Year-end report 2020 I.A. 1
YEAR-END REPORT 2020 | I.A. HEDIN BIL AB | OCTOBE
R 1ST - DECEMBER 31ST JANUARY – DECEMBER 2020 Net sales increased 8 percent to MSEK 24,064 (MSEK 22,301). Net sales adjusted for acquired businesses and other changes increased by 6 percent for comparable businesses. Operating profit increased by MSEK 368 to MSEK 729 (MSEK 360). Operating margin increased to 3.0 percent (1.6 percent). From the beginning of March, several cost-saving actions have been taken to minimize the economic effects of Covid-19, which together with previous actions have improved the result. Actions include temporary and permanent staff reductions, and a freeze on recruitments, purchases and travels. Where possible, we have used financial support packages for furloughing. In Belgium, the state took over most of the personnel cost when the business was shut, which decreased cost by MSEK 32. We have also used government support in Sweden and Norway, which has reduced personnel cost by MSEK 20 in Sweden and MSEK 8 in Norway. The margin on operational earnings in vehicles sales amounted to 2.1 percent (1.0 percent). The sales of the new vehicles in comparable business decreased by 1 percent. Sales of used vehicles increased by 10 percent. Sales of used cars in Sweden within Hedin Certified has had a positive development during the year and has increased by 13 percent. Gross margin increased in new vehicles. The margins in used vehicles have recovered after a decline during the spring. The margin of operational earnings in after sales was 7.4 percent (4.6 percent). Earnings have improved through efficiency improvements and cost reductions. The operational earnings in Sweden increased by MSEK 163 compared to last year. A lower volume in sale of new vehicles, are offset by increased sales volume and profitability in used cars. The profitability in after sales has improved by efficiency improvements. The operational earnings in Norway increased by MSEK 183 compared to last year through higher vehicle sales in the new car business and increased margins. Efficiency improvements in after sales have also contributed to the increased profit. In Belgium, where the business in periods has had full or partly lock-downs, the profit increases by MSEK 28. Financial net amounted to MSEK -217 (-212), a change of MSEK 5, whereof MSEK 6 is attributable to exchange rate differences and MSEK 11 to an increase of right-to-use assets according to IFRS16. Cash flow from operating activities was MSEK 1,708 (MSEK 1,508). Inventory decreased during the period, which reduced the utilized overdraft facilities. Investments in intangible and tangible fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 170 (MSEK 186). Available cash including unused overdraft facility amounted to MSEK 843 as of December 31. Financial net amounted to MSEK -222 (-212), a change of MSEK 10, whereof MSEK 6 is attributable to exchange rate differences and MSEK 11 to an increase of right-to-use assets according to IFRS16. Cash flow from operating activities was MSEK 1,708 (MSEK 1,508). Inventory decreased during the period, which reduced the utilized overdraft facilities. Investments in intangible and tangible fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 170 (MSEK 186). Available cash including unused overdraft facility amounted to MSEK 843 as of December 31. Sold vehicles 4th quarter 2020 New cars New light commercial vehicles New heavy trucks Used cars Used light commercial vehicles Used heavy trucks Total 10,204 1,840 118 7,836 583 39 20,620 2019 9,895 2,257 76 6,794 587 31 19,640 1 January - 31 December 2020 38,391 6,264 302 31,579 2,457 148 79,141 2019 39,547 7,134 371 29,047 2,135 189 78,423 10