Cazoo losses hit -£243m in H1, Gross margin falls to 0.5%
Cazoo losses in the first half of 2022 more than doubled to -£243m year on year while turnover accelerated 153% to £628m.
The volumes of vehicles sold rose 113% to 43,668 units. UK retail GPU was £226 compared to £315 last time.
Gross profit for the period was £3m compared to £11m in the first half of 2021. Gross margin fell to 0.5% compared to 4.6% last time.
Cazoo pointed to improvements in the second quarter. UK Retail GPU in Q2 at £309, up by £185 in comparison to Q1 2022.
It added that it had made ‘considerable improvement in vehicle reconditioning and its ‘realignment plan’ was “successfully implemented” and the review of the EU business was underway.
It said it had a strong balance sheet with £400m of cash and £175m of self-financed inventory
Alex Chesterman OBE, Founder & CEO of Cazoo, said he was proud of what the group had achieved so far in 2022.
“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.
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.”
|Six months ended
|Three months ended
|UK Retail GPU (£)2||226||315||(89)||309||467||(158)|
|Gross Profit (£m)||3||11||(8)||2||8||(6)|
|Gross Margin (%)||0.5%||4.6%||(4.1)%pts||0.5%||5.6%||(5.1)%pts|
|Loss for the period (£m)||(243)||(102)||(141)|
|Adj. EBITDA (£m)3,4||(175)||(69)||(106)|
|Adj. EBITDA Margin (%)5||(27.9%)||(27.9%)||+0.0%pts|