Hedin Mobility Group’s Interim Report Q1 2024: Challenging market with price pressure on electric vehicles

CEO Anders Hedin: “The market has been characterized by caution during the first quarter. The considerable and relatively rapid increase in the interest rates has resulted in a decline in the order intake over the past year. At the same time, several European countries have reduced or completely removed the subsidies for electric vehicles. This has resulted in a decrease in the demand for electric vehicles, and several manufacturers have sharply reduced the prices to stimulate demand. This has in turn affected the market value of used electric vehicles and sold vehicles with a repurchase commitment, such as private leasing. This price pressure has affected the margins in the used vehicle market, which is the main reason for the decrease in operational earnings within Retail.

For several years, we have worked to diversify our business, geographically and with new business areas. Our dealership network spans over 12 countries, comprising more than 330 facilities and representing over 40 vehicle brands. Today, we are one of the major players within retail in the European automotive market. As we continue to grow, we want to do it together, unified under a common brand, with shared values, a common vision, and a strong focus on what matters most – our customers. Therefore, In 2024, all operations will be unified under the common brand name Hedin Automotive. This is already established in several markets, but it means that we are fully replacing the established brands Hedin Bil, Bavaria, Motor-Car and others.

There are clear signals that the interest rates will be decreased during the year and we see positive development in sales compared to previous year for comparable units. With expectations of decreased interest rate combined with lower inflation forecasts, we are optimistic about a gradual improvement in economic activity and demand during the second half of the year.”

The Group in summary

January – March 2024

• Net sales increased by 32% to MSEK 23,585 (17,838). Adjusted for acquisitions and exchange rate changes, net sales increased 1% compared to the previous year for comparable units.
• Operational earnings decreased with MSEK 288 to MSEK 95 (383).
• Operating profit amounted to MSEK 7 (591).
• Profit/loss for the period amounted to MSEK -231 (392)

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

Contact

Anders Hedin
CEO, Hedin Mobility Group
press@hedinmobilitygroup.com
+46 31 790 00 00

This information is information that Hedin Mobility Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-05-24 14:00 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