Bilia (BILI) Q3 2024 earnings summary

Executive summary

• Net turnover increased organically by 3% in Q3 2024, reaching SEK 8,984 M, driven by strong Service Business growth and higher used car deliveries, while Car Business earnings, especially in new cars, declined.

• Service Business contributed 74% of operational earnings, delivering one of the best Q3 results ever, with robust activity in Sweden and Western Europe.

• Operational earnings for Q3 were SEK 281 M with a margin of 3.1%, while net profit was SEK 105 M, down from SEK 169 M last year.

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

• Earnings improved in Norway, while Sweden saw lower earnings due to weaker Car Business performance.

Financial highlights

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

• Service Business contributed SEK 221 M, 74% of group earnings, up SEK 60 M year-over-year.

• Operating cash flow in Q3 was SEK 480 M; SEK 1,303 M for the first nine months, up from SEK 500 M last year.

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

• Equity/assets ratio at 23% (24% last year); return on equity (R12): 15.1%.

Outlook and guidance

• Continued strong demand expected in Service and used car businesses for Q4, with stable used car prices except for full electric vehicles.

• Cautious optimism for new car sales in Q4 and Q1 2025, supported by increased manufacturer campaigns and lower interest rates.

• Ongoing focus on profitability, process optimization, and customer satisfaction.

• Expansion of Service Business through organic growth and acquisitions.