The online car retailer Cazoo has announced its financial results for the third quarter of 2023, showing a significant improvement in its unit economics and cash position.
The company said that it achieved a new record retail gross profit per unit (GPU) of £1,470 in Q3, up 14% from the previous quarter and 201% from the same period last year. The company attributed the increase to higher ancillary product sales, better inventory management, and lower logistics costs.
Cazoo also reported a strong cash position of £151 million at the end of September, plus approximately £35 million of self-financed inventory. The company said that it reduced its fixed and variable costs in line with its expectations, leading to lower cash utilisation.
The company sold 9,525 retail vehicles in Q3 ‘despite the challenging economic environment with increased interest rates and higher costs of living’. The company expects to sell around 8,500 units in Q4 and finish the year with between 40,000 and 42,000 units.
Cazoo said that it is on track to reach profitability by 2024 as it continues to expand its operations in the UK and Europe.
