Excluding the impact of Estonia, Longo achieved a 5.3% year-over-year increase in the number of vehicles sold during Q1 2025. In total, 855 vehicles were sold during the reporting period, representing an overall decrease of 8.5% compared to Q1 2024, when including the effect of the Estonian market.
In the first quarter of 2025, Longo Group generated total revenue of EUR 9.2 million, representing a 12.4% decline compared to the same period in 2024. This downturn was primarily driven by a near standstill 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 has temporarily weakened. Since April sales volumes of Estonian entity has been stabilizing, reaching almost 70% of prior period volumes in May.
Despite the revenue decline, the Group’s gross profit margin for the first quarter increased by 0.7 pts year-over-year, reaching 14.5%, resulting in total gross profit of EUR 1.3 million. This improvement was mainly attributable to higher commissions from extended warranty sales and other factors.
Longo remains committed to its long-term strategic growth plan, focusing on its core operational pillars: procurement, sales, vehicle preparation processes, and effective inventory management. Notable progress was made at the end of 2024 and beginning of 2025 in several strategic pillars of the Group- Inventory was increased by 12% and diversified, as well as 5 new sales locations were opened to widen geographical reach, positioning the Group for expanded sales in year 2025.
Longo Group AS unaudited report for period ended 31 March 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 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 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.