Excluding the impact of Estonia, Longo achieved a 9% year-over-year increase in the number of vehicles sold during Q2 2025, leading to 7.3% increase during H1 2025. In total, 1917 vehicles were sold during the reporting period, representing an overall decrease of (4.5)% compared to H1 2024, when including the effect of the Estonian market.
In the first half of 2025, Longo Group generated total revenue of EUR 21.3 million, representing a (5.9)% decline compared to the same period in 2024. This downturn was primarily driven by a near standstill in the beginning of the year in the Estonian used car market following the introduction of the new Motor Vehicle Tax Act on January 1, 2025. The legislation introduced both an annual motor vehicle tax and a one-time registration fee, resulting in significantly higher ownership costs. Consequently, consumer demand for both new and used vehicles had temporarily weakened. Since April sales volumes of Estonian entity has been stabilizing, reaching almost 80% of prior period volumes in August.
Despite the revenue decline, the Group’s gross profit margin for the first quarter increased by 2.0 pts year-over-year, reaching 17.2%, resulting in total gross profit of EUR 2.7 million. This improvement was mainly attributable to higher commissions from extended warranty sales, increase in income from value‑added services and the reversal of a net realizable value (NRV) provision amounting to EUR 150 thousand.
Looking ahead, management remains firmly focused on restoring profitability through further gross margin improvements, especially by expanding value‑added services and optimizing vehicle preparation workflows, as well as maintaining lower headcount to service the needed volumes. Continued stabilization in Estonia provides a platform for modest volume growth, while disciplined cost control, reduced headcount and enhanced monetization per car sold should support performance improvement in H2 2025.
Longo Group AS unaudited report for period ended 30 June 2025 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, it has expanded its operations also to Poland. Established in 2018, Longo employs over 130 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 Latvia, 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.