Home Business NewsBusinessAutomotive News Cazoo reports record revenues of £333m in Q2, up 145% YoY driven by substantial UK retail sales growth

Cazoo reports record revenues of £333m in Q2, up 145% YoY driven by substantial UK retail sales growth

by LLB Finance Reporter
2nd Aug 22 12:23 pm

Cazoo Group who are Europe’s leading online car retailer, which makes buying and selling a car as simple as ordering any other product online, has announced its financial results for the three months and six months ended June 30, 2022.

Alex Chesterman OBE, Founder & CEO of Cazoo said, “I am very proud of what we have accomplished so far in 2022 as we continue to transform the car buying and selling experience for consumers. We achieved record revenues and retail unit sales in Q2 and grew our market share significantly, despite the tough macroeconomic backdrop, as the consumer shift towards online car buying continues to accelerate.

Despite having launched only two and half years ago, we have now sold over 80,000 retail units entirely online, including over 30,000 in the first half of this year and we achieved record revenues in H1 of £628m, up 153% YoY, as consumers continue to embrace the selection, value, transparency and convenience of our proposition.

Whilst our growth remains very robust, we are laser-focused on maintaining our strong balance sheet, preserving cash and materially reducing the need for further funding as we drive towards profitability. We are encouraged by the positive trajectory of our UK retail GPU in Q2, which was up by 150% vs Q1 2022 and we are well positioned to continue this positive momentum in the second half of the year and beyond.

I am particularly pleased that despite the weak economic environment affecting growth in other retail businesses and sectors, we have maintained our strong momentum into Q3 with record retail unit sales and revenues in July, whilst also growing our UK website inventory to record levels, highlighting the progress we have made with our reconditioning capabilities.

Our balance sheet remains strong with over £575m of cash and self-financed inventory at the end of June. However, given our focus on cash preservation and achieving profitability, we have initiated a full strategic review of our business in mainland Europe, with a view to further reducing cash burn and aiming to ensure that we have an executable plan which materially reduces any further external funding requirement.”

Stephen Morana, Chief Financial Officer of Cazoo, added, “Our Q2 performance gives me confidence in our plan to position Cazoo for profitable growth, with a relentless focus on improving unit economics, reducing costs and maximising liquidity. We continued to see significant revenue growth of 145% YoY in Q2 to £333m, driven by a 124% increase in vehicles sold and solid uptake of our finance and ancillary products. Our revenues over the first half of the year grew more than 150% YoY to £628m, as we sold a record 30,386 retail units in the period.

Whilst our Q1 UK retail GPU was impacted by investments made last year, we saw a marked improvement in Q2 of £309, compared to £124 in Q1 2022 and we expect further considerable progress in the second half of the year. At the same time, we have started our process to take costs out of our business and reduce our SG&A per unit, as we make progress towards reaching cash flow breakeven.”

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