Operator
Welcome to the Aramis Group Q3 2026 revenues presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. I will now hand over to the speakers to begin today's call.
Good morning, everyone, and welcome. Thank you for joining us today for the presentation of Aramis Group's third quarter activity for fiscal year 2026. I'm Jules Naveau, Head of Investor Relations at Aramis Group, joining me today to comment on these results are Guillaume Paoli, co-founder and co-CEO of the Group, and Fabien Gérald, Group CFO. Before I hand over to Guillaume, a few reminders. This call is being recorded and is accessible both by phone and internet. A replay will be made available on our website at aramis.group, along with a slide deck which is also available for download. Today's presentation contains forward-looking statements and actual results may differ materially from the projections made on the scope. The risk factors that could affect those statements are described in our 2025 Universal Registration Document, filled with EAMF. Today's presentation will be followed by a Q&A session. Finally, let me remind you that ARAMIS Group operates on a non-calendar fiscal year, closing at the end of September. As a result, the Q3 FY26 results we are presenting today cover the period from April to June 2026. With that, let me hand over to Guillaume to work you through the key business and market highlights for the period. Guillaume, over to you.
Thank you, Jules. Good morning, everyone, and thank you for joining us today. Before we dive into the details, let me walk you through the three key takeaways from this morning's presentation. First, well, this quarter played out as anticipated. Q3 revenues came in at 559 million, with B2C volumes of almost 29,000, which down 2.7%. But there are two very different dynamics at hand. Refurbished vehicles volumes returned to growth, up almost 3% in a used car market that was decreasing over the quarter. We have three geographies, France, Spain, and Italy, that delivered double-digit growth and refurbished volumes. But on the other side, as anticipated, pre-registered volumes declined by 20%, driven by the structural impact of the Middle East conflict on that segment. And through all of that, our model and teams have delivered, with customer satisfaction among the very, very best of our industry with an NPS of 71. Second, we continue to execute our strategy with discipline. The action we have engaged in our transition geographies are beginning to bear their fruit, with volume stabilizing in the UK and Austria. We opened a few customer centers in these geographies to prepare future growth. And across the group, C2B sourcing continued to accelerate sharply, up 27% year on year. And third, we are reconfirming our FY26 target that we updated in May, at least 110,000 B2C vehicles sold, and a logistic EBDA of between 35 and 45 million euros. Our median targets are also confirmed. With that, let's spend a minute on the market environment. Moving on slide four, well, the used car market for vehicles under eight years declined by approximately 5% across our six geographies. A slight deterioration versus the first half of the year. I remind you that at Aramis, we look at the market of vehicles sold below eight years, which is not necessarily the case for other listed peers. Despite this, our group market share increased at 1.57%, continuing a consistent year-on-year upward trend. At country level, France continued to gain market share despite its exposure to the pre-registered segment contraction. Spain delivered double-digit growth and Italy continued its ramp-up. In the UK and Austria, the decrease is deliberate as we removed unprofitable volumes. Belgium is another story, more impacted, reflecting both the pre-registered contraction and team challenges that the group is addressing as we speak. We confirm our confidence in our ability to grow market share profitably over the midterm, even in a challenging environment. Moving on slide five, these are elements that you know, the foundations of our model. Our value proposition rests on three pillars. First, full vertical integration from sourcing all the way to home delivery. Second, a clear and disciplined operating system that is optimized and shared between the geographies. And third, a strong performance engine of culture at company team and individual levels. This model is what allows us to gain market share and to do so while maintaining best-in-class customer satisfaction. Moving on slide six, as I flagged during my opening remarks, our strategy is built on two main pillars. First, convergence that we are currently accelerating. It's about leveraging the full power of our European platform, harmonizing our operating model across geographies, sharing know-how, and capturing the group effect at scale. Raise the bar, title of the book we wrote a few years ago with Nicola. It's about continuously improving across all dimensions, our workflow, our tools, our teams, with technology and data as key, key enablers. We'll look at two concrete examples of each of those pillars from the quarter. So now moving on slide number seven. Let's take a moment on C2B, customer-to-business, which is one of the most important strategic levers in our model and one that is accelerating meaningfully. It is a channel through which we source vehicles directly from private individuals. It is structurally advantageous for four reasons. One, it broadens our sourcing pool. Two, it diversifies our offer with older, cheaper vehicles. Three, it builds lasting customer value by turning sellers into future buyers. And four, it gives us lower exposure to macroeconomic volatility. So the volumes grew by 27%, and now one in three cars delivered by Aramis Group to private customers is sourced via C2B. And let me precise, this is a structural shift, not a one-off. Convergence efforts are delivering tangible results. Our most experienced operators are sharing their know-how, and also So we are roll-outing our new system Polaris, which has a proprietary C2B sourcing platform, and these combined efforts are driving real momentum. Now, on slide number eight, to illustrate one element of the Razor Bar strategy with the increase of our customer center network. Well, customer centers could seem anachronic in an AI environment, but actually they serve four purposes. One, they bring us physically closer to our customer, giving reassurance, making a marketing statement, helping to drive brand awareness. Two, they support C2B sourcing as trade-in and buy-back service point. And three, they reduce our customer acquisition over time. There are also very important logistic points to deliver the car to the end customer and all this with very limited capital requirements costing just a few hundred Ks depending on the format. Our network now counts 79 customer centers of six since FY25 with opening across our geographies including four in France. Among these we can highlight the opening in the UK and Austria. In Stockport our first asset light center in the UK and Salzburg, a new center in Austria's fourth largest city. We are deliberately building the foundation for future growth in these geographies. Across the group, this network is an important driver of both C2B acceleration and customer proximity. I will now hand it over to Fabien, our Chief Financial Officer, who will walk you through the numbers of the third quarter. Fabien, it's over to you.
Thank you, Guillaume. Let's start with the revenues by segment, page 10. Total revenues reached €559 million in Q3, down 5% versus last year, in line with our expectations. B2C refurbished volumes grew by 3% during Q3, which marks a solid recovery versus previous quarters in a context where the market is still down by 5%, and the transitions are still ongoing in some key geographies. It was driven by three factors. First, double-digit refurbished volume growth in France, Italy, and Spain, that I will comment on the next page. Second, a sharp acceleration in C2B sourcing, up 27% year-on-year, and now representing more than one-third of our B2C deliveries. And third, the stabilization of our volumes versus previous quarters in our geographies in transition, UK and Austria. We are now focused on preparing future growth through the extension of our physical network in both countries. B2C pre-registered revenues decreased by 19% versus last year. This decrease was announced and explained during our H1 presentation. In a nutshell, the sudden rise in oil prices and the resulting acceleration of the switch to EV has affected our sourcing of pre-registered vehicles, hence the observed conjunctural decrease. B2B revenues declined by 7%, with volumes up 1% and a negative mix effect of 7.5%. As we redirect an increasing share of C2B-sourced vehicles toward B2C, the vehicles remaining in B2B are mechanically older and higher mileage, driving the average unit price lower. Services revenues were down by 6%, mainly impacted by the B2C revenues, which are down by 5%. Financing penetration was slightly down at 41% as a result of increasing interest rates. Let's take a closer look at the revenues by country, page 11, where you can see diverse dynamics across our geographies. France delivers revenues of 272 million euros in Q3, up 3% year-on-year, in a market down by 10%. A solid performance, driven by the strength of our refurbished business, which has grown double-digit during the quarter and more than offset the pre-registered slowdown. We continue to invest in our point of sales, in our systems, and to launch new services in order to further improve our model. Once again, this performance demonstrates the resilience of our activity in France in a particularly adverse market environment. Belgium was our most impacted geography this quarter, with revenues down 23% year-on-year. This mainly results from two factors. First, the contraction of the pre-registered segment, as explained earlier. Second, some local purchasing challenges that the group is now actively addressing through increased group support. Spain revenues were up 16% in Q3. This growth was driven, among other things, by the acceleration of the C2B sourcing, which has more than doubled year-on-year in Spain, bringing a higher diversity of cars into our inventory, and therefore supporting our sales. In the UK, revenues were down 24%, with volumes down 14% versus last year. As already commented, we are deliberately reducing the loss-making volumes and setting the basis for future profitable growth. Volumes are now stabilizing versus previous quarters, and the opening of our first asset-light customer center in Stockport signals our commitment to building future growth in this market. In Austria, revenues were down 14%. Volumes are now slightly progressing versus previous quarters, and the operational transformation is gaining traction, with C2B up 62% between Q1 and Q3, reflecting a meaningful diversification of our sourcing channels. Our new customer center in Salzbo reinforces our local presence. Italy continued to its ramp up with volumes up 54% year-on-year in line with our expectations. With that, I hand it over to Guillaume for the guidance. Thank you, Fabien.
Let's move on now on slide 16. As I said, we are confirming our full year FY26 guidance as updated on May 12th following the turmoil of geopolitical situation with at least 110 000 b2c deco sold and an adjusted EBDA of between 35 and 45 million our mid-term targets are still confirmed high single digit organic CAGR and b2c volumes and an adjusted EBDA margin of approximately 5% of revenues, which is the level we reached, for example, last year in France. Moving on the last slide, slide 14, to wrap it up, four takeaways. First, the quarter played out as expected, with the preregistered decline weighing in on our results, partially offset by refurbished growth in France, Spain, and Italy. Second, our transition geographies are showing comforting signs of stabilization. Third, we continue to execute our strategy with discipline. As an illustration, C2B is strongly increasing, particularly across the geographies that did not really use this channel up to now. And fourth, FY26 objectives and medium-term targets are confirmed. So I want to thank our teams for their continued commitments and, of course, our customers for their trust the team is fully confident focused and committed to delivering long-term profitable and cash generated growth we thank you for your attention and we are now ready to take your questions if you wish to ask a question please dial pound key 5 on your telephone keypad if you wish to withdraw your question please dial pound key 6. the next question comes from Alexander Reverdy from Kepler-Chouvreau.
Operator
Please go ahead.
Yes, good morning, Guillaume Fabien-Jules. I have three quick questions, please. The first one is on the guidance. We've seen France doing quite well. We're not positive for the mix. And I think the Q4 implied volumes do not look demanding. So I appreciate Belgium remains challenging, but is it fair to assume that you could potentially reach the high end of the EBITDA margin range? That's the first question. second one on the c2b sourcing could you please quantify the impact if any of the higher c2b mix on your gpu and working capital and maybe a last question on on uk and austria maybe could you please throw in an update on the transitions in those countries and when we can expect a stabilization or even a return to growth thank you thank you excellent i'll take the first one Fabien, the second one, and the third one.
I can take it as well. And I'll compliment. OK, so it's a fair question, Alexandre. Well, I confirm this Q3 is encouraging in many regards. C2B development is going well. There is increasing volume in refurb. But the environment remains highly uncertain, as everyone can see. I mean, it's like the U.S. policy is difficult to read. It's a bit of a roller coaster. The price of oil has an impact on the mix. And so we remain cautious and we still have work to do, particularly in Belgium and Austria, everywhere we have work to do. But let's say that the situation that we have both in the business and the teams in Belgium and Austria is not satisfactory. And we are currently reinforcing the team there. And so we are cautious on these geographies for now. So this is why we are not giving any signals because we are cautious for this reason. And of course, we always hope for the best, but we still remain cautious in the current environment.
So thank you, Alexandre, for your question on the C2B sourcing. So first of all, yes, it's an important sourcing for us because it brings diversity. And this is what our customers are looking for. There is no change in terms of GPU profile for the C2B sourcing and no structural reason for the C2B sourcing to be lower or higher in terms of GPU. In terms of working capital, once again, the target is the same as the rest of the business. It turns out that very often what we see, considering the diversity of the offer that the C2B sourcing is offering, those cars are turning a little bit faster. Once again, it's not extremely meaningful and we are not betting on that to reduce our working capital. But the profile all in all of the C2B, especially when we have a very low level of C2B, is extremely favorable for us. And that's why we are developing this sourcing channel. Regarding UK and Austria, so we are clearly making progress on these two geographies. I think that the Q3 volumes are showing that clearly we are now stabilizing, even slightly up in Austria compared to a previous quarter. Now, it doesn't mean that the transitions are fully over. There is still some work to do, as always, and there will still be some work to do probably in a few years as well. But we are on a good trend. It's promising. and now we are in a new phase where we prepare the future growth. We have started to open a new point of sale in the UK in Stockport. It's an asset-light point of sale. And this is something that we want to continue. You know that we have a very small market share today in the UK. We are at 0.7%. So there is margin for improvement and it goes through clearly the development of our point of sales there. So I hope it answers your two questions, Alexander.
Yes, very clear. Thank you very much.
Operator
The next question comes from Doyin Sola Ojo from Citi. Please go ahead.
You're taking my question. I just wanted to talk about the exit rate. Can you give us any color on what you're seeing across the markets in refurb and pre-reg in July so far? Just kind of going back to that question on guidance, that based on where consensus is at the moment, it kind of implies a quarter-on-quarter decline versus where consensus – the reiteration of guidance suggests a quarter-on-quarter decline versus where consensus currently sits. So it would be good to get a sense of how July is looking so far. Thanks.
Sorry, what do you mean by exit rate? Sorry, I'm not sure to understand the question.
Um, just how are units looking in July so far?
Okay, so I think, if I understand well your question, the insula, you are asking if there is a specific trend in July?
Um, no, just what you're seeing in July so far, and then maybe for your 4Q, which is July to September, if there's anything specific to be aware of in terms of seasonality which might be why we might see softer units quarter on quarter in your 4q so no we there is nothing specific in july things are going uh as expected and uh and consistent with the the guidance we we have provided as we said we remain cautious because There have been a lot of events, but everything is consistent, and the sales in July are consistent with what we have said.
Operator
The next question comes from Christophe Emil-André Cherblanc from Bernstein. Please go ahead.
Yes, good morning. I have two questions. The first one was on the pre-reg market. you're mentioning in the release the decline is temporary so does it mean you you expect to eat bottom in q4 and if we dig a bit further on on that market what's happening on the ic cars you know because i would assume that inventories are building building up so maybe prices are going to correct is that something you are expecting and at the same time on the ev part of the market will there be a pre-reg market in the in the EV segment is there excess capacity in Europe that you can tap and does it mean that the pre-reg segment as a whole is going to be smaller over time than it was in the past that's the first generic question about the pre-reg segment and the second question is also on the medium term EV the share of EV car is going up so at some stage those cars will end up in the in the used car market is there any reason to assume that the the way you're doing business in term of gpu refurbishing car etc inventory turn around would be very different from what you have today thank you yeah thanks for these questions um so regarding pre-registered it's always good to to take a step back and look why is this market uh existing pre-registered car are physically new car and administratively used cars because they
have been registered because there is always except from 2020 to 2023 at least the last 30 years there is always a gap between what the OEMs produce and what the market is able to absorb both the B2C market and the B2B market, meaning leasing, rental cars, etc. So on the new car market. So it has always been the case that there is a market. It's difficult to assess exactly between 600,000 and 1 million cars, depending on the years. It's impossible to assess precisely, but this is an order of magnitude. so the thing is that today the zero kilometer the pre-registered market exists the problem we have in our main geography which is france is that we do not benefit from bonus because these cars are under brackets used okay so we do sell pre-registered evs from chinese brands that do little from from the other brands so the different we say it's temporary because this market has always existed it's like how to say in English soup up the security market and your question it depends on will the French state and be able to finance these huge bonuses for a very long time we know we have a very healthy budgetary situation here in france so uh if uh the french state needs to make make some savings maybe they are going to scrap off a little bit of that which will make it easier for us to sell these evs ice cars are still there are still being sold there will remain a share of of cars and one thing we have learned since 25 years is that there is always a customer for a car, it's just a question of price so we believe this will get balanced in the next months but on this market there will always be like a cyclical increase and decrease we believe that the massive arrival of Chinese brands will increase competition and be relatively a good thing for this market. But anyway, this market, we have learned to live with it for years. It will represent an always smaller part of our business. Right now, I think it's around 20%. When we project in the future, long-term, it's going to be maybe 15%, around 15%, so we'll be less impacted. So, sorry, very long answer, but long story short, yes, it's temporary. It's going to be balanced. Lots of things at play in this market, and anyway, it's going to be diluted. Your second question on EVs is a question we have a lot. um we don't we are actually monitoring all the main kpi of the business meaning gpu turn uh defect rate you know the return rate and all of these are consistent with uh ice cars i think right now there is maybe one or two days of uh of term or less they turn one or two days slower, that was last year, this year they turned even a little bit faster, so there is no main, there is no major impact on our business, there is no impact on our business. What we believe is that we will, the EVs will be sold more B2C than that was the case for ICE because 40% of the value of the car is in the battery. And if, as a private customer, you buy the electric vehicles from your neighbor, you are taking a huge risk because if there is a risk on the battery, your car is worthless and there is basically no way you can get your money back. And finally, we are working, it's a bit too soon to give you some numbers, but we are working internally to go further on these EV cars and trying to learn how to refurb older EV cars with batteries that are not under warranty because we want to be a step ahead on this business. And maybe it's an opportunity in a few months to give you some color on this. So long story short, no impact on our business. More opportunities. Okay, thank you very much. there are no more questions on the phone at this time so i hand the conference back to the speakers for written questions um there is a question from edward paul from wilson gestion could you come back on your dependence towards telantis and the percentage of the cars sold this year that come from them so we have we work well with our partners from stentis but there is no dependence we are not integrated at all. We are physically independent. There is nobody from Stellantis in our offices. There are three streams of work with them. One, we buy cars from them, or they sell cars to us because they need to sell a lot of cars. As you know, a lot of their business is selling new cars, B2B, to fleets, to leasers, to short-term rental companies, and they have buybacks, commitments, and these cars they need to sell. So they sell them in their own franchise network and also to us and a lot of other independent merchants, competitors of us. So right now, the share of our B2C sales is 7%. 7% or 9% from now?
And in any case, it's less than 10%.
It's between 7% and 9% depending on the quarters. So it is an important stream, but it is not I mean game-changing for us and the cars we buy from them is we could buy them elsewhere and maybe with slightly less conditions but anyway they are very happy to sell the cars to us second stream is we buy spare parts from them we have very slight advantages but it's I don't have the exact figure but in France it's around 30 to 40 percent of the spare parts we buy or come from them and in other geographies it's less and this is not at all a strategic thing and finally we do have lines of credit with them maybe i let fabian answer that third part well yes we are disclosing
that in our universal registration documents we have significant credit lines with them with probably some some quite favorable rates of course but right now you see that our leverage is very low. We have a low net financial debt, and half of it comes from Stellantis, and the other half comes from the local credit lines that we have in every single country. So I think that's it for Stellantis. So to answer the question, he has no dependence towards Stellantis today.
As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. so at this stage i don't see any other question written or uh last chance to have a question i know there are a lot of publications and thank you for spending the time uh ingress out so thank you very much uh for your time have a great summer and speak to you in november at the latest uh for the full year results thank you very much thank you
