Hedin Mobility Group’s Year-End Report 2024: A challenging year for the automotive industry

CEO Anders Hedin: “Within Retail, we are proud to continue delivering both growth and margin improvement in our aftermarket business, which achieved an operating profit of MSEK 860 and a margin of 5.0%. We are making long-term investments in developing our aftermarket offering, which we see as providing solid and stable returns over time.

The sales of used cars have shown strong volume growth during the year but have been affected in terms of results by the negative price trend for electric vehicles. The declining prices of used electric cars have meant that vehicles sold with a repurchase agreement with predetermined residual value have been bought back at prices exceeding their market value. A significant portion of these losses is now expected to be behind us due to a more conservative approach to future residual value commitments.

As we summarise 2024, we reflect on the first loss-making year in the Group’s nearly 40-year history. The losses have multiple causes but are primarily related to falling prices on used electric vehicles. To reverse the negative trend, we initiated a cost-saving programme in the summer of 2024, which has now been completed. It has started to yield results, and we expect total annual savings of approximately 1 billion SEK, with the majority of the impact realised in 2025.

I am pleased to note that the year has started strong, with a significant increase of almost 20% in order intake during January. At the same time, we have seen increased sales volumes of used cars. More stable inflation forecasts, combined with lower policy rates and announced interest rate trajectories, are increasing our customers’ purchasing power, which we hope to convert into higher sales volumes in the coming year.”

The Group in summary

October – December 2024

• Net sales increased by 0,2% to SEK 24,016 million (23,975). Adjusted for acquisitions and exchange rate changes, net sales decreased by 2% for comparable units.
• Operational earnings decreased to SEK 227 million (259).
• Operating profit amounted to SEK 64 million (54).
• Profit for the period amounted to SEK -269 million (-77).

January – December 2024

• Net sales increased by 13% to SEK 92,300 million (81,678). Adjusted for acquisitions and exchange rate changes, net sales decreased by 3% for comparable units.
• Operational earnings decreased to SEK 614 million (1,535).
• Operating profit amounted to SEK -55 million (1,353).
• Profit for the period amounted to SEK -1,157 million (551).

The Year-End 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