I.A Hedin Bil AB - Interim Report Q3 2019 1
INTERIM REPORT 2019 | I.A. HEDIN BIL AB | JULY 1S
T - SEPTEMBER 30TH Financial summary January – September 2019 Net sales increased in the third quarter by 8 percent to MSEK 5,262 (MSEK 4,858). Net sales excluding acquired businesses decreased by 1 percent. From the beginning of the year net sales increased by 5 percent, while net sales excluding acquired businesses decreased by 5 percent. Operating profit amounted to MSEK 104 (MSEK 21) in the third quarter. Excluding the effects of IFRS16, operating profit amounted to MSEK 95. From the beginning of the year, operating profit amounted to MSEK 226 (MSEK 172). Excluding effects from IFRS 16 the operating profit amounted to MSEK 200, resulting in an operating margin of 1.2 percent (1.1 percent). Operating margin in vehicles sales amounted to 0.7 percent (0.7 percent). The new car sales decreased by 10 percent during the first nine months, excluding acquired businesses. Lower sales have also resulted in lower volume bonuses from wholesalers, which had a negative impact on earnings. At the same time, sales of used cars have increased by 8 percent, where also the profitability for used cars has improved gradually since the launch of Hedin Certified at the end of last year. The operating margin in After sales was 3.1 percent (2.8 percent). Earnings improved in the third quarter through cost savings. Net sales excluding acquired businesses increased by 7 percent compared to previous year. The operating profit in Hedin Bil decreased due to lower sales volume in new cars, partly offset by increased sales and profitability in used cars. Operating profit in Bavaria increased compared to last year, mainly due to efficiency improvements in after sales and cost savings. Operations in Belgium started last year and are proceeding as planned. In August and September another three dealerships were added. Financial income and expenses increase compared to previous year, primarily due to the implementation of IFRS16. The financial net increased by MSEK 80, whereof approx. MSEK 50 are interest costs of right-of-use assets according to IFRS16. The remaining increase is due to increased financing and higher variable interest rates. Cash flow from operating activities was MSEK 1,151 (MSEK 626), and MSEK 785 excluding effects from IFRS16. Acquisition of subsidiaries has taken place with a net of SEK 306 million for three dealerships in Norway and three dealerships in Belgium. Investments in intangible and tangible fixed assets, excluding leasing vehicles and rightof-use assets, amounted to MSEK 115 (MSEK 141) during the first nine months of the year. Sold vehicles 3rd quarter 2019 New cars New light commercial vehicles New heav y trucks Used cars Used light commercial vehicles Used heav y trucks Total 9,341 1,574 65 7,301 511 46 18,838 2018 8,747 1,343 100 7,352 636 29 18,207 1 January - 30 September 2019 29,652 4,877 295 22,253 1,548 158 58,783 Year 2018 29,227 5,377 303 21,750 1,828 204 58,689 2018 38,810 7,743 410 28,902 2,396 243 78,504 9