Bilia (BILI) Q3 2024 earnings summary

Executive summary

• Net turnover increased organically by 3% in Q3 2024, driven by higher used car deliveries and strong Service Business growth, with Service Business contributing 74% of operational earnings and stable demand in Sweden and Western Europe.

• Operating profit for Q3 was SEK 216 million, with operational earnings at SEK 281 million and a margin of 3.1%; net profit was SEK 105 million.

• Used car demand and prices remained stable in Sweden and Norway, except for fully electric vehicles, while new car demand from private consumers showed slight improvement.

• Earnings improved in Norway, especially for BMW and XPENG, while Sweden saw lower earnings due to weaker Car Business performance.

• Order intake for new cars increased 11% year-over-year, with a growing backlog.

Financial highlights

• Q3 operational margin was 3.1% (3.8% last year); operating margin was 2.4% (3.3%).

• Operating cash flow in Q3 was SEK 480 million; SEK 1.3 billion for the first nine months, up from SEK 500 million last year.

• Net debt at Q3 end was SEK 7,504 million, with net debt/EBITDA (excl. IFRS 16) at 1.5x, below the 2.0x target.

• Dividend of SEK 6.60 per share decided for 2024, with SEK 506 million paid YTD.

• Payments for acquisitions totaled SEK 400 million for the first nine months.

Outlook and guidance

• Service Business expected to maintain strong demand and profitability in Q4 2024.

• Used car activity and prices to remain stable, with uncertainty around fully electric vehicle prices.

• New car sales outlook is cautiously optimistic for Q4 and Q1 2025, supported by pent-up demand and more campaigns.

• Management focus remains on profitability, process optimization, and customer satisfaction.

• Fleet customer order intake to remain stable; focus on improving profitability and efficiency across operations.