Throughout 2024, Longo’s management team maintained a strong focus on enhancing the Group’s gross profitability. These efforts have delivered positive results, with the gross profit margin increasing by 0.6 percentage points compared to the same period in the previous year, reaching 14.9%. Total Gross profit reached EUR 6.6 million that is EUR (0.2) million less than prior- driven by lower sales volume.
In 2024, Longo generated total revenue of EUR 44.4 million, reflecting a 6.8% decline compared to 2023. This decrease was primarily due to a reduction in the average sales price per vehicle, leading to an 8% drop in revenue from vehicle sales. However, the total number of cars sold remained relatively stable, with 3,942 units sold in 2024 compared to 3,971 in 2023. The contraction of the used car market in the Baltics further impacted overall sales performance.
The decline in vehicle sales revenue was partially offset by a 24.7% increase in income from lease and insurance product sales. This growth was fueled by the successful introduction of extended warranty options in Lithuania, Latvia, and Poland in 2023, along with a continued emphasis on leasing and financing solutions.
To counter these market challenges and drive future growth, Longo has strategically focused on market expansion and product diversification. The company has strengthened its presence in Poland, increasing its share of total vehicle sales from 1.9% in 2023 to 5.4% in 2024, while also opening new branches across the Baltics and broadening its vehicle assortment.
A major milestone was achieved in July 2024 with the acquisition of an industrial building complex in Panevėžys. This facility has been fully customized to meet the specific needs of the car diagnostics and preparation process and is now fully operational. The new service center enhances the Group’s capacity for vehicle sourcing, enabling higher sales volumes. The acquisition was financed through a loan from Citadele banka JSC.
The Group has ambitious plans for year 2025 and beyond - to strengthen profitability while increasing its revenue. It is to be achieved by expanding its physical sales network, further diversifying car assortment and boosting its brand awareness.
Longo Group AS unaudited report for period ended 31 December 2024 is attached to the announcement and is also published on NASDAQ Riga and Longo’s web page https://www.longo.group/investorresources
About AS Longo Group
AS Longo Group is the largest used car retailer in the Baltic region, providing the most extensive selection of vehicles. Established in 2018, Longo employs over 140 professionals and reached a revenue of 44.4 million euros in 2024. The headquarters are in Latvia, from which AS Longo Group manages 9 subsidiaries across Lithuania, Estonia, Poland, the Netherlands, Belgium, and Germany. Since the inception, Longo mission has been to establish a new standard of quality within the used car retail sector in the Baltic region, ensuring a transparent, reliable, and outstanding car-buying experience for customers, both online and in-person.
AS Longo Group growth has been recognized by the Financial Times and included in the FT 1000 list of Europe’s fastest-growing companies for 2024, ranking 1st among Latvian companies and 10th in the European automotive sector.