Q4 INTERIM REPORT HEDIN MOBILITY GROUP 1
JANUARY - DECEMBER 2021 Net sales increased by 17
% to MSEK 28,191 (MSEK 24,064). The restructuring, which took place in October, means that all vehiclerelated operations in the Hedin Group have been transferred to Hedin Mobility Group. These activities are included in the reported data for three months from October 1. In connection with this, we have changed the division into segments to reflect our different business areas. “Retail” refers to the previously part of the Group with the addition of its retail operations in Switzerland. Our wholesale operations in Norway and Denmark through GS Bildeler A/S and Koed AS have been moved to the “Distribution” segment, which also includes imports and wholesale trade of cars, tires, and spare parts. The “Other” segment mainly includes the rental car and leasing operations. In addition to this change, there have been acquisitions in Sweden, mainly by dealers of Ford. Adjusted for changes, net sales increased by 4% for comparable units. Operational earnings increased by MSEK 341 to MSEK 1,146 (MSEK 805). The operating margin increased to 4.1% (3.3%). Retail Net sales increased by 14% to MSEK 26,392 (MSEK 22,959). Sales of new and used vehicles increased by 33% and 11% respectively. In Sweden, sales increased by 10%. Sales to private leasing have increased throughout the year and including these vehicles, has invoicing increased 30%? . Sales in Norway increased by 17%. In Belgium, sales increased by 15%, with sales slowing at the end of the year due to component shortages in the factories. Switzerland is part of the Group from the fourth quarter. Operational earnings increased by MSEK 267 to SEK 1,003 (MSEK 736). The margin increased to 3.8% (3.2%). In Sweden, operational earnings increased MSEK 253 and the margin increased to 4.0% (2.7%). In Norway, operational earnings increased MSEK 27 and the margin was 5.9% (6.2%). In Belgium, operational earnings improved by MSEK 7 with an unchanged margin of 1.7%. Switzerland showed a negative result for the year. In Switzerland, several activities are also underway to increase profitability both through increased volume and efficiency improvements in the business. Operating margin in car sales was 2.8% (2.1%). The increase is largely due to the increase in volume, where sales increased by 15%. There are also improvement in the gross profit margins on used vehicles, which have improved in all markets. Operating costs in relation to sales are decreasing and also contributing to the improved operating margin. Operating margin in the Service Market was 6.6% (7.2%). Net sales increased 21% and operational earnings MSEK 33. Distribution The Distribution business area includes the import and distribution of vehicles, tires, and spare parts. Most of the operations were transferred to Hedin Mobility Group in connection with the restructuring in October. Sales and earnings are only included from October 1 for these operations. The import of Ford was taken over on January 4. The brand has developed very positively during the year and increased its market share significantly. Sales in the fourth quarter were the best quarter in sales in the last ten years. The Chinese electric car brand MG was introduced in the spring and has been very well received by the Swedish market. Demand has been very strong, and the order backlog is at a record high for 2022. Dodge and RAM are imported from the US and sold through retailers throughout Europe. Sales during the autumn have been limited due to a lack of deliveries. The order backlog at year-end covers the entire next year’s expected sales. Net financial items amounted to MSEK -230 (MSEK -217), which was affected by changes in exchange rates of MSEK +35 (MSEK +6). The cost associated with the early redemption of the bond amounted to SEK 7.5 million. The remaining increase in interest expenses relates to increased investments in leasing vehicles. Cash flow from operating activities amounted to MSEK 2,527 (MSEK 1,708). Investments in fixed assets excluding leasing vehicles and right-of-use assets amounted to MSEK 159 (MSEK 170). Available liquidity including unused overdraft amounts to MSEK 3,018. 13 YEAR-END REPORT 2021 | HEDIN MOBILITY GROUP AB (PUBL) | JANUARY–DECEMBER