Q2 2024 Bilia AB Earnings Call Transcript
Key Points
- Net turnover increased organically by 8%, driven by higher deliveries of used cars and growth in the service business.
- Strong demand in the service business across all countries, with an organic growth of 8% and profitability of SEK292 million.
- Improved earnings in Norway, with a 15% growth in the service business and better efficiency in workshops.
- Generated a strong operating cash flow of around SEK420 million in Q2, totaling over SEK800 million for the first half of the year.
- Acquisition of a Volkswagen dealer in Stockholm, doubling market share for the Volkswagen brand in Sweden.
- Lower demand and activities for all brands in Western Europe, impacting overall performance.
- Weaker earnings in the car business in Sweden, contributing to a lower overall result.
- Lower profitability in the used car business, with a result of SEK90 million compared to SEK101 million last year.
- Net debt increased to SEK2.7 billion, higher than the SEK2.4 billion in December 2023.
- Challenging market situation for smaller dealers with brands that have a low market share, leading to bankruptcies.
Thank you very much, and welcome to Bilia's second quarter result presentation with CEO, Per Avander; CFO, Kristina Franzén; and I Carl Fredrik Ewetz. The agenda today, we will start with the current market situation in the car industry. I will go through the Q2 numbers, Kristina, will then go through the financial situation, and I will conclude with an outlook for the coming quarter and the rest of the year.
So by that, let's start. I leave the word to Per Avander.
Thank you very much, Carl Fredrik. And we start with the current market situation in the car industry. There is a very good and strong demand in the service business with quite long booking times. Our customers take care of their cars, both a service and different repairs. As workshop repairs and bolt them paint shop repairs.
The fleet business has still a stable demand for new cars in Sweden. The private consumers are more wait and see and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
