Feb 24 • 17:14 UTC 🇫🇮 Finland Iltalehti

Harsh assessment of a famous car dealership

Kamux, a used car dealer, is currently defending its profitability amidst market share losses to competitors in Finland and Sweden.

Kamux, a well-known used car dealership, is facing significant challenges as it reports a decline in market share in Finland, losing ground to competitors such as Saka and K-Auto. The company is due to release its results on Wednesday, and analysts are predicting a decrease in revenue alongside a slight increase in operating profit for the last quarter. The latest assessments highlight how competition has intensified in the auto retail sector, particularly affecting Kamux's business in Finland, which remains critical for its overall performance.

In addition to domestic troubles, Kamux is experiencing difficulties across the border in Sweden, where the company has been grappling with issues related to staffing, store network, and product offerings, as pointed out by Maija Vehviläinen, a news chief from Kauppalehti's stock market department. These challenges indicate not only operational hurdles but also suggest that Kamux's international expansion strategy may need reevaluation to effectively compete in these markets. The sentiment is that conditions abroad have been rather grim, contributing to overall corporate uncertainty.

Despite these setbacks, there are some optimistic forecasts regarding Kamux's potential recovery. Analysts expect a revenue of 209.9 million euros with an operating income of 2.5 million euros for the final quarter of the year. There is a hint of hope with suggestions that the Swedish business turned profitable in the last quarter, which could indicate a turning point. Analysts express the need for Kamux to experience volume growth this year, which is crucial for buoying its stock and stabilizing its financial outlook as the company seeks to regain customer confidence in a competitive landscape.

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