2021-Q1-Hedin-Bil-engelska 1
Words from our CEO A strong start of the year The
year began strongly with increased sales of 17%. The efficiency improvements that have taken place in recent years have resulted in increase of operational earnings by 96 percent to MSEK 254, an increase of MSEK 124. Operations in all markets increased both sales and improved earnings and margins. Our sales in Sweden increased by 18 percent, with an increase in both new and used vehicles, and operational earnings increased by MSEK 86. The Swedish market measured in the number of new registrations of passenger cars increased by 37 percent compared to the previous year. Last year, there was a decline in sales in March due to the outbreak of Covid-19. This year, sales were very strong in March, partly due to changed tax rules from 1 April, which means higher costs for all passenger cars and vans except for electric cars. Sales in Norway increased by 21 percent and operational earnings increased by MSEK 22. The Norwegian market measured in the number of new car registrations increased by 12 percent compared to the previous year. Our sales in Belgium increased by 30 percent in the first quarter. In Belgium, the total market decreased by 6 percent throughout the quarter. This has been affected by restrictions due to Covid-19, which has meant that operations have been kept closed from time to time. In March, registrations increased by 56 percent compared to last year. Order intake remains strong and we have a good order bookings. Lack of certain components in car manufacturing has led to a certain delay in deliveries but has only had a marginal effect on our sales. During the year, many new models will be launched, not least in the electric car segments, which will contribute to the positive development. We continue to have high occupancy in our workshops, even though we see an effect of decreases of car driving as more people work from home or workplaces have been closed due to Covid-19. We follow the guidelines set by the local authorities in each market, in order to limit the spread of infection and protect our staff and our customers. It affects the entire market and we are constantly adapting our operations to the changed conditions this entails. This implicates certain challenges, but at the same time also provides opportunities. We have always worked long-term and we are constantly continuing to develop and improve the business, and I look forward to a continued exciting year. Anders Hedin 7 INTERIM REPORT Q1 2021 | I.A. HEDIN BIL AB | 1 JANUARI – 31 MARS