Good morning. Welcome to Camux Quarterly Results Presentation. My name is Juha Karl Leokowski. I'm CEO and Founder of Kamuk's.
Good morning. My name is Marco Lehtonen. I'm Kamuk's CFO.
There is very nice weather, as same as our figures. This presentation, 1st week Q1 in brief, then we check our financial development, our strategy, outlook and financial targets and then we summarize these. Our vision is to be number 1 used car retailer in Europe. In these six areas what we always tell to investors, If we compare to Q1 2020 2021, Last year, January February went well, but in March, last 2 weeks, it experienced significant change. And in this year, in Finland and Sweden, the market was quite good.
If we think that this COVID-nineteen situation. But in Germany, we had lockdown and we're mainly selling remotely these cars the whole Q1. Our revenue increased 25.4 percent to near to EUR 210,000,000 And of course, we are very, very happy about that and proud about that. And our gross profit increased by 26.9% to €23,200,000 and adjusted operating profit increased by 44% to €5,700,000 Like for like revenue increased by 12.8% and it's very strong figures in this side. Comox internalization progress and total revenue increased in Sweden by 47.8% at over €66,000,000 and in Germany by 40.3 percent over €21,000,000 And especially in Germany, when we think about the situation, what we have had in this Q1, It's very strong growth in Germany.
Then the market situations, how the total market worked in these countries. In Finland and Sweden, the market in Finland slightly increased, but and Sweden increased. And in Germany, it declined. And we think about the Germany that the market was declined and our revenue growth was over 40%. It's a very strong growth in this period.
Also in Finland, it was over 20% growth. And if you compare to market situation And also in Sweden, even the market growth, our growth was nearly 50%. Of course, growth is very, very important for us and also one key point to our strategy, to grow faster than earlier, but also that the growth is profitable growth. And this is nice that our figures are growth is 25% and adjusted operating profit over 40%, and it went the right way. We sold a little bit more than 2,000 cars more And Euroco, 16,200 cars and growth Per per PC was 14.2%.
And as we see that it's a lower number than our revenue growth, and it means that our average price grew over 10%. And this trading environment has nearly returned to normal in Finland and Sweden. Integrated Services revenue related development was impacted by increased average sales price because we have many products which are euros or krones per sold car. And when the revenue is higher per car, it means that it's a smaller part of this revenue, this Integrated Services. Also in Germany, Integrated Services revenue was impacted by difficulties with sale of finance related Add additional contracts during the lockdown.
This is also a very big situation in German's market. But still, if you compare last year, it was €8,900,000 revenue from Integrated Services and this year Q1, €9,400,000 We announced last week Our openings in Oulu, which is our new strategy model that we opened this processing center and also store in Oulu, which the Comox own and it's coming we opened it start of next year. And It's 4,000 square meters size. And last week, we opened in Katteberg in Sweden. It's our biggest store ever.
And this is to our also plan that we Don't open so many stores, but these stores what we open are bigger than earlier. Nowadays, we have in Finland 50 stores Sweden 21 and Germany 8 stores, totaling 79 stores. And then, Marco, here you are, tell about the financial development.
Thanks, Johan. I'm glad to do that. I have to note that the mood in the used car market at the moment In May is relatively different compared to last year. So due to the corona pandemic, the situation last year was quite unusual. If we start with the things what I have listed and I think are important for the shareholders.
And of course, if we think about our balance sheet and our operating cash flow, so the inventory level is very significant factor. And it's good to keep in mind that we when we published our new growth strategy in March, so we have Started already to add the level of inventory at the end of Q4 last year, and we have been doing that also now during the Quarter 1. And of course, it's impossible to grow in this business if you do not have adequate level of inventory. In any case, even though we have been adding the inventory, the return on equity was 26.5% and was very strong It was growing from the last year. Also equity ratio was 45.4% and it improved slightly compared to previous year.
After the comparison period, the first installment of the dividend, EUR 0.11 per share, was paid at the end of the April And the earnings per share, which was €0.09 it was growing 36.5% from the previous year. And all in all, our strong financial position is giving us a very good foundation for the growth strategy. If we then move on to the key figures, I'm not going to repeat the same figures what Johan just But I will make few highlights here. And firstly, gross profit being 11% was growing slightly Compared to the previous year, atjastik operating profit 2.7% was growing slightly also compared to previous year. What we can be very satisfied is that the like for like growth was 12.8%, Very strong development compared to the previous year.
And revenue from integrated services was growing compared to previous year, But as Johan was mentioning, due to the slightly increased average selling price, so Relatively compared to revenue, it was a bit smaller compared to previous year. As we were buying and buying Stock and increasing the stock levels for our most important sales period, which is being the spring and the summer season. So it was also strongly impacting our inventory turnover. So inventory turnover was 50 4.3 days and it was increasing compared to the previous year. If we then talk about our business segments and start with the Finland.
And of course, in Finland, we had a very strong and very profitable growth in the Q1. It was Very strong operating performance there. And especially if we think about the growth and like for like growth, It has to be noted that last year after the comparison period, we opened only one store in Tornio in May. So really the new growth from the new stores has been relatively limited. In Finland, the revenue increased 20.3% And gross margin was increased to €18,500,000 being 12.6 percent of revenue And operating profit increased 42.1 percent being €8,300,000 Integrated services revenue increased to €8,200,000 being 5.6% of revenue, which was slightly smaller compared to the previous year.
In Sweden, We had a very strong revenue growth in the Q1. We have been growing 40 7.8 percent and the gross margin increased to €3,800,000 However, we were Significantly putting effort and investment to the growth, but we were not also happy for the margin level And also for the operating profit. Margin levels were slightly impacted by increased sales between the group companies, But still also operatively, we were not fully satisfied for the profitability level in Sweden. In Sweden, the growth was also driven by the new showrooms and of course, like for like growth. I would also like to note that in Sweden, Tomi Iskomaki, who is very experienced and seasoned Camux leader, started as a country manager starting 1st March.
I'm confident that he will deliver well in Sweden. Germany. The story in Germany is relatively different compared to the other markets. We had a very strong revenue growth despite the lockdown. But however, in the lockdown, we in the lockdown situation when we Had to sell only remotely.
We were keeping the inventory turning, which means that we lost some in the margin. And if we look that the total revenue increased 40.3%, but the gross margin was €900,000 which was basically in the last Gear level. Operating loss increased and was €1,000,000 We had also In the Q1, constantly part of our people in the German Kurz Arbeit, so to say, Temporary layoff model. In Germany, the integrated services revenue declined. And as Johan was mentioning, Very important part of that revenue is that we are selling additional contracts and services, which are related to the financial contracts.
And in this remote selling environment that was then deemed difficult. And then of course that result we can see here. In Germany, the revenue growth was driven by the new showrooms. If we then start to put more eyes Into the balance sheet and on the cash flow side. So we invested in the purchasing and raised the inventory levels according to our updated growth Strategy.
And our net working capital was growing 57.2% and inventory is Growing 57.6 percent being roughly €122,000,000 The growth here looks relatively significant, But have to keep in mind that the last year end of March, the mood was very, very different. And of course, also the trading environment was very, very different. That is, of course, partially impacting this change here. Of course, When we have been growing the inventory, it hasn't for that period a Significant impact to the cash flow from the operations and especially when we started To increase the inventory in Q4 and continued in Q1. So this, so to say, step change has been impacting the cash flow And being now minus €13,000,000 in the Q1.
Of course, that impacted To our cash situation, but we still had roughly €15,000,000 short term credit limits not used. So I'm not personally concerned about the situation. Our cash situation is very good. If we then go to the investments, According to our new strategy, we have been continuing to invest in knowledge management, which means our digital systems and functions. And investments in the Q1 was roughly €1,200,000 so not big change for our investment profile as compared to the before.
And we also published after the Q1 our investment Oulu for the new bigger store and the processing center, which will happen during this year. We have been also in the group functions centralizing resources and people more Today, center which are serving or which are developing systems or processes for the whole group benefit and for the whole group usage. And this is, of course, also according and along with the new strategy we published. It is good to still repeat and memorize Why we are doing this? And the targets here are really to create the best online customer journey and improve and streamline our core processes.
We have roughly over 900,000 direct Visits to our own websites in Finland, Sweden and Germany. And if you think about the cross selling or click and collect as we speak about that, It was now in the period 36% in Finland and 31% in the group, where we can see also some growth compared to last year. In the Finland, last year it was 33% and in the group 29%. So this cross selling or click and collect has also developed positively during this period. I will now move to the strategy And outlook and our financial targets.
We have been relatively busy implementing our new strategy, And I'm very pleased to tell you quite about quite many developments we have. If we start With Omnichannel Customer Experience and Services, we launched a pilot in Finland For Kamux Hualeton, if I would translate it, it would mean Kamux Carefree and that is a monthly fee driving service As a pilot, if I look at the FV's and processes and scalability, so we opened last week A megastore in Gothenburg, as Johan was mentioning, the biggest ever we have. And also, we published the strategic property investments In Oulu. About utilizing data and leading with the knowledge, Camuk's management system, So meaning our own sales and CRM system, it's in use in Germany and we will gradually implement it during this year for the whole group. And about developing capabilities and continuous learning, the focus is now in the leadership and supervisory skills training and development.
Let's then go through once more our financial targets. The targets being revenue growth over 20% annually, annually increasing adjusted EBIT And adjusted EBIT margin over 3.5 percent return on equity over 25% and target to distribute dividends at least 25% of net profits. And the targets, of course, are in line with our new growth strategy. And I think the Biggest change compared to previous is really about the dividends where we are now channeling more net profits The company growth and investments, what is needed to growth. And if we look on the past, So we can see that the dividends have been, of course, growing very strongly.
But of course, now we are assessing the situation carefully and looking What investment and what capital we need for our growth. And now I will then summarize this all. In quarter 1, revenue increased by 25 0.4% to €209,900,000 Gross profit increased by 26.9 percent To €23,200,000 Adjusted operating profit increased by 44% to €5,700,000 Like for like showroom, revenue increased by 12.8% and Camux internationalization progressed And total revenue increased in Sweden by 47.8% and in Germany 40.3%. In Finland and Sweden, all stores were open. In Germany, the lockdown continued in January to March And car sales were mainly remote selling.
Thank you for your attention and we are very happy to answer your questions.
Congrats on the strong quarter. In recent quarters, you have mentioned challenges in purchasing inventory. Was the tailwinds from the strength in the new cars market enough for you to be able to increase Inventory or did you have to compromise on purchase prices?
It is very positive that there was a slight growth in the new car market and we think that is very natural and positive development. However, I think as we have discussed and also described before that we are always looking at the current situation What are the currently market prices to buy and to sell the cars? And we have, of course, own demands for that. And when we launched the new strategy in Capital Markets Day, we also said that the target is not or our aim is not to grow by slashing the margins.
Operator, we are ready to take questions.
Thank you. Our first question comes from Maria Brookstrom from Danske Bank. Please go ahead.
Thank you. I'm trying to ask in this English speaking conference now instead. I still have some questions left. And one is on the competition situation in Finland. Obviously, like one of the Your competitors, Saka, has been growing, I mean, very fast as well.
I mean, so have you as well. But how would you describe the competition Situation currently in Finland in used car retail, please.
The big picture, we are happy that we have competitors in all countries And it tells also that the Camux has made many things, so that This is the very interested part of car business, this used car business. And It means that the biggest player take the market share from the smallest one And also it tells that consumer to consumer trade went all the time down. And It means that we must be better than the other competitors we can take to market share and as we've sort in for AXIS Q1 that we can do that. But I think that in the whole used car business, it's good that there are many strong players in the market.
Okay. And then maybe one more on the Ancillary services and the profitability of those, I think we talked about for some time that I mean given the profitability is not as good in Sweden, for example, than it is in Finland that It improves with scale and you would perhaps think about, I mean, pooling the volumes to getting the better terms with your finance partners. Do we have like any update on these ancillary services? And I mean, how where you are in terms of raising the profitability In Sweden and Germany, you may be coming up with new products, which could have better profitability.
Thanks, Maria. In with the integrated services and finance and insurance, so We look at the contracts annually and compete them on the market annually. And then Of course, so to say, we use those services. If thinking about the Q1, our penetration rates Actually, we're, I would say, good. So no big changes compared to the past or the previous periods.
But as I was saying, there was Relatively big challenges in Germany To sell additional contracts or services related to the finance contracts, and that can be, of course, seen in our revenue. And then if we look on Finland or Sweden, we can see that when our average price has been increasing, so meaning that In the revenue is increasing. In those contracts, there are components which are more transactional euro based, not so much For the selling price necessarily, and that is, of course, impacting that volume was in the quarter 1 growing less, but There is not like changes in the conditions or so.
Okay, perfect. I have no further questions.
Okay. That's then with the phone questions. And then we have a couple more. Inventory turnover decreased in the quarter. Days went up.
So do you expect turnover to grow in the future? Do you have a target level?
We are happy between 40 days should be in the 3 days it's been 40 to 50 days. And of course, it's better if we are near to 40 days. But as Marco mentioned that not just now was the time when we increased our inventory. And if we think that the biggest part of that came in March, and it means that We don't we didn't sell these cars out and inventory growth inventory grew, but without sales. And it means that the return over went wrong way.
But this is very important key PI for us and we are careful about that. And if we compare back a year, Q1 at the end of Q1, there was COVID situation in and we sold hardy the cars out and take the cash in. And now it's the other type of situation in the market and in how we approach this 2021 spring summer.
Good job with the growth. Related to operating profits, could you explain why operating profits have declined in Germany and what you expect in the future In terms of operating profit.
Let's start with the expectations. We have been Telling in March our financial targets being on the group level 3.5%, we have not published a target level for the countries Individually. And as I was describing, but maybe I will do it a bit more deeper. So the trading and business environment in Germany in the Q1 was very difficult. So we had a lockdown, so meaning the stores were Mainly closed and we were mainly selling remotely the cars, which of course had quite significant difficulties for our trading and normal business operation.
We had also people in temporary layoff or as German Verdis Kurzarbeit. So we had possibilities maybe to save there some cost, but of course, It doesn't offset those difficulties with closing of the stores had there.
And that finishes our questions in English.
Thank you. Thank you very much and have a nice spring.