Despite cost cutting, job losses, and closures, Cazoo managed to increase its gross profits by 367% to £14m, although turnover dropped by 11% to £247m in Q1. The gross profit per unit surged to £980, a 690% YoY increase, while the number of retail units sold was up by 4% to 13,314. The firm is aiming to sell between 50,000-60,000 units in 2021, of which 40,000-50,000 will be retail, with projected retail gross profit per unit of £1200. CEO Paul Whitehead said that the company’s restructuring efforts were “starting to bear fruit”, adding that the firm is focused on improving its unit economics, optimising its fixed cost base, and securing cash runway. Cazoo has also targeted its car sourcing and made better selections using its proprietary data on desirability, leading to improved margins. During the quarter, 52.5% of buyers arranged their finance online, up from 47.4% in Q1 2022, while the firm saw reconditioning costs improve as well.
