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.