Hedin Mobility (HEDIN) Q3 2024 earnings summary

Executive summary

• Net sales for January–September 2024 rose 18% year-over-year to MSEK 68,284, but adjusted for acquisitions and currency, comparable unit sales fell 3%.

• Operational earnings dropped to MSEK 387 from MSEK 1,276 year-over-year, with a margin of 0.6% (2.2%).

• Operating profit turned negative at MSEK -37 versus MSEK 1,554 last year, and net loss for the period was MSEK -822 compared to a profit of MSEK 830.

• Cost reduction program initiated, targeting SEK 1 billion in annual savings by 2025, with early positive effects.

• Order intake has increased since September, supported by interest rate cuts and lower inflation expectations.

Financial highlights

• Q3 2024 net sales increased 6% to MSEK 21,482, but comparable unit sales declined 8%.

• Q3 operational earnings fell to MSEK 152 (491), with a margin of 0.7% (2.4%).

• Q3 operating profit was MSEK 171 (637), and net loss for the quarter was MSEK -104 (278).

• Cash flow from operating activities for Jan–Sep was MSEK 1,832 (2,084).

• Available liquidity at period end was MSEK 1,933.

Outlook and guidance

• Management expects gradual improvement in demand and margins, supported by cost savings and interest rate cuts.

• Full impact of cost reduction program expected by 2025.

• Market stabilisation observed during summer, with better margins anticipated going forward.