Anders Hedin Invest - Year-end Report 2018 1
I.A. HEDIN BIL AB FINANCIAL SUMMARY JANUARY – DEC
EMBER, 2018 Net sales increased by 66 percent to 21 043 MSEK (12 657 MSEK). Organic growth amounted to 12 percent, which is higher than the total market growth. Sales has been affected by changes in vehicle and road tax in all of our home markets. Sales during the fourth quarter increased by 34 percent, while organic growth was 9 percent, which we estimate was better than the market as a whole. Operating profit amounted to 227 MSEK (197 MSEK) at a margin of 1.1 percent (1.6 percent). Operating margin in vehicle sales are still under pressure at 0.6 percent (1.0 percent). For after market, the operating margin was flat at 3.0 percent (3.0 percent), and managed to absorb a higher depreciation of fixed assets due to investments in aftermarket service. Fourth quarter operating profit decreased to 55 MSEK (97 MSEK), mainly due to start up and integration costs. The Operating Margin of business under the Hedin brand amounted to 0.9 percent (1.5 percent), while the operating margin in Bavaria, acquired in October 2017, amounted to 1.8 percent (1.9 percent). The business in Belgium, starting with seven Mercedes-Benz dealerships in and around Ghent acquired on April 1st, 2018, and another five around Antwerp acquired on August 22nd, 2018, has been heavily affected during the autumn by the change in emission regulation. During the winter, sales has recovered to expected levels. Financial cost has increased primarily due to acquisition financing and working capital financing of newly added businesses. Cash flow from operations was affected by an increase in vehicle inventory level due to the expansion of the used car business. Acquisitions of subsidiaries affected investments with 625 MSEK (1 327 MSEK), the majority of which is related to the acquisition of the Belgian Mercedes-Benz dealerships in and around Ghent in April and the Mercedes-Benz dealerships around Antwerp in August. Sold vehicles 4 th quarter 2018 New cars New light commercial vehicles New heavy trucks Used cars Used light commercial vehicles Used heavy trucks Total 9 583 2 366 84 6 860 432 32 19 357 2017 8 187 1 961 37 5 974 365 25 16 549 1 January - 31 December 2018 38 810 7 743 387 28 610 2 260 236 78 046 2017 27 902 6 606 228 19 940 1 726 127 56 529 I.A. HEDIN BIL AB│YEAR END REPORT 2018 11