Hello. Welcome to Camux's Javier Results Presentation. My name is Juha Karl Leogoski. I'm CEO and Founder of the Camux.
Good morning. My name is Paragol Hetonen. I'm Camux's CFO.
Okay. There we see table of contents. First, Q2 in brief. Then we check our financial development. After that, strategy, outlook and financial targets.
And then we summarize this. As we remember, Camux Vision is to be number 1 used car retailer in Europe. We made a huge revenue increase in Q2 By 52%, up to €228,800,000 As we in March announced our new strategy, And these figures find out what we made and we made as we spoke about our storage Planning. It's good to keep in mind the comparison period in Q2 2020. Sold units were less than in Q2 twenty nineteen, minus 5%, if I remember right.
So comparison period was exceptional week. Q2 gross profit decreased and it was €20,500,000 It's important to remember that Q2 gross profit was impacted by EUR 3,700,000 In this, German one off impact. These extraordinary costs related to purchasing of cars in Germany. Our adjusted operating profit was previous year level, euros 6,800,000 And it was 3% of the revenue. We are very happy, our like for like Storeroom's revenue increased 37.9%, and it was very, very strong.
We grew in our every country very strongly, especially in Sweden and in Germany. And as I said, our growth was in line with our strategy. We accelerate growth. And the market, the used car market grew in all countries. We grew faster than the used car market in all countries.
In contrary to recent media news, Used car market has not been growing very strongly recently. For example, in Finland, Akorniggo AKL, Used car market grew in January to June, about 3%. With new car market, it's good to remember the comparison period last year was extremely weak. And this first half year, new car sales increased 25% in the Europe level. And in Finland, our market share is about 8%, and we maintain our market leader position.
In Sweden, we are in top 10. Camux position is among the 10 largest used car retailers. And in Germany, our market share is very small, but it's grew in German. Due to corona pandemic, we decided in March 2020 to concentrate on cheaper cars, But after that, situation has been normalized. Our revenue grew 52% And our adjusted operating profit was the same last year level.
As we see, our sold cars increased 25%. Difference between unit sales growth and revenue growth is caused by increased average sales price compared to comparison period. However, also sales in Unit was growing very strongly. Swedish and when we speak about integrated services, It increased €8,600,000 last year to this year to Q2 €9,900,000 Swedish and German growth has been stronger than in Finland, and their integrated services share from revenue has been lower than in Finland. Therefore, in group level, integrated services revenue has declined.
Q2 2020 integrated services revenue was higher as fees are coming with delay when revenue declined. Penetration was at all core level in all countries. Despite the Chairman, the finance sales was not so good level because there was this corona pandemic and a lot of the Digital Sales. New openings and showrooms. Today, both announced openings are according to our new showroom concept And size of showrooms will be significantly bigger than our previous showrooms.
For example, Kattenburg showroom is almost 4 times bigger compared amount of cars. We are currently working with several new projects, and I hope we can soon tell about new openings. And then, Marco, here you are, will you tell about the Financial Development.
Thank you, Johan. So in the Q2, we started to execute our growth strategy very swiftly and that is also visible And the KPIs important for the investors. It is good to keep in mind that as Juha was mentioning, the comparison period, So quarter 2 2020 was relatively exceptional and also relatively weak. If you bear in mind that, that time we made a decision that we were a little bit reducing the stock and we have been also buying a little bit cheaper cars. So meaning our average prices we pushed down last year in the second quarter.
And Also, we reduced the amount of stock. And that situation, of course, has been now normalized. And that is, of course, now visible in the numbers. We have been also progressing with our investment in Oulu, so where we are building a showroom and processing center. And in June, Camux issued 1st ever commercial paper in Finland.
And we raised €50,000,000 And we, of course, at the moment, we are able to get it in very affordable interest rates for us. The financing is used for financing the net working capital and our Oulu project building phase. Return on equity was 22% and it decreased slightly from the previous year and equity ratio was 39.3% decreased also slightly from the previous year. There was a strong impact from This positioning or change of our balance sheet our stock in the balance sheet, which I was mentioning. Our earnings per share was €0.04 and it declined 76.3% from the previous year.
It is good to keep in mind that in the previous year, in the Q2, we received €900,000 From the previous period's taxes based on the decision of the tax board in Finland And we also this year have been additional cost related to the purchasing case in Germany, Which is €3,900,000 impacting the earnings per share. So there has been quite some, so to say, Quite some extraordinary items happening there. And I would also like to remind that we have not Book any tax asset related to Germany, so meaning that these exceptional losses do not impact our tax position at this point of time. I would like to then a little bit open the situation and the case what we had related to the purchase of the cars in Germany. And if we start with the big picture, so we have been investing in purchasing in order to accelerate our growth And of course, to ensure the sufficient inventory for the summer season and I consider that that has been very successful.
However, with one procurement partner in Camux, Germany, so the cooperation proved to be disappointing. From this partner, we have been buying over 300 cars. And what is now under Kyut is the delivery of roughly 140 cars. And the reason why we decide To end the cooperation, the Commerzbank's legal proceedings was that there was continuous difficulties in deliveries where we didn't get acceptable solution for us. I think it's also good to understand that in used car business, It is common practice that the used cars are paid before the delivery.
And therefore, in this situation, we booked A 3,700,000 charge for the gross profit impacting and 200,000 charge impacting the other costs, So totaling €3,900,000 for the 2nd quarter. I would also like to underline that this Amount, NOK 3,900,000 is covering everything in this case. So we have not taken any assumptions about possible recovery of the amounts what we have there. Of course, we have also They did and reorganized the wholesale purchasing process and controlling controls internal controls we have in a changing purchasing market. And of course, we are also auditing this particular case.
If we then move to the key figures, there is a very big differences Between the quarters we have and I would also like to point out that it's a very big issue for us what has been happening With the average sales price of the cars, so if we think as I was mentioning that last year we decided To reduce the stock and also concentrate on the cheaper cars and situation has been now normalizing this year. So of course, that has quite big impact to the numbers throughout our P and L. And why is that? Of course, one Very big matter there is that if you look about the integrated services, You can see that in our foreign operations, we have a bit like a smaller Part of the revenue what is coming from the integrated services, but also we have in the integrated services components Income components which are not related to revenue, but more like units sold. So that altogether is of course impacting our gross profit in the period.
However, I'm not going to repeat maybe the Q1 second quarter Key figures which Juha already told you, but maybe concentrate more on the first half. And the revenue in the first half was euros 438,600,000, it was growing 38% and the adjusted operating profit was 12 point €4,000,000 growing 15.2%. Still I would like to remind that in the gross profit now In the Q2, we have €3,700,000 and in other operating expenses €200,000 related to the purchasing case in Germany. I would also like to point that the sales growth like for like showrooms was 37 0.9%, which was excellent in the period. The inventory turnover days was 46.5%, which was relatively in the last year level.
If we then move to our segments and start with the Finland. In Finland, we had a very strong revenue growth. The revenue increased 30.2 percent and it was €142,300,000 It's good to keep in mind Last year, in the comparison period, the conditions were very exceptional. In April, we had in a capital region actually closer. So the people movement was very Tricked it and of course that impacted heavily our business last year.
In the second quarter our gross margin increased to 18 €1,000,000 and being 12.7 percent, there is also visible what I was mentioning about The integrated services, so 1, where the sales price average sales price of the cars is a bit increasing Or normalizing, so of course then revenue from the integrated services is slightly relatively declining. We also took Camux management system in use in May and that was slightly impacting the business there, of course, causing slightly loss of Sales and gross profit, but also additional costs for the period. Currently, we are successfully using the system, so the implementation has been passed. The growth in Finland was driven by the new showrooms and of course also like for like growth. If we then move to our foreign operations, The total revenue in Sweden increased by 92% compared to previous year and was €74,800,000 And the gross margin increased to €4,900,000 being 6.5% of the revenue.
The operating profit declined compared to the previous year and was €300,000 We have been making in the period significant investments to the growth. And as for one example is the run up phase of the Codenburg, which we did. As Johan was mentioning, it is significantly bigger store what we have compared to our average stores what we have. And of course, running up that kind of business is taking also more effort and cost as well. In Sweden, the revenue of integrated services increased to €1,100,000 being 1.8% From the revenue and there is also impacting the average sales price, which has been increasing.
In Sweden, the growth was driven by new showrooms and sales growth of like for like showrooms. Then in Germany, the situation has been maybe the most unusual this year. It's good to keep in mind that in Germany, the government has been having strong limitations to the business until the end of June and it was variating by the states and of course by the infection rates we had. And technically speaking, until May, we were mainly operating so that the customers are not able to enter stores, we had to serve them outside. And currently, we are operating normally, but of course, need to use the masks and we need to, of course, have Enough space for the customers.
In Germany, the total revenue increased 113.2 percent, Being €26,700,000 and the gross margin was negative €2,400,000 And of course, heavily impacted by the €3,700,000 charge what we made. Operating loss increased compared to the previous year and was €4,500,000 and to the operating Loss, there was impact of €3,900,000 related to the purchasing case. Integrated services revenue declined and was €400,000 being 1.7% of the external revenue. In these circumstances, we had a slight impact to the sales of the financing in Germany As we couldn't really welcome the customers to showrooms, but were more or less digital sales in the comparison period in the reporting period. And in Germany, the growth was driven by new showrooms and sales growth of like for like showrooms.
Then if we move to the balance sheet side and look about our net working capital and our inventories. Firstly, I would like to start by looking at the comparison period and we can see that as I was mentioning that the Quarter 2 last year was relatively exceptional because usually the quarter 2 is always bigger than the quarter 1 because we are Increasing the stock for the summer season, but last year that was not the case. Therefore, of course, the net working capital, but also the stock We're growing relatively rapidly. Why the net working capital was growing slower than the inventories was That excuse me, we had quite exceptionally large accounts payables That was related to the Finnish customs, so meaning they had a system change related to the car tax And of course, our debt related to the dividends. Debt related dividend payout.
In Coming periods or at the moment, we don't expect that the average stock Price or the unit prices there would be anymore not changing so rapidly. So the situation has been now normalized And the race what has been happening has been now taking place. Despite the increased purchases, net cash flow was at good level, being €6,000,000 of course, Impacted positively by the growth of accounts payables, but of course offset by partially by accounts by stock increase. Then we continued our investments according to the published strategy and namely investments 2,200,000 euros went to leading with the knowledge And of course, to this like a new concept according to new concept processing center and showroom in Oulu. And if you think about the total investment, €2,200,000, €1,200,000,000 went to fixed assets and 1 Point 0 went to the immaterial assets, so meaning mainly to the digital investments.
Then I move to the strategy outlook and financial targets. Short recap, what has been happening with our strategy implementations and we have there are 4 main areas where we focus. If we start with the omnichannel customer experience and services, we are currently now experiencing Collect the experience with from Camux Huallaton, which is monthly fee driving service in Finland. Then with the efficient processes and scalability, we have opened the Gardenburg Megastore and Processing Center and we are building The processing center showroom in Oulu. Utilizing data and leading with the knowledge, Camux management system was launched now in May in Finland, and it was already in use in Germany since the end of last year.
Then about developing capabilities and continuous learning, we have been now in the period focusing especially for our Sales managers capabilities, so their leadership and of course their business management capabilities. Then short recap about our financial targets for 2021 to 2023. So revenue growth of over 20% annually, annually increasing adjusted EBIT and adjusted EBIT margin over 3.5%, return on equity over 25% and target to distribute dividends at least 25% of net profits. And in January to June, Tech revenue was growing 38%. Adjusted operating profit increased slightly to €12,400,000 Adjusted operating profit margin was 2.8 percent return on equity, 22 And dividend payout from 2020 result 41%.
Our outlook for 2021 remains unchanged and we expect revenue to reach €800,000,000 to €850,000,000 And adjusted operating profit to increase from the previous year. Then short summary about the quarter 2. So revenue increased by 52% to EUR 228,800,000 Gross profit decreased by 0.5 percent to €20,500,000 At Zusty, operating profit was at Previous year level, €6,800,000 like for like showroom revenue increased by €37,900,000 At Camus, internationalization progressed and we were growing significantly in Sweden, 92% and in Germany, 113.2%. So it was in line with our strategy where we accelerate the growth. Thank you very much, and we are now happy to answer your questions.
Can you please quantify the impact from 1 off comps effects On gross margin, low purchasing price and decrease in inventory in Q2, what about your pricing power during the quarter? Do you think this pricing power could still be challenged during next quarters? What level of gross margins do you think you can reach in the next two quarters?
If we start with the last topic, so there I can only refer to our outlook and our financial targets. So we are not really giving guidance per gross profit per se. Our quarter 2 was strongly impacted by this unusual charge. However, also if you eliminate that, we were slightly on the low softer end. So we were not fully satisfied with that.
And of course, there is factors which I was mentioning, for example, in Finland. Finland, the implementation of the KMS, Of course, also in Germany, the case what we had, so these kind of things. But also one thing what is good to keep in mind that the margin levels have been still lower In our foreign operations and they have been growing much faster than our Finnish operations. So the sales mix has been also changing there.
How did Camux management system impact profitability as one would think it would rather affect revenue?
If you think about the implementation of the system, So what you do, you typically take quite significant investment to the trading of the people. You also reserve The now resources inside and outside of the company, so meaning that you really want with those resources, ensure the smooth Implementation and kickoff of the system. And of course, we can see also that when the people have been learning the system, So there has been challenges maybe to get the best out of margin there, but of course also certain revenue was Lost as well, that is no doubt. And then this additional cost what we took there. But as I was mentioning, so we did that in May And currently, we are operating relatively normally with the system.
Operator, do we have any questions by phone in English?
Thank you. We currently have no audio questions.
Thank you. Then we are done with the English part.
Okay. Thank you very much, and have a nice August Friday. Thank you. Bye bye.