AI interim report Q1 2020 1
INTERIM REPORT 2020 | I.A. HEDIN BIL AB | 1 JANUA
RY - 31 MARCH Financial summary JANUARY – MARCH 2020 Net sales increased in the first quarter by 6 percent to MSEK 5,644 (MSEK 5,329). Sales of Mercedes-Benz passenger 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. During 2019 several dealerships were acquired in Belgium and Norway which increases net sales. Net sales adjusted for these changes has increased by 8 percent for comparable businesses. In Belgium the business was closed from March 18, due to restrictions regarding Covid-19. The effect on nets sales is approximately 3% for the quarter. Operating profit increased by MSEK 33 to MSEK 110 (MSEK 77). Operating margin increased to 1.9 percent (1.4 percent). Operating margin in vehicles sales amounted to 0.9 percent (0.5 percent). The sales of the new cars in comparable business increased by 8 percent during the first quarter, while sales of used cars was at same level as last year. Sales of used cars in Sweden within Hedin Certified continued the positive development and increased by 7 percent, while the sales of used cars in Norway decreased in the end of the period. Gross margin increased both in new and used vehicles compared to same period last year. The operating margin in After sales was 4.9 percent (4.4 percent). Earnings have improved through efficiency improvements and cost reductions. The operating profit in Hedin Bil has improved compared to last year. A lower volume in sale of new cars, are offset by increased sales and profitability in used cars. The profitability in after sales has also improved by efficiency improvements. Operating profit in Bavaria increased compared to last year through higher vehicle sales, and efficiency improvements in after sales. In Belgium the business has been closed since March 18, which causes the decline in operating profit. The beginning of the year until the closing the operations in Belgium reported improvement in profitability compared to last year. Financial net increased by MSEK 13 compared to last year, of which MSEK 9 is due to exchange rate differences. The remaining increase is due to increased financing and higher variable interest rates. Cash flow from operating activities was MSEK 451 (MSEK 400). Investments in intangible and tangible fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 33 (MSEK 26) during the first quarter. Available cash including unused overdraft facility amounted to MSEK 519. Sold vehicles 1st quarter 2020 New cars New light commercial vehicles New heav y trucks Used cars Used light commercial vehicles Used heav y trucks Total 9,716 1,782 45 6,753 663 29 18,988 2019 11,480 1,812 131 7,500 487 70 21,480 Year 2019 39,547 7,134 371 29,047 2,135 189 78,423 9