Hedin Mobility (HEDIN) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 rose 13% year-over-year to SEK 92,300 million, but adjusted for acquisitions and currency, sales declined 3% for comparable units due to weaker demand, especially for electric vehicles.

• Operational earnings dropped to SEK 614 million from SEK 1,535 million, and the group posted its first annual net loss of SEK -1,157 million, mainly due to falling used EV prices and repurchase losses.

• A cost-saving program was initiated, targeting SEK 1 billion in annual savings, with most impact expected in 2025.

• The aftermarket and distribution businesses showed resilience, with aftermarket operating profit at SEK 860 million and distribution profit at SEK 420 million.

Financial highlights

• Full-year operating profit was SEK -55 million, down from SEK 1,353 million the previous year.

• Operating margin fell to -0.1% from 1.7% year-over-year.

• Cash flow from operating activities was SEK 2,026 million, down from SEK 5,095 million.

• Equity ratio decreased to 14% from 15%.

• Net financial items (excluding associates) were SEK -1,398 million, with higher interest expenses due to increased borrowing.

Outlook and guidance

• Order intake increased by nearly 20% in January 2025, with higher used car sales and improved market sentiment due to lower inflation and interest rates.

• The cost-saving and business transformation programs are expected to yield significant improvements in 2025.