IA Hedin Bil - Interim Report Q2 2019 1
INTERRIM REPORT 2019 | I.A. HEDIN BIL AB | APRIL
1ST - JUNE 30TH CEO Anders Hedin comments The second quarter saw a decrease in new car sales, while Hedin Bil continued to increase market shares. Sales of used cars showed a positive development. Aftermarket services increased while margins decreased due to investments. The development in new and used car sales and aftermarket services was a mixed bag in the second quarter. The Swedish market for new cars has cooled down, mostly due to the substantial sales push in the second quarter last year due to new tax regulations. After a convincing start of 2019, the Norwegian market for new car sales decreased in the second quarter, however still showing an increase year to date. The Belgian market for new car sales also decreased in the second quarter. We have now reached close to 20 percent market shares of Mercedes-Benz in the overall Belgian market and have established ourselves as the major player in Flanders. The profitability of new car sales has been overall affected by a decrease in bonus due to smaller volumes. The used car business maintained volumes while continuing to improve margins. Sales from aftermarket services increased, while profits were negatively affected by increased costs from newly established business and refurbishments. We continue to focus on used car sales and aftermarket services in all our markets. It is particularly pleasing that we launched the Hedin Auction website during the second quarter, which is another example of our broadened digital offer. Hedin Auction is initially an auction site targeted at dealers for vehicles that Hedin Bil do not offer with a guarantee. It increases transparency for both seller and buyer which contributes to increased margins for Hedin Bil. During the second quarter, we have changed the name to Hedin Automotive for the 12 Belgian dealerships which were flying under local flags. The market push towards alternative fuels continue, where electric vehicles and plugin hybrid electric vehicles are currently outperforming the market. Our wide offer of brands and models gives us the strength of relevant products over time when our customers shop for a new vehicle. We also continue the focus on developing our digital platforms for car sales and fleet administration, together with various packaged offers to provide a carefree car ownership. Anders Hedin 7