Hedin Mobility Group reported a loss of Skr231m ($21.74m) for the first quarter of 2024, a significant decrease from the profit of Skr392m in the same period last year.
Despite the loss, net sales increased by 32% to Skr23.58bn compared to Skr17.83bn in the first quarter of 2023. The retail sector experienced a 37% surge in net sales to Skr21.68bn, while the distribution segment saw a 22% decline to Skr2.99bn.
However, operational earnings dropped to Skr95m and the operating margin decreased from 2.1% to 0.4%.
CEO Anders Hedin mentioned that the automotive market has been cautious, with a decrease in order intake due to rising interest rates. The demand for electric vehicles (EVs) has also declined following the reduction or elimination of subsidies in several European countries.
These factors have impacted the market value of used EVs and vehicles sold with repurchase commitments, affecting margins in the used vehicle market.
Despite the challenges, Hedin Mobility’s cash flow from operating activities was Skr764m, with investments in fixed assets reaching Skr476m. The company’s available funds totaled Skr3.44bn.
Hedin Mobility operates across 12 countries, with over 330 facilities representing more than 40 vehicle brands and employing 11,212 individuals. In 2024, all operations will be unified under the brand name Hedin Automotive.
Hedin expressed optimism for the future, anticipating a decrease in interest rates and a positive sales trend in the second half of the year.
