Bilia (BILI) Q2 2024 earnings summary

Executive summary

• Net turnover for Q2 2024 rose 8% year-over-year to SEK 10,568 M, driven by higher used car deliveries and strong Service Business growth, with Norway showing significant improvement and Sweden lagging due to weaker Car Business.

• Operational earnings for Q2 were SEK 410 M with a margin of 3.9%, down from SEK 444 M last year, mainly due to weaker Car Business in Sweden.

• Net profit for Q2 was SEK 206 M, compared to SEK 262 M last year; EPS was SEK 2.24 versus SEK 2.85.

• Operating cash flow for Q2 was SEK 423 M, with a six-month total of SEK 823 M, up from SEK 200 M last year.

Financial highlights

• Q2 operating profit was SEK 343 M (SEK 394 M last year); operating margin declined to 3.3% from 4.0%.

• Service Business operational earnings reached SEK 292 M, up from SEK 275 M last year, contributing 64% of group total.

• Car Business operational earnings were SEK 155 M, down from SEK 198 M last year.

• Used car business result was SEK 90 M, compared to SEK 101 M last year.

• Payments for acquisitions totaled SEK 159 M during the quarter.

Outlook and guidance

• Service Business demand expected to remain stable in Q3 2024, with good booking times and continued growth across all countries.

• Used car activity and prices anticipated to stay at good levels in coming quarters, with gradual improvement in the private market and stable fleet demand.

• Cautious optimism for new car sales in Q4 2024, supported by expected lower interest rates, increased manufacturer campaigns, and a stronger economy.

• Continued focus on improving profitability and customer satisfaction, especially in newly acquired businesses.