Bilia (BILI) Q4 2024 earnings summary

Executive summary

• Net turnover for Q4 2024 increased by 1% to SEK 10,228 M, with operational earnings of SEK 420 M and a margin of 4.1%, driven by strong Service Business performance and improved efficiency.

• Service Business showed robust growth and resilience, contributing 81% of group earnings and achieving significant improvement in Norway and stable results in Western Europe.

• New car sales to private consumers remained subdued, but fleet and used car demand were stable except for fully electric vehicles.

• Full-year operational earnings declined to SEK 1,444 M, mainly due to lower new car sales, with net profit for Q4 at SEK 195 M and for the year at SEK 662 M.

• Board proposes a dividend of SEK 5.60 per share, distributed in four instalments.

Financial highlights

• Q4 operational margin stable at 4.1%; full year margin decreased to 3.7% from 4.2%.

• Service Business organic growth: 7% for Q4, 17% in Norway; Q4 profit SEK 374 M, margin 13.6%.

• Used car deliveries up 9% year-over-year; profitability at SEK 54 M, down from SEK 71 M but historically strong.

• Operating cash flow improved to SEK 290 M in Q4 and SEK 1,592 M for the year, up from SEK 600 M last year.

• Net debt/EBITDA (excl. IFRS 16) at 1.7x, below the target of 2.0x.

Outlook and guidance

• Service Business expected to maintain stable demand and strong booking levels.

• Used car prices expected to remain stable, except for fully electric vehicles, where prices are declining.

• New car order intake improved 20% year-over-year, with campaigns and lower interest rates expected to boost private demand.

• New car sales outlook cautiously optimistic; competitive market and discounting likely to continue in 2025.

• Focus remains on improving profitability and efficiency, especially in new acquisitions and existing operations.