Anders Hedin Invest - Interim Report Q3 2018 1
I.A. HEDIN BIL AB FINANCIAL SUMMARY JANUARY – SEP
TEMBER, 2018 Net sales increased by 81 percent to 15 671 MSEK (8 648 MSEK). Organic growth amounted to 12 percent, which is higher than the total market growth. Sales has been affected by changes in car and road taxes, primarily with the introduction of the new road tax system Bonus Malus in Sweden on July 1, and the introduction of a new passenger car emission measurement system on a EU basis, named WLTP (Worldwide Harmonized Light Vehicle Test Procedure), on September 1. Sales during the third quarter increased by 69 percent, while organic growth was negative by 1 percent, which we estimate is better than the market as a whole. Operating profit amounted to 172 MSEK (101 MSEK) at a slightly lower margin of 1.1 percent (1.2 percent). The margins in vehicle sales are still under pressure with an average of 0.7 percent for the first nine months (0.8 percent). Operating margin for after sales decreased to 2.8 percent (3.0 percent), driven by higher depreciation of fixed assets due to investments in aftermarket service. Third quarter operating profit decreased to 21 MSEK (29 MSEK), mainly due to start up and integration costs. The Operating Margin of business under the Hedin brand amounted to 1.1 percent (1.2 percent), while the operating margin in Bavaria, acquired in October 2017, amounted to 1.4 percent for the first nine months of 2018. The business in Belgium, acquired in April this year, has been affected by lower sales due to temporary conditions, and is now on break even. Financial cost has increased primarily due to acquisition financing and working capital financing of newly added businesses. Cash flow from operations amounted to 477 MSEK (34 MSEK) during the third quarter, driven by a decrease in customer receivables. Acquisitions of subsidiaries affected investments with 189 MSEK, the majority of which is related to the acquisition of five Mercedes-Benz dealerships around Antwerp in Belgium. Sold vehicles Third quarter 2018 New cars New light commercial vehicles New heavy trucks Used cars Used light commercial vehicles Used heavy trucks Total 8 747 1 343 100 7 352 636 29 18 207 2017 6 475 1 606 43 4 910 452 36 13 522 1 January - 30 September 2018 29 227 5 377 303 21 750 1828 204 58 689 2017 19 715 4 645 191 13 966 1361 102 39 980 1 JULY - 30 SEPTEMBER I.A. HEDIN BIL AB INTERIM REPORT 2018 11