AI Interim report Q3 2020 1
INTERIM REPORT 2020 | I.A. HEDIN BIL AB | JULY 1S
T - SEPTEMBER 30TH CEO comment Hedin Bil delivers a strong third quarter with focus on profitability and liquidity - Increased profitability in both car sales and the after market business - Increased customer deliveries compared to the second quarter 2020 - Strong cash flow and liquidity Results for the third quarter Operating profit during the third quarter was 240 MSEK, which was an improvement of 131 percent compared to last year’s third quarter. Net sales in comparable units increased by 21 percent compared to the same period last year. The operations in Sweden and Norway improved both operating profit and operating margin. The Belgian operations returned to show a profit after second quarter’s loss. New car sales increased by 2 percent in comparable units and the gross margin improved also. Sales of used cars increased by 18 percent and gross margins recovered after the second quarter Covid impact. In total, car sales contributed with increased profits and increased margins compared to the third quarter last year. The after market business also performed stronger than last year with higher profits and margins. Market development The market development was strong during the third quarter, showing a healthy demand while there were delays in the supply of vehicles due to the close downs in production in the second quarter. New passenger car registrations in Sweden decreased by 4 percent compared to the third quarter of 2019. Corresponding figures for the Norwegian market was an increase of 12 percent and a decrease of 9 percent in Belgium. The market for used cars, as well as the after market, has continued to develop favourably. Savings program due to Covid-19 The savings program that was launched in the second quarter rapidly adjusted the operations to the changed demand in the market. Since then, the market has gradually recovered and we are following the development closely to make sure that we have the right resources in the right place. There has been limited government financial support received. In all our markets we are continuing to follow the guidelines introduced by local governments to limit the spread of the virus and to protect our personnel and our customers. There is a lot of effort behind the strong result delivered under challenging circumstances, for which I am both proud and grateful. We continue to focus on both profits and liquidity to be able to keep our long-term focus. Anders Hedin 7