Year-end report 2020 I.A. 1
YEAR-END REPORT 2020 | I.A. HEDIN BIL AB | OCTOBE
R 1ST - DECEMBER 31ST CEO comment Hedin Bil ends the year with all-time high - Increased profitability in both car sales and the after market business - Increased deliveries - Strong cash flow and liquidity Results for the fourth quarter Operating profit during the fourth quarter increased by MSEK 135 to MSEK 289, which was an improvement of 88 percent compared to last year. Net sales in comparable units increased by 7.5 percent. The operations in all our markets improved both operating profit and operating margin. There has been a decline in sales of new vehicles in Sweden, but a very strong market for used cars. We have improved sales of both new and used vehicles in Norway. In Belgium there has been partly closed due to Covid-19, but the year-end is strong with high sales. New car sales increased by 2 percent in comparable units and the gross margin improved also. Sales of used cars increased by 14 percent with improved margins. In total, car sales contributed with MSEK 108 in increased profit. The after market business also performed stronger than last year and increased the profit by MSEK 29. Market development The market development was strong during the fourth quarter, showing a healthy demand while there were delays in the supply of vehicles due to the close downs in production earlier this year. New passenger car registrations in Sweden decreased by 17 percent compared to the fourth quarter of 2019. Last year December was a record month due to changes in taxes from January 1, 2020. December 2020 showed high sales, especially for electric and plug-in hybrid vehicles. For the full year, the market in Sweden declined 18 percent. In Norway, the new car registration increased 45 percent during the quarter, and the total year ended at -0.7 percent. The market in Belgium decreased 12 percent in the quarter, and the full year decreased by 21 percent. Savings program due to Covid-19 We are following the guidelines introduced by local governments in respective markets to limit the spread of the virus and to protect our personnel and our customers. They affect the markets and we are continuously adjusting our processes to the changes that are needed. There is a lot of effort behind the strong result delivered under challenging circumstances, for which I am both proud and grateful. We continue to focus on both profits and liquidity to be able to keep our long-term focus. Anders Hedin 7