Hedin Mobility (HEDIN) Q2 2024 earnings summary

Executive summary

• Net sales rose 25% year-over-year to MSEK 46,803 for the first half of 2024, but adjusted for acquisitions and currency, comparable unit sales fell 1%.

• Operational earnings dropped to MSEK 234 from MSEK 785, with a margin of 0.5% versus 2.1% last year.

• Operating profit turned negative at MSEK -208, down from MSEK 917, mainly due to write-downs and non-recurring items.

• Net loss for the period was MSEK -718, compared to a profit of MSEK 552 in the prior year.

• A cost-saving program is underway, targeting annual savings of SEK 1 billion by 2025.

Financial highlights

• Q2 net sales increased 18% to MSEK 23,218, but comparable unit sales declined 2%.

• Q2 operational earnings fell to MSEK 62 from MSEK 402, with a margin of 0.3%.

• Q2 operating profit was MSEK -214, down from MSEK 326.

• Cash flow from operating activities for H1 was MSEK 1,168, down from MSEK 3,194.

• Available liquidity at period end was MSEK 2,462.

Outlook and guidance

• Management expects cost savings to materialize in H2 2024, with full impact in 2025.

• Market stabilization is anticipated, with improved margins and a lower cost base going forward.

• Focus is shifting to organic growth and consolidation after a period of rapid expansion.