Q2-2021-HEDIN-BIL-ENG 1
FINANCIAL SUMMURY APRIL - JUNE 2021 Net sales inc
reased by 32 percent to MSEK 7,294 (MSEK 5,542). Sales of new vehicles increased by 53 percent, and sales of used vehicles increased by 17 percent. The comparison against last year is affected by a decline during spring 2020, after the outbreak of Covid-19 and parts of the businesses were closed. In Sweden the sales increased by 32 percent, with increases both in new and used vehicles. Sales within our concept Hedin Certified increased by 14 percent. Sales in Norway increased by 39 percent, also with a strong sales development in both new and used vehicles. In Belgium sales increased by 71 percent. Last year was affected by restrictions in the outbreak of Covid-19, and the business was closed for six weeks during spring. Operational earnings increased by MSEK 131 to MSEK 259 (MSEK 127). The margin of operational earnings increased to 3.5 percent (2.3 percent). The improved profit is mainly driven by increased sales. The gross margin from sales of used cars continues to improve, and the gross margin from sales of new vehicles is 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 12.5 to 11.7 percent of the net sales. The margin of operational earnings in vehicles sales amounted to 2.5 percent (1.0 percent). The improvement is mainly driven by increased volumes, where sales increased by 38 percent. The sales volumes last year were affected by Covid-19 restrictions, for example the dealerships in Belgium were closed part of the spring. In addition, the gross margin from 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 7.3 percent (6.9 percent). Net sales increased by 7 percent. The improved result was driven by increased net sales in combination with efficiency improvements and cost reductions that have been implemented earlier. Net sales Vehicle sales After market Segment reconciliation Total Operational earnings Vehicle sales After market Segment reconciliation Total Margin Vehicle sales After market Total 2nd quarter 2021 6,677,076 1,068,799 -451,961 7,293,914 2nd quarter 2021 169,477 77,845 11,314 258,636 2nd quarter 2021 2.5% 7.3% 3.5% 2020 4,830,552 1,000,287 -288,810 5,542,029 1 January - 30 June 2021 12,697,678 2,219,041 -1,033,586 13,883,133 Year 2020 9,763,198 2,121,009 -698,381 11,185,826 2020 50,253 68,929 8,295 127,477 1 January - 30 June 2021 338,895 151,277 22,566 512,738 2020 1.0% 6.9% 2.3% 1 January - 30 June 2021 2.7% 6.8% 3.7% 2020 21,216,497 4,397,126 -1,549,709 24,063,914 Year 2020 103,928 134,154 18,964 257,046 2020 438,068 326,477 40,192 804,737 Year 2020 1.1% 6.3% 2.3% 2020 2.1% 7.4% 3.3% The operational earnings in Sweden increased by MSEK 92 compared to last year. The sale 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 the higher sales have improved the result. Operational earnings in Norway increased by MSEK 4,5 compared to last year. Net sales increased 39 percent and the increase comes from both new and used vehicles. There were high sales of Taycan, the electric vehicle from Porsche during the second quarter last year, which affects the comparison in sales and earnings. In Belgium the business was partly closed last year due to Covid-19. This year the sales increased 71 percent and the operational earnings increased MSEK 34. The improved profit is mainly driven by increased net sales. 8 INTERIM REPORT Q2 2021 | I.A. HEDIN BIL AB | 1 APRIL – 30 JUNE