I.A. Hedin Bil AB - Interim Report Q1 2019 1
INTERRIM REPORT 2019 | I.A. HEDIN BIL AB | JANUAR
Y 1st - MARCH 31st CEO Anders Hedin comments An impressive start of 2019 with strong growth and improved profitability. During the first quarter, we increased sales in all our segments while improving the margins. New car sales showed a positive development and we continued to increase our market shares. After market services experienced a similar development with improved sales and profit. The increase in profit is also a product of targeted saving programs and increased efficiency that is now coming into effect. As part of the improvements, I want to highlight a few accomplishments in particular: The used car concept Hedin Certified was launched late 2018, offering tested cars at fixed prices with a price guarantee. Since then, dealerships have gradually been transferred into the new concept and today all our Swedish Hedin Bil dealerships are Hedin Certified. This has had a positive impact on margins and the inventory turnover rate. The Swedish Bavaria business launched a savings program during 2018 targeted at decreasing overhead cost. This has a positive impact on the Q1 profits. Our Belgian business had a convincing start of 2019 compared to the Belgian market as a whole. We established ourselves in the market in 2018 through acquisitions, and we have had a high pace of change since then. With an increased market focus and improved co-ordination of the resources, there is a solid foundation for continued growth and profitability. I am pleased that we now have three strong home markets, where we offer well established products and services through excellent organizations. At the same time, we strive to become even better, with an extended range of packaged products for both the private and the corporate markets. We continue to invest in IT to improve how and when we meet our customers. We also invest in internal efficiency, where new technology facilitates simplified and automated processes. Last few years have been a journey of considerable expansion, and it is my conviction that benefits of scale will be of even more importance in the future. Anders Hedin 7