Wetteri Plc financial statements bulletin for the financial year 1 January to 31 December 2024: Revenue increased – challenging market situation weighted on profitability

Wetteri Plc Financial Statements Bulletin 13 March 2025 at 9.30 EET

This is a summary of Wetteri Oyj's financial statements bulletin. The financial statements bulletin is attached in its entirety to this summary and can be read on the company's website at www.sijoittjat.wetteri.fi/en.

The key figures and information for the financial years 2024 and 2023 presented in the financial statements bulletin include both the Group's continuing and discontinued operations, unless otherwise stated.

Summary of the review period 1 October to 31 December 2024
 

• The Group’s revenue was EUR 116.8 million (EUR 131.1 million)
• Adjusted EBITDA was EUR 3.6 million (EUR 6.8 million)
• The adjusted operating profit was EUR -0.3 million (EUR 3.3 million)
• The operating profit was EUR -1.8 million (EUR 0.7 million)
• The revenue of the Passenger Cars segment decreased by EUR 20.2 million (-23%) year-on-year
• The revenue of the Heavy Equipment segment increased by EUR 6.6 million (43%) year-on-year
• The revenue of the Maintenance Services segment increased by EUR 2.6 million (12%) year-on-year

 

Summary of the financial year 1 January to 31 December 2024

 

• The Group’s revenue was EUR 514.5 million (EUR 443.3 million), with an increase of 16%, which was mainly generated through strategic acquisitions
• Adjusted EBITDA was EUR 20.7 million (EUR 24.9 million) 
• The adjusted operating profit was EUR 5.1 million (EUR 12.0 million) 
• The operating profit was EUR -0.2 million (EUR 5.4 million) 
• The revenue of the Passenger Cars segment increased by EUR 43.3 million (15%) year-on-year; invoiced sales of used cars grew by 58%
• The revenue of the Heavy Equipment segment increased by EUR 15.4 million (23%) year-on-year
• The revenue of the Maintenance Services segment increased by EUR 21.5 million (28%) year-on-year
• The car dealership business operations of the Suur-Savo Cooperative became part of Wetteri through an acquisition on 1 January 2024
• Suvanto Trucks Oy became part of Wetteri through a share exchange on 29 February 2024
• Lahden Rekkapaja Oy became part of Wetteri on 28 June 2024
• Wetteri announced that it will sell its subsidiary Wetteri Power Oy

Wetteri Plc’s financial guidance for 2025 

• Revenue EUR 510–540 million
• Adjusted operating profit EUR 9–11 million

Key performance indicators

 

 

EUR thousand	1 Oct to 31 Dec 20241)	1 Oct to 31 Dec 20231)	Change	1 Jan to 31 Dec 20241)	1 Jan to 31 Dec 20231)	Change
Revenue	116,765	131,089	-11%	514,519	443,287	16%
EBITDA	2,629	4,662	-44%	17,638	21,009	-16%
EBITDA, % of revenue	2%	4%		3%	5%
Adjusted EBITDA 2)	3,643	6,783	-46%	20,663	24,918	-17%
Adjusted EBITDA, % of revenue	3%	5%		4%	6%
Operating profit (loss) (EBIT)	-1,847	702	-363%	-188	5,351	-104%
Operating profit (loss), % of revenue	-2%	1%		0%	1%
Adjusted operating profit 2)	-302	3,343	-109%	5,088	12,030	-58%
Adjusted operating profit, % of revenue	0%	3%		1%	3%
Profit (loss) before tax	-4,715	-2,775	70%	-12,063	-3,824	215%
Profit (loss) before tax, % of revenue	-4%	-2%		-2%	-1%
Profit (loss) for the period	-3,873	-2,963	31%	-7,139	-4,049	76%
Profit (loss) for the period, % of revenue	-3%	-2%		-1%	-1%
Earnings per share from continuing operations, basic (EUR)	-0.02	-0.03		-0.10	-0.06
Earnings per share from continuing operations, diluted (EUR)	-0.02	-0.03		-0.10	-0.06
Earnings per share, basic (EUR)	-0.02	-0.02		-0.05	-0.03
Earnings per share, diluted (EUR)	-0.02	-0.02		-0.05	-0.03
Return on equity (ROE), %	-45%	-35%		-30%	-13%
Return on investment (ROI), %	-18%	-15%		-15%	-9%
Equity ratio, %	15%	16%		15%	16%
Liquidity, %	74%	83%		74%	83%
Average number of personnel during the financial year	974	1,007		1,016	926
Invoiced sales of new passenger cars (pcs)	782	848		3,472	3,322
Invoiced sales of new commercial trucks (pcs)	32	43		143	181
Invoiced sales of used passenger cars (pcs)	1,835	1,553		9,082	5,764
Invoiced sales of used commercial trucks (pcs)	122	29		406	114
Orders: new passenger cars (pcs)	974	699		3,647	2,862
Orders: new commercial trucks (pcs)	55	17		186	127
Passenger cars: order backlog at the end of the period	36,606	57,343		36,606	57,343
Commercial trucks: order backlog at the end of the period	21,743	13,655		21,743	13,655
Passenger car repair shop: hours sold	87,859	83,908		349,404	319,562
Commercial truck repair shop: hours sold	31,736	30,295		113,750	110,759

 

1) The financial performance figures for the 2024 and 2023 financial years include both the Group’s continuing and discontinued operations unless the name of the key figure indicates otherwise. The training business operations sold in the first half of 2024 and the subsidiary Wetteri Power Oy sold after the end of the 2024 financial year are presented in the financial statements release as discontinued operations. Correspondingly, the income statement items of the discontinued operations are presented in the consolidated income statement for the financial year as part of the profit (loss) of the Group’s discontinued operations, separately from the income statement items of the Group’s continuing operations. The presentation of the income statement for the comparison period has been adjusted accordingly.

2) The adjusted EBITDA and operating profit do not take items affecting the comparability of the Group’s EBITDA and operating profit into account, such as significant non-recurring items of income and expenses and amortisation of the fair value of assets recognised on the balance sheet by means of acquisition calculations. The purpose of the adjusted EBITDA and operating profit is to improve the comparability of the Group’s EBITDA and operating profit between periods. The reconciliation of the adjusted EBITDA and operating profit is presented on page 20 of the financial statements bulletin. 

 

Aarne Simula, CEO:

 

“2024 was a historically weak year for the automotive sector. The number of first registrations of new cars fell far short of the levels of recent decades. Economic uncertainty and low consumer confidence strengthened the negative impacts. Despite the headwinds, we systematically continued to implement our growth strategy. During 2024, we completed 5 company and business acquisitions, including the largest corporate transaction in our history: the sale of Wetteri Power Oy to the Swedish company Persson Invest Ab. The transaction significantly strengthens Wetteri’s balance sheet and its ability to execute strategic acquisitions, and thus provides excellent support for the company's growth strategy. The strategic business arrangements carried out over the last year will strengthen our position in the automotive market, which is undergoing major changes, and will increase our market share in the overall automotive market.

The turbulence in the operating environment was reflected in our financial performance. Our adjusted EBITDA fell short of the previous year’s level and was EUR 20.7 million. The Group’s revenue increased by 16% from the previous year as a result of corporate transactions, amounting to EUR 514.5 million. The adjusted operating profit was EUR 5.1 million.  Of Wetteri’s business segments, the Passenger Cars segment’s net sales rose to EUR 327.8 million and adjusted operating profit turned negative and was EUR -5.6 million.  The used cars invoicing increased by 58%. The order backlog of new passenger cars at the end of the year was EUR 36.6 million. The Heavy Vehicles segment’s revenue increased by 23% year-on-year. Its adjusted operating profit decreased by 17% and was EUR 3 million. The adjusted operating profit of Maintenance Services settled to EUR 6.9 million an increase of 21 per cent compared to the previous year.

In 2024, we launched an efficiency programme to improve profitability and save costs. In 2025, we will continue efficiency improvement measures as part of our continuous business development. With these actions, we reduced our debt financing. The majority of Wetteri’s interest-bearing liabilities on its balance sheet are related to the consignment stock financing of used cars, the leasing financing of demonstration cars, and lease liabilities related to the premises and equipment rented by the company. Consignment stock financing is a risk-free form of financing for the dealer, in which the car under financing can be returned to the financing company if desired.

The automotive industry is undergoing a historical transformation, and operations will focus on a few big players. We see that now is the right time to invest in the growth of the passenger car business. We will continue to develop the Heavy Equipment business, for which we have excellent prerequisites thanks to the Wetteri Power transaction. We have a strong position in the used commercial truck trade. Commercial truck maintenance will continue with five brands.

According to the automotive forecasting group, the lowest point of the market has been reached. The growth outlook for the automotive sector promises a growth rate of 10%. In February 2025, customer orders for passenger cars were up 17 per cent cumulatively compared to the previous year. As a result of a slower decrease in the number of older cars, the average age of the passenger car fleet increased to 13.6 years. In the previous year, the average age of passenger cars was 13.2 years. The increase in the average age has been faster than in previous years, as the number of registrations of new cars has fallen significantly short of the long-term average. This creates positive pressure for the car trade to pick up. Cheaper electric car models will also be introduced, meaning that the average price of new cars will decrease, and this will lower the threshold for consumer customers to buy a new car.

In 2025, we will continue our efforts to realise the synergy benefits of acquisitions and improve profitability. We will also continue to expand our brand representation to new locations, thereby strengthening our position to negotiate other new brand representations at growing locations. An example of these is Automotive Hedin Kia and Mitsubishi business transaction in Lahti, announced in February, which brings our potential market share of Kia and Mitsubishi dealerships in Finland to about 20%. With these arrangements, we have built the conditions for future growth.

Our strategic goal is to achieve at least 15% share of the national market potential of each brand we represent. We are also continuing to explore new business and company transactions that support our growth strategy. Finally, I would like to thank Wetteri's personnel, customers and all partners for the past year and wish them success in 2025."

 

The Board of Director’s proposal for measures concerning the profit for the financial year

The distributable funds of Wetteri Plc, the parent company, are EUR 65.8 million, including the profit for the financial year (EUR -2.9 million). The Board of Directors proposes to the Annual General Meeting that no dividend be distributed from the result for the financial year, and that the result for the financial year be transferred to retained earnings.

Estimate of future developments in the industry and the company

The number of registrations of new passenger cars and vans is expected to increase by around 10% in 2025. Lower interest and inflation rates may increase the demand for new cars as consumer confidence grows. The ageing car fleet also creates positive pressure for growth. The increased availability of new cars will contribute to the growth of demand.

During the current year, Wetteri has strengthened its brand representation nationwide, which is expected to support organic growth. The used car trade is expected to continue to grow. Maintenance operations are expected to continue at a strong level. More affordable new models of electric cars will also enter the market, as a result of which the average price of new cars will decrease, and this is expected to have a positive impact on demand from consumer customers.

The company estimates that in the medium term, the car market will return to the level of 100,000 first registrations per year. This is expected to have a significant impact on Wetteri’s net sales and profitability.

Annual General Meeting 2025

Wetteri Plc’s Annual General Meeting is scheduled to be held on 20 May 2025. The notice of the meeting will be published later.

Disclosure of financial information in 2025

Wetteri Plc will publish its financial reports in 2025 as follows:

• 13 March 2025: Financial statements bulletin for the 2024 financial year
• 24 April 2025: Annual report and financial statements for the 2024 financial year
• 19 May 2025: Interim report for January–March 2025
• 28 August 2025: Interim report for January–June 2025 
• 20 November 2025: Interim report for January–September 2025

 

Oulu 13 March 2025

Wetteri Plc 

Board of Directors

 

Further information:  

Aarne Simula, CEO, Wetteri Plc  

Tel. +358 400 689 613, [email protected]  

Panu Kauppinen, CFO, Wetteri Plc  

Tel. +358 44 236 3740, [email protected]  

 

Webcast on 13 March 2025 at 1 pm EET

Wetteri will hold a webcast for shareholders, analysts and the media on 13 March 2025. During the webcast, Wetteri Plc’s CEO, Aarne Simula, will present the result for January–December 2024, provide information about the progress of the company’s strategy and discuss the market situation in the automotive sector. The webcast can be followed at https://wetteri.events.inderes.com/q4-2024

 

Wetteri Plc – an entrepreneur-driven growth company in the automotive industry

Wetteri Plc is an entrepreneur-driven growth company in the automotive industry. In addition to the retail trade of passenger, commercial and heavy-duty vehicles, the company provides maintenance and damage repair services ranging from passenger cars to heavy-duty vehicles. The company has 40 offices in Finland, and its head office is located in Oulu. The company employs approximately 800 people, of whom approximately 76% work in maintenance and damage repair services. Wetteri is a promoter of the digitalisation of the automotive industry and an important player in the joint journey towards emission-free driving. Further information: www.sijoittajat.wetteri.