AI Interim report Q3 2020 1
INTERIM REPORT 2020 | I.A. HEDIN BIL AB | JULY 1S
T - SEPTEMBER 30TH Financial summery JULY - SEPTEMBER 2020 Net sales increased in the third quarter by 24 percent to MSEK 6,516 (MSEK 5,262). Sales of Mercedes-Benz passenger cars has changed into an agent model, meaning that invoicing to end customers are made directly from the importer. Only the sales commission is reported in the net sales of the group. During 2019 several dealerships were acquired in Belgium and Norway which increases net sales. Net sales adjusted for these changes has increased by 21 percent for comparable businesses. Operating profit increased by MSEK 136 to MSEK 240 (MSEK 104). Operating margin increased to 3.7 percent (2.0 percent). During spring, several cost-saving actions have been taken to minimize the economic effects of Covid-19. This includes stopping purchases, travel, consultants, recruitment and reducing marketing. Due to this, together with the actions that were taken last year, the external costs and employee benefit expenses have been reduced to 10.3 percent of the net sales (13.5 percent). The margin of operational earnings in vehicles sales amounted to 2.7 percent (1.3 percent). The sales of new cars in comparable business increased by 2 percent during the quarter, while sales of used cars increased by 18 percent. Gross margin in used vehicles increased after a small drop in the second quarter. The margin of operational earnings in after sales was 8.9 percent (4.9 percent). Earnings have improved through efficiency improvements and cost reductions. Net sales Sweden Norway Belgium Segment reconciliation Total Operat ional earnings Sweden Norway Belgium Segment reconciliation Total Margin Sweden Norway Belgium Total Third quarter 2020 3,837,656 1,271,386 1,129,396 277,545 6,515,983 2019 3,511,866 904,407 751,347 94,852 5,262,472 Third quarter 2020 139,545 83,073 24,581 11,213 258,412 1 January - 30 September 2020 11,030,073 3,222,306 2,718,519 730,911 17,701,809 2019 11,720,128 2,315,302 2,131,417 215,747 16,382,594 2019 99,988 10,010 912 10,391 121,301 Third quarter 2020 3,6% 6,5% 2,2% 4,0% 1 January - 30 September 2020 257,072 198,588 25,864 33,934 515,458 Year 2019 14,918,113 3,968,623 3,070,758 343,888 22,301,382 2019 160,622 54,589 31,091 27,192 273,494 2019 2,8% 1,1% 0,1% 2,3% 1 January - 30 September 2020 2,3% 6,2% 1,0% 2,9% Year 2019 241,209 109,089 39,111 38,270 427,679 2019 1,4% 2,4% 1,5% 1,7% Year 2019 1,6% 2,7% 1,3% 1,9% The operational earnings in Sweden increased by MSEK 40 in the third quarter compared to last year. The sale of new vehicles is lower than last year, even if the sale in some business areas like Bavaria (BMW) and Hedin Performance Cars (Porsche) are increasing. The sale of used vehicles continues to be strong and are increasing compared to last year. The profitability improves both in vehicle sales and after market by efficiency improvements. Operating earnings in Norway increased by MSEK 73 compared to last year through higher sales of both new and used vehicles. Efficiency improvements in after sales have also contributed to the increased profit. In Belgium the business was closed part of the spring due to Covid-19. Since then, the sales have increased and the operational earnings has improved by MSEK 24 compared to the same quarter last year. 8