Longo Group Reports First Quarter of Growth Amidst Challenging Market Conditions
TALLINN,Estonia – November 8,2025 – AS Longo Group today announced positive financial results for the third quarter of 2025,marking the first quarter of growth after a challenging start to the year. The companyS total gross profit margin improved to 17%, a 0.9 percentage point increase, and net profit reached €163,000 – 12% higher than the previous quarter.
The positive results helped mitigate the impact of a revenue drop, bringing the decline for the first nine months of 2025 to 1.6% compared to the same period in 2024, with total revenues reaching €34.5 million.
The initial downturn was largely attributed to the impact of new vehicle tax legislation introduced in Estonia on January 1, 2025.The legislation, which included both an annual recalculation of vehicle tax and a one-time registration fee, significantly increased the cost of purchasing both new and used vehicles, temporarily suppressing demand. However, the company reports sales began to stabilize in April, reaching 70-80% of previous levels by the third quarter.
Contributing to the improved gross profit margin were increased commissions from extended warranty sales, growth in value-added service revenues, and a €150,000 reversal of a net realizable value (NRV) provision. Total gross profit for the nine-month period amounted to €5.9 million.
Looking forward, Longo Group management stated they will continue to prioritize profitability improvements, focusing on expanding value-added services, optimizing car planning processes, and maintaining efficient staffing levels. The company anticipates moderate volume growth based on the stabilization of the Estonian market, coupled with disciplined cost control and increased revenue generation per vehicle sold, will drive further improvements in 2026.
