
Lastly, from a balance sheet perspective, the
business model’s evolution, replacing pre-registered vehicles
(requiring limited technical work) with used vehicles purchased
from private owners (requiring a more in-depth technical review),
is leading to a natural evolution in terms of refurbishing and
logistical intensity. This is resulting in a longer inventory
turnover and an average increase in inventory levels in terms of
days of activity, while their value is also rising due to the
external factor of widespread price inflation.
Aramis Group’s full-year objectives for FY 2022
can now be summarized as follows:
|
Previous full-yearobjectives for
2022 |
New full-yearobjectives for
2022 |
Revenues |
Over €1.6 billion |
Over €1.7 billion |
Growth in B2C volumes sold of refurbished vehicles |
Over +45% |
Over +45% (unchanged) |
Adjusted EBITDA |
Around 1.5% of revenues |
Over 0 |
These new full-year objectives are like-for-like
and do not include any assumption for a further significant
deterioration in automotive market conditions or the current
geopolitical situation.
Aramis Group’s strategic priorities, sound
financial position and longer-term outlook remain unchanged:
the Group is continuing to develop on a major used vehicle market
(over €400 billion annually), which is extremely fragmented and
currently being disrupted. Aramis Group benefits from proven
competitive advantages on this market, thanks in particular to its
vertically integrated business model, its excellent knowledge of
customers’ needs across each of its geographies, and its continued
support from Stellantis, its majority shareholder.
Aramis Group is therefore able to reconfirm the
ambitions set out at the time of its IPO, aiming to generate, on a
like-for-like basis, at least €3 billion of revenues and a 3%
adjusted EBITDA margin by 2025, and then at least €6 billion of
revenues and an 8% adjusted EBITDA margin by 2030.
The Group will release its full set of results
for the first half of FY 2022 on May 16, 2022, after market
close.
***
About Aramis Group
Aramis Group is a 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 FY 2021, on
a pro forma basis, Aramis Group generated full-year revenues of
€1.36 billion, sold more than 80,000 vehicles B2C, and recorded
more than 73 million visits to its websites. At end-September 2021,
the Group had more than 1,800 employees, a network of 60 agencies
and three industrial refurbishing sites. Aramis Group is listed on
Euronext Paris Compartment A (Ticker: ARAMI – ISIN: FR0014003U94).
For more information, visit www.aramis.group.
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
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).
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.
1 Pro forma for CarSupermarket’s acquisition in the UK in March
2021
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