Hedin Mobility Group’s Interim Report Q3, 2024: Bright spots in a continually challenging market

CEO Anders Hedin: “Demand remains weak in most of our markets, reducing new car sales. The decreased demand has led to price pressure and reduced margins. Over the past year, manufacturers have significantly lowered prices on new electric cars, which negatively impacts margins on existing inventory as well as buyback commitments for leasing vehicles. In general, the used car market is strong and growing in many of our markets, but with lower margins. Technological advancements and falling prices have made used electric cars a more attractive and realistic option for a broader range of car buyers.

Despite a challenging market outlook, we see several bright spots. KW Group reports record results for the year, and our Norwegian operations have shown positive results for the fourth
consecutive month. Additionally, the business in the Netherlands continues to deliver stable results, and Hedin Performance Cars, which sells Porsche, maintains a strong position.

During the year, several interest rate cuts have been implemented. With expectations of further rate cuts and lower inflation forecasts, we are optimistic about a gradual improvement in the economy and demand in the coming quarters. The effects are already evident in customer demand, where we have seen a gradually increasing order intake since September.

Our assessment is that the market reached a stabilisation point during the summer, and we foresee better margins going forward, combined with a lower cost base.”

The Group in summary

July – September 2024

• Net sales increased by 6% to MSEK 21,482 (20,250). Adjusted for acquisitions and exchange rate changes net sales decreased by 8% compared to the previous year for comparable units.
• Operational earnings decreased to MSEK 152 (491).
• Operating profit amounted to MSEK 171 (637).
• Profit/loss for the period amounted to MSEK -104 (278).

January – September 2024

• Net sales increased by 18% to MSEK 68,284 (57,703). Adjusted for acquisitions and exchange rate changes, net sales decreased by 3% compared to the previous year for comparable units.
• Operational earnings decreased to MSEK 387 (1,276).
• Operating profit amounted to MSEK -37 (1,554).
• Profit/loss for the period amounted to MSEK -822 (830).

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