IA Hedin Bil - Interim Report Q2 2019 1
INTERRIM REPORT 2019 | I.A. HEDIN BIL AB | APRIL
1ST - JUNE 30TH Financial summary January – June 2019 Net sales decreased in the second quarter by 8 percent to MSEK 5,791 (MSEK 6,277). Net sales excluding acquired businesses decreased by 15 percent. From the beginning of the year net sales increased by 3 percent, while net sales excluding acquired businesses decreased by 7 percent. Operating profit amounted to MSEK 123 (MSEK 151). Operating profit excluding IFRS16 amounted to MSEK 105, and the operating margin was 0.9 percent (1.4 percent). Operating margin in vehicles sales amounted to 0.5 percent (0.9 percent). Lower sales have had a negative effect, which also gives lower volume bonuses from wholesalers. Sales of used cars increased by 9 percent (excluding acquired businesses) compared to last year, and the profitability has improved since the launch of Hedin Certified at end of last year. The sales of new cars decreased by 11 percent during the first six months, excluding acquired businesses. The operating margin in after sales amounted to 2.6 percent (3.6 percent). Operating costs have increased partly due to new facilities. The number of invoicing days is one day less this year, which also have had a negative impact on operating margin. Net sales excluding acquired businesses increased by 5 percent compared to last year. The operating profit in Hedin Bil decreased due to lower sales volume in new vehicles, 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. The business in Belgium started last year and develops as planned. Financial income and expenses increase compared to last year, primarily because of implementation of IFRS16. The financial net increased by MSEK 48, whereof approx. MSEK 34 are interest costs of right-of-use assets according to IFRS16. The costs also increase from increasing debt and higher variable interest rates. Cash flow from operating activities was MSEK 745 (MSEK 149), and MSEK 501 excluding effects from IFRS16. The inventory has decreased by MSEK 224 from year-end. Last year the cash flow from operating activities were affected by increased inventory due to the implementation of Bonus-Malus, and increased trade receivables due to high sales in the end of the period. Investments in tangible assets excluding leasing vehicles and rightof-use assets amounted to MSEK 79 (MSEK 71). Sold vehicles 2nd quarter 2019 New cars New light commercial vehicles New heav y trucks Used cars Used light commercial vehicles Used heav y trucks Total 8,831 1,491 99 7,452 550 42 18,465 2018 11,704 2,082 121 8,040 623 130 22,700 1 January - 30 June 2019 20,311 3,303 230 14,952 1,037 112 39,945 Year 2018 20,345 4,029 203 14,407 1,192 175 40,351 2018 38,810 7,743 410 28,902 2,396 243 78,504 9