Q2-2021-HEDIN-BIL-ENG 1
Words from our CEO Strong development in the seco
nd quarter After a very strong first quarter, the development continued during the second quarter as well. Sales increased 32 percent to MSEK 7,294 and operational earnings increased by MSEK 131 to MSEK 259, with a margin of 3.5 percent. That means that the quarter was one of the best in the Group’s history. Operations in all markets increased sales. Our sales in Sweden increased by 32 percent, and operational earnings increased by MSEK 92. The market in Sweden, measured in the number of new registrations of passenger cars, increased by 38 percent compared to the previous year. Sales in March was high due to changes in tax regulations from April 1, with a corresponding decline in April. Sales in June were high due to changes in taxation of company cars effective July 1. Sales in Norway increased by 39 percent and operational earnings increased by MSEK 5. The market in Norway measured in the number of new car registrations increased by 77 percent compared with the previous year. Sales in Belgium increased by 71 percent in the quarter, and operational earnings increased by MSEK 34. In Belgium, the comparison has been affected by restrictions due to Covid-19, where the operations have been kept closed from time-to-time last year. The Chinese electric vehicle brand MG was launched during April. The brand has its origins from the classic British car brand Morris Garage. The launch was performed after a very efficient start-up phase on 18 dealerships within Hedin Bil, and more dealerships were added in May and June. The launch was a success and deliveries to end customers started in June. MG was the most sold electric vehicle in June, and the second most sold vehicle of all types with the model ZS EV. We are also expanding within Ford, and apart from Uppsala in the beginning of the year we have signed agreements to acquire BilMånsson i Halland AB with dealerships in Halmstad and Värnamo, and BilGruppen Enköping. In addition, we have also acquired BilMånsson BC AB that is a dealer for Jaguar and Land Rover in Halmstad. The acquisitions were completed July 1. Order intake remains strong. The order backlog increases and amounts to 14,942 vehicles as of June 30. Lack of certain components, such as semi-conductors, in car manufacturing has led to a certain shift in deliveries, which partly has affected the order backlog. 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 Q2 2021 | I.A. HEDIN BIL AB | 1 APRIL – 30 JUNE