Q3 2024 Bilia AB Earnings Call Transcript
Key Points
- Bilia AB (FRA:BHJC) reported a 3% organic increase in net turnover, driven by higher deliveries of used cars and growth in the service business.
- The service business demonstrated strong demand and resilience, contributing 74% of the group's earnings with a profitability of SEK221 million, which is SEK60 million higher than last year.
- Operational cash flow for the third quarter was SEK480 million, contributing to a total of SEK1.3 billion for the first nine months, significantly higher than the previous year.
- The order intake for new cars increased by 11% compared to the previous year, indicating improved activity in all countries.
- Bilia AB (FRA:BHJC) maintained a stable net debt to EBITDA ratio of 1.5 times, well below their target of 2.0 times, reflecting strong financial management.
- Profitability from new car sales was lower compared to the previous year, primarily due to reduced turnover.
- The stock of fully electric vehicles experienced price instability, impacting the used car market segment.
- The Swedish market delivered lower earnings due to challenges in the new car business.
- Higher interest costs led to an increased financial net of SEK83 million for the quarter, compared to the previous year.
- Start-up expenses related to the Jaguar Land Rover joint venture impacted financial results and are expected to continue into the fourth quarter.
Thank you for the introduction, and welcome to Bilia's third quarter results presentation with CEO, Per Avander; CFO, Kristina Franzen; and I, Carl Fredrik Ewetz. We also have our Deputy CEO, Stefan Nordstrom here today.
The agenda is that Per will start going through the current situation in the car industry followed by Q3 numbers. Then Kristina will go through the financial situation, and I will conclude with an outlook for Q4.
So by that, I'll leave the word to Per Avander.
Thank you very much, Carl Fredrik, and we start with the current market situation. There is a strong demand in the service business with quite long booking times. Our customers take care of the cars, both for service and repairs. And right now, we are in the important tire season. The fleet business, still a stable demand for new cars in Sweden, with a market share around 60% of the total sales. The private consumers are still in
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