Q2-2021-HEDIN-BIL-ENG 1
JANUARY - JUNE 2021 Net sales increased by 24 per
cent to MSEK 13,883 (MSEK 11,186). In Sweden the sales increased by 25 percent, with increase of new vehicles of 31 percent and 10 percent in used vehicles. Sales in Norway increased by 30 percent, with increase in new vehicles of 37 percent and 19 percent in used vehicles. Sales in Belgium increased by 48 percent, where the business was closed for six weeks last year due to Covid-19 restrictions. Operational earnings increased by MSEK 256 to MSEK 513 (MSEK 257). The margin of operational earnings increased to 3.7 percent (2.3 percent). The improved profit is mainly a result from increased sales volumes. The gross margin in used cars continues to improve, and the gross margin for new vehicles are also increasing. We continue to focus on operational costs both in vehicle sales and after market, and the operational costs in relation to sales have been reduced from 13.2 to 12.1 percent of net sales. The margin of operational earnings in vehicles sales amounted to 2.7 percent (1.1 percent). The improvement is mainly driven by increased volumes, where sales increased by 30 percent. The sales volume last year was affected by Covid-19 restrictions, for example the dealerships in Belgium were closed part of the spring. In addition, the gross margin in used cars has improved in all markets. Operational costs compared to net sales has also decreased. The margin of operational earnings in after market was 6.8 percent (6.3 percent). Net sales increased by 5 percent. The improved result is driven by increased net sales in combination with efficiency improvements and cost reductions that have been implemented earlier. Operational earnings in Sweden increased by MSEK 178 compared to last year. Sales of both new and used vehicles have increased. We decided last year to reduce the inventory of used cars with temporary declines in gross margins. The margins have been improved this year on both new and used vehicles, which together with increased sales have improved the result. Operational earnings in Norway increased by MSEK 27 compared to last year. Net sales increased 30 percent and the increase comes from both new and used vehicles. In Belgium the business was partly closed last year due to Covid-19. This year sales increased 48 percent and the operational earnings increases MSEK 51. The improved profit is mainly driven by increased net sales. Financial net amounted to MSEK -97 (MSEK -121), including exchange rate differences of MSEK +7 (-8). Cash flow from operating activities amounted to MSEK 989 (MSEK 1,180). Investments in intangible and tangible fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 73 (MSEK 64). Available cash including unused overdraft facilities amounted to MSEK 677 as of June 30. Sold vehicles 2nd quarter 2021 New cars New light commercial vehicles New heavy trucks Used cars Used light commercial vehicles Used heavy trucks Total 13,082 2,047 143 8,548 693 57 24,570 2020 8,023 1,276 62 8,116 591 37 18,105 1 January - 30 June 2021 24,815 4,589 264 16,194 1,281 106 47,249 Year 2020 18,692 3,058 117 15,487 1,254 73 38,681 2020 38,391 6,264 302 31,579 2,457 148 79,141 10 INTERIM REPORT Q2 2021 | I.A. HEDIN BIL AB | 1 APRIL – 30 JUNE