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

This information is information that Hedin Mobility Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-08-30 17:00 CEST.

About Hedin Mobility Group

Hedin Mobility Group is one of Europe's largest mobility providers, with more than 12,500 employees and operations in 14 countries. In 2023, net sales amounted to SEK 81.7 billion and the Group sold more than 218,000 vehicles.
 
Our operations consist of three main business areas:

• In Distribution, we are a significant importer/distributor of vehicles, spare parts, tires, rims and wheels as well as accessories on the European market. We are importer and/or distributor for BYD, Dodge and RAM, Ford and Ford F-150, Hongqi, INEOS Grenadier, MG as well as Renault, Dacia and Alpine. Within spare parts we are, among other things, an authorised partner for GM and Mopar in Europe as well as the exclusive global supplier of Saab Original parts.
• In Retail, we represent more than 40 brands and provide a comprehensive offer – sales, financing, insurance, and aftermarket services – comprising new and used passenger cars, commercial vehicles, and trucks to both private and corporate customers. Sales take place both online and via a European dealer network comprising more than 330 own dealerships with a total of over 800 sales points under the names Hedin Automotive and Carstore.
• In Mobility solutions, we address new user needs and sales models in the automotive industry by providing and developing innovative services. Through Carplus, Unifleet, MABI Mobility and Hedin Supercharge, users are offered various flexible and modern mobility solutions.

Hedin Mobility Group's operations also include Hedin IT, which provides the Group with high-end operations, support and digital development, as well as strategic investments in Mercedes-Benz Financial Services Slovakia, Lasingoo Sverige and Casi (formerly Imove).
 
Read more on www.hedinmobilitygroup.com
 
Part of Hedin Group
Hedin Mobility Group is part of the Hedin Group together with the Hedin Construction group and I.A. Hedin Fastighet AB. Hedin Group is also a partner in Consensus Asset Management and Ripam Invest AB, which owns Marstrands Kurhotell, Kurbadhus and Societetshus.
 
www.hedingroup.com