One of the largest dealers of used cars in the Baltics”Longo Group” increased its turnover by 84% in the first half of this year, reaching 24 million euros.
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On the other hand, the gross profit for six months was 2.5 million euros. “Despite global challenges – the shortage of used cars caused by Covid-19, the rise in prices, as well as the war in Ukraine, which affected consumer demand, we continue our rapid development. Such results were achieved by expanding the range of used cars offered, optimizing the group’s internal processes and issuing bonds, included in “Nasdaq Riga“In the list of Baltic “First North” bonds,” comments Edgars Cērps, founder and chairman of the board of “Longo Group”.
The group’s profit in the first half of 2022 exceeded the profit for the whole year 2021. On the other hand, EBITDA during the first half of the year is 0.9 million euros – compared to 2021, when EBITDA was 0.8 million euros during the entire 12 months, this is a very rapid increase. Additionally, the EBITDA margin in Q2 was 5%.
The company’s growth was positively influenced by the issue of bonds, which allowed to attract additional funds for development and promoted recognition. This will make it possible to continue expansion in new markets in the near future, significantly expanding the car assortment and integrating new services, Cērps offers.
In 2022, the importance of digital channels in the retail sale of used cars remains high, taking into account that in 2021, buyers visited used car sales points less in person, switching more to online shopping. “Longo Group” was one of the first to introduce a fully online reservation system in the Baltics. In the second half of this year, the group plans to offer customers the opportunity to complete the entire car purchase process online.
In the coming years, the goal of “Longo Group” is to reach 100 million euros in annual turnover. The company plans to enter a new market – Poland. Sales there are expected to start in the second half of 2022.
AS “Longo Group” has been operating since 2018 and provides a full cycle of used car procurement and sales processes. Car purchases are made through branches in the Netherlands, Belgium and Germany, while vehicle inspection, quality assurance, face-to-face or online sales and after-sales warranty take place in the Baltics. More than 10,000 units have been sold since the start of operations. car.
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