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.

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. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-11-12 08:00 CET.

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, Corvette, Dodge and RAM, Ford and Ford F-150, Hongqi, INEOS Grenadier, IVECO, 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 50 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 350 own dealerships with a total of over 800 sales points under the names Hedin Automotive, Carstore, Stephen James and Motor Car Group.
• 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.
 
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