Hedin Mobility Group’s Half-year report 2024: Continued market challenges sharpen cost focus

CEO Anders Hedin: “The market has continued to be characterised by caution during the second quarter. We see weaker demand in most of our markets, particularly in electric vehicles, where the European market is complex, and significant price adjustments on electric cars have impacted our result with substantial write-downs and losses. The effect is that we see a decline in revenue within both Retail and Distribution, especially in new car sales.

To address the lower sales and adapt to the current market conditions, a cost-saving programme is underway, affecting all parts of our business. The programme is starting to yield results in the second half of 2024. We expect to save around SEK 1 billion per year when completed, which is anticipated to happen in 2025. The efficiency improvements are also a way to implement the economies of scales and synergies that the high acquisition rate in previous years has brought. It is our assessment that the market reached a stabilisation point during the second quarter, and we believe in better margins going forward, in combination with a decreasing cost base.

We see a continued positive development in sales compared with the previous year. By the end of August, the Swedish Riksbank decided to lower the key interest rate. With expectations of further interest rate cuts combined with lower inflation forecasts, we are optimistic about a gradual improvement in the economy and demand during the second half of the year.”

The Group in summary

April – June 2024

• Net sales increased by 18% to MSEK 23,218 (19,615). Adjusted for acquisitions and exchange rate changes, net sales decreased by 2% compared to the previous year for comparable units.
• Operational earnings decreased to MSEK 62 (402).
• Operating profit amounted to MSEK -214 (326).
• Profit/loss for the period amounted to MSEK -487 (160)

January – June 2024

• Net sales increased by 25% to MSEK 46,803 (37,453). Adjusted for acquisitions and exchange rate changes, net sales decreased by 1% compared to the previous year for comparable units.
• Operational earnings decreased to MSEK 234 (785).
• Operating profit amounted to MSEK -208 (917).
• Profit/loss for the period amounted to MSEK -718 (552)

The Half-year report is attached to this press release and is also available to download on Hedin Mobility Group’s website.

Contact
Kristina Wärmare, Global Communications Director, +46 31 790 00 82
ir@hedinmobilitygroup.com

Anders Hedin, CEO, +46 31 790 00 00

Per Mårtensson, CFO, +46 31 790 04 81