Interim Report Q4 2019 1
INTERIM REPORT 2019 | I.A. HEDIN BIL AB | OCTOBER
1ST - DECEMBER 31ST Financial summary January – September 2019 Net sales increased in the fourth quarter by 10 percent to MSEK 5,919 (MSEK 5,372). Net sales excluding acquired businesses is about the same level as last year. From the beginning of the year net sales increased by 6 percent, while net sales excluding acquired businesses decreased by 4 percent. Sales of Mercedes-Benz cars has changed into an agent model, meaning that invoicing to end customers are made directly from the importer. Only the sales commission is reported in the net sales of the group. Operating profit amounted to MSEK 134 (MSEK 55) in the fourth quarter. Excluding the effects of IFRS16, operating profit amounted to MSEK 12495. From the beginning of the year, operating profit amounted to MSEK 360 (MSEK 227) and an operating margin of 1.6 percent (1.1 percent). Excluding effects from IFRS 16 the operating profit amounted to MSEK 327, and an operating margin of 1.5 percent. Operating margin in vehicles sales amounted to 0.8 percent (0.6 percent). The sales of the new cars decreased by 5 percent during the year, excluding acquired businesses, of which most of the decline is due to the change in Mercedes-Benz into an agent model. At the same time, sales of used cars have increased by 11 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 3.5 percent (3.0 percent). Earnings have improved during the year through efficiency improvements. The operating profit in Hedin Bil has improved compared to last year. A lower profitability in sale of new cars, are offset by increased sales and profitability in used cars. The profitability in after sales has also improved by cost savings. Operating profit in Bavaria increased compared to last year, mainly due to efficiency improvements in after sales. Operations in Belgium started last year and are proceeding as planned. In August and September this year, 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 98, whereof approx. MSEK 68 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 1,508 (MSEK 460), and MSEK 1,001 excluding effects from IFRS16. Acquisition of subsidiaries has taken place with a net of MSEK 306 for three dealerships in Norway and three dealerships in Belgium. Investments in intangible and tangible fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 186 (MSEK 196) during the year. Sold vehicles New cars New light commercial vehicles New heav y trucks Used cars Used light commercial vehicles Used heav y trucks Total 4 th quarter 2019 9,895 2,257 76 6,794 587 31 19,640 2018 9,583 2,366 84 6,860 432 32 19,357 1 January - 31 December 2019 39,547 7,134 371 29,047 2,135 189 78,423 2018 38,810 7,743 387 28,610 2,260 236 78,046 9