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Bilia — Earnings Release 2022
Jul 22, 2022
2892_ir_2022-07-22_43b2a533-80ef-4659-9d5e-bf8f0e3eafd3.pdf
Earnings Release
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Second quarter 2022
Strong result despite the continued shortage of cars
Second quarter 2022
- Net turnover amounted to SEK 8,945 M (9,402), a decrease of 5 per cent.
- Operational earnings amounted to SEK 498 M (574).
- The lower result was mainly attributable to the Car Business in Norway. Otherwise strong results for both the Service Business and the Car Business despite a shortage of cars.
- Operating profit amounted to SEK 521 M (541) and was positively affected by profit from divestment of operations of SEK 55 M.
- Net profit for the period amounted to SEK 385 M (406) and earnings per share to SEK 4.15 (4.10).
- Operating cash flow amounted to SEK 246 M (986).
First six months 2022
- Net turnover amounted to SEK 17,629 M (18,746), a decrease of 6 per cent.
- Operational earnings amounted to SEK 998 M (1,102).
- Profit for the period amounted to SEK 979 M (783) and earnings per share to SEK 10.40 (7.95).
- Operating cash flow amounted to SEK 594 M (885).
Events after the balance sheet date
• On 1 July, three Volvo facilities in Oslo that conduct sales of new and used cars and servicing were divested.
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Net turnover | 8,945 | 9,402 | 17,629 | 18,746 | 34,392 | 35,509 |
| Operational earnings 1) | 498 | 574 | 998 | 1,102 | 2,038 | 2,142 |
| Operational margin, % | 5.6 | 6.1 | 5.7 | 5.9 | 5.9 | 6.0 |
| Operating profit | 521 | 541 | 1,205 | 1,045 | 2,085 | 1,925 |
| Operating margin, % | 5.8 | 5.8 | 6.8 | 5.6 | 6.1 | 5.4 |
| Profit before tax | 491 | 516 | 1,173 | 996 | 2,007 | 1,830 |
| Net profit for the period | 385 | 406 | 979 | 783 | 1,653 | 1,457 |
| Earnings per share, SEK 2) | 4.15 | 4.10 | 10.40 | 7.95 | 17.35 | 14.90 |
1) For reconciliation of operational earnings with operating profit, see Note 3.
2) The number of shares used in the calculation is shown in the Consolidated Statement of Income and Other Comprehensive Income.
Strong result and continued high order backlog for new cars
Strong result for the second quarter
We are able to present a strong result, despite the shortage of new cars. During the quarter, adjusted for acquired and divested operations, we delivered 22 per cent fewer cars compared to last year.
Operational earnings amounted to SEK 498 M, with a margin of 5.6 per cent. We are proud of the Service Business's continued strong result, which amounted to SEK 286 M. Sales of used cars also remained strong at SEK 120 M. The order backlog for new cars was once again the highest ever at 29,023 cars, which is more than twice as many cars as a year ago.
Earnings per share amounted to SEK 4.15 and were boosted by gains of SEK 44 M after tax from sales of operations during the quarter.
Acquisitions, new targets and a new operational area
During the quarter, we continued to expand our operation and so far this year we have acquired five companies, of which three in May and June.
We have signed an agreement to acquire 50.1 per cent of Norwegian company Bil1Din Holding AS, which conducts car dismantling operations in Trøndelag. Bilia is the first player in Norway to take responsibility for sustainability throughout the car's entire life cycle, including the use of used parts in our Service Business. This gives us synergies both in terms of profitability and from a sustainability perspective.
We are welcoming a further two car brands to the Bilia family in Norway through the acquisition of AS Insignia, which conducts sales and servicing for Jaguar and Land Rover in Oslo. We have signed an agreement to acquire M Bilar Group, which conducts sales and servicing for BMW and MINI at five facilities located in Västerås, Eskilstuna,
Borlänge, Örebro and Mora. The acquisition brings Bilia further facilities in geographically attractive areas, from which we will offer customers high-quality service.
A capital markets day was held during the second quarter where we presented our sustainability targets, updated our financial targets and introduced our new operational area, Mobility Care. We want to increase the proportion of women working at Bilia, which is why one of our four sustainability targets is for the percentage of women in our sales operations to exceed 30 per cent. Mobility Care currently covers wheels, wheel storage and rim repair, spare parts recycling, car glass and damage centres, as well as sales of used cars of all brands via Bilia Outlet. At Mobility Care we offer to service and repair our customers' cars – regardless of brand – so that they do not have to buy a new car. We are proud of our circular business model and will continue to integrate sustainability into our business going forward.
Uncertainty in the world
The war in Ukraine is continuing and causing humanitarian losses. Rising inflation, higher fuel prices and interest rates are contributing to increased concern about the economic development. Production disruptions at car manufacturers have led to significantly fewer delivered cars during the quarter. Now we get indications of a gradually improving supplier situation, which together with our high order backlog is positive for the second half of the year.
We are constantly reviewing our operations in order to respond to these challenges and be able to offer our customers sustainable, attractive and innovative overall solutions.
Per Avander Managing Director and CEO
Group results
Net turnover and earnings
Second quarter 2022
Net turnover amounted to SEK 8,945 M (9,402). Adjusted for acquired and divested operations and for exchange rate fluctuations, net turnover decreased by 9 per cent. Exchange rate fluctuations had a positive impact of approximately SEK 140 M on net turnover for the period compared to last year.
Operating profit amounted to SEK 521 M (541). Operating profit for the quarter included gains from sales of operations in Sweden of SEK 55 M.
Operational earnings amounted to SEK 498 M (574), and the operational margin was 5.6 per cent (6.1). The lower result was mainly attributable to the Car Business in Norway. The Service Business reported a result of SEK 286 M, which was SEK 40 M lower than last year, mainly attributable to Sweden and Norway. The Car Business reported a result of SEK 239 M, which was SEK 41 M lower than last year, mainly attributable to sales of used cars. The Fuel Business reported a result of SEK 5 M.
The Group's underlying overheads increased by 5 per cent on last year. Overheads amounted to 12.6 per cent of net turnover, which was 1.7 percentage points higher than last year.
The operation in Sweden reported a result of SEK 352 M (358). The margin was 6.7 per cent (6.8). The operation in Norway reported a result of SEK 140 M (236). The margin was 4.8 per cent (7.7). The operation in Western Europe reported a result of SEK 38 M (21). The margin was 5.2 per cent (1.9). In Sweden, the result for the Service Business was slightly lower, while the Car Business reported a higher result. For Norway the lower result was mainly attributable to the Car Business. For Western Europe, the higher result was mainly attributable to the divestment of operations that had previously reported losses.
Net profit for the period amounted to SEK 385 M (406). Earnings per share amounted to SEK 4.15 (4.10). Exchange rate fluctuations did not have a material impact on net profit for the period compared to last year.
The number of employees decreased by 20 during the quarter and amounted to 4,992.
Updated financial targets
- Total yearly growth higher than 5 per cent during a business cycle.
- Operating margin of 5 per cent during a business cycle.
- Net debt in relation to EBITDA, excluding IFRS 16, over time max 2.0 times.
- Dividend share of at least 50 per cent of earnings per share.
Operating result for the Parent Company during the quarter amounted to SEK –34 M (–40). Profit for the year was positively affected by approximately SEK 5 M due to the revaluation of endowment policies for pensions compared with last year.
First six months 2022
Net turnover amounted to SEK 17,629 M (18,746). Adjusted for acquired and divested operations and for exchange rate fluctuations, net turnover decreased by 13 per cent. Exchange rate fluctuations had a positive impact of approximately SEK 320 M on net turnover for the period compared to last year.
Operating profit amounted to SEK 1,205 M (1,045). Operating profit for the first six months of 2022 included gains from sales of operations in Sweden of SEK 277 M.
Operational earnings amounted to SEK 998 M (1,102), and the operational margin was 5.7 per cent (5.9). The Service Business reported a result of SEK 601 M, which was SEK 44 M lower than last year. The Car Business reported a result of SEK 428 M, which was SEK 77 M lower than last year. The Fuel Business reported a result that was on a par with last year.
0 120 240 360 480 600 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Operational earnings SEK M Operational earnings and margin Margin %, R12 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5
The Group's underlying overheads increased by 3 per cent on last year. Overheads amounted to 12.4 per cent of net turnover, which was 2.1 percentage points higher than last year.
The operation in Sweden reported a result of SEK 685 M (693), which was on a par with last year. The margin was 6.5 per cent (6.5). The operation in Norway reported a result of SEK 291 M (442). The margin was 5.3 per cent (7.4). The operation in Western Europe reported a result of SEK 73 M (36). The margin was 4.9 per cent (1.7). In Sweden, the result for the Car Business was slightly higher, while the Service Business reported a slightly lower result. For Norway the lower result was mainly attributable to the Car Business. For Western Europe, the higher result was mainly attributable to the divestment of operations that had previously reported losses.
Profit before tax amounted to SEK 1,173 M (996) and was positively affected, not only by a gain from sales of operations but also by SEK 30 M attributable to a higher profit than usual from shares in associated companies, Volvofinans Bank.
Net profit for the period amounted to SEK 979 M (783). Earnings per share amounted to SEK 10.40 (7.95). Exchange rate fluctuations did not have a material impact on net profit for the period compared to last year. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna.
The number of employees decreased by 339 during the half-year and amounted to 4,992. The decrease was attributable to divested operations. vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Affärsmodell och strategi
The operating loss for the Parent Company in the first six months of the year amounted to SEK –52 M (–69). The result was positively affected by approximately SEK 10 M due to the revaluation of endowment policies for pensions compared with last year. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna.
BUSINESS AREAS
Service
Telefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter och vindrutebyten. försäljning och verkstadstjänster. Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Uthyrning och Flexlease Car purchase Financing, insurance, the Bilia-card, service subscriptions, tyre hotels, paint shops, accessory and tyre and wheel sales. Kundservice Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation Däckcenter Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig Stationer Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, Hyrbilar Uthyrning och Flexlease Store Accessories, spare parts and e-commerce. Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och Stations Fuels and car washes. Tyre centres Tyre hotels, wheel change, tyre and wheel sales and workshop services. Rim repair Renovation of rims. Bilköp serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- Servicecenter Originalservice, personlig servicetekniker och reparationer Service Original service, personal service technicians and repairs. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Originalservice, personlig servicetekniker och reparationer Car glass Glass treatment, glass repair and windscreen replacement. Tillbehör, reservdelar och e-handel. Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Car care Reconditioning and AC-cleaning. Butik Tillbehör, reservdelar och e-handel. Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Bilköp serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Damage Roadside assistance, body shop, paint shop and dent removal. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Bilköp serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Rental cars Rentals and Flexlease. Kundservice Telefon & online. Butik Tillbehör, reservdelar & e-handel. Glascenter Glasbehandling, glasreparation & vindrutebyten. Däckcenter Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker & reparationer Drivmedel & biltvätt. Skadecenter Vägassistans, plåtverkstad, lackverkstad & buckelborttagning Hyrbilar Uthyrning & Flexlease • Service centres • Damage centres • Spare parts • Stores and e-commerce • Tyre centres • Tyre hotels • Rim repair • Glass centres • Car dismantling • Sales of new and used cars • Financing and insurance • Sales of accessories • Car rental • Fuel sales • Car washes
Car
Servicecenter Originalservice, personlig We offer services for everything related to car ownership during the car's entire life cycle, from the purchase of a new car to recycling parts from a dismantled car.
Däckcenter Däckhotell, däckbyte, däck-
Däckhotell, däckbyte, däck-
Fuel
Telefon och online. Kundservice Telefon och online. Kundservice Telefon och online. Bildemontering & bildelar Car dismantling Dismantling, reuse and sales of used car parts.
THE GROUP
Net turnover by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 5,274 | 5,255 | 10,606 | 10,671 | 20,477 | 20,542 |
| Norway | 2,922 | 3,047 | 5,525 | 5,963 | 10,812 | 11,250 |
| Western Europe | 739 | 1,093 | 1,480 | 2,098 | 3,071 | 3,689 |
| Parent Company, other | 10 | 7 | 18 | 14 | 32 | 28 |
| Total | 8,945 | 9,402 | 17,629 | 18,746 | 34,392 | 35,509 |
Operational earnings by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 352 | 358 | 685 | 693 | 1,410 | 1,418 |
| Norway | 140 | 236 | 291 | 442 | 606 | 757 |
| Western Europe | 38 | 21 | 73 | 36 | 116 | 79 |
| Parent Company, other | –32 | –41 | -51 | –69 | –94 | –112 |
| Total | 498 | 574 | 998 | 1,102 | 2,038 | 2,142 |
Operational margin by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| Per cent | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 6.7 | 6.8 | 6.5 | 6.5 | 6.9 | 6.9 |
| Norway | 4.8 | 7.7 | 5.3 | 7.4 | 5.6 | 6.7 |
| Western Europe | 5.2 | 1.9 | 4.9 | 1.7 | 3.8 | 2.1 |
| Total | 5.6 | 6.1 | 5.7 | 5.9 | 5.9 | 6.0 |
A better experience
At Bilia we strive for continuous development, to be a little better each day, whatever our title or position. Working in a goal-conscious way founded on our vision, core values and customer promise creates a positive spiral, enabling us to exceed expectations and provide a better experience for customers and colleagues alike.
Net financial items and tax
Net financial items for the quarter amounted to SEK –30 M (–25). Tax for the quarter amounted to SEK –106 M (–110), and the effective tax rate was 22 per cent (21).
Operating cash flow
Operating cash flow for the quarter amounted to SEK 246 M (986). After acquisitions and divestments of operations and changes in financial assets, cash flow for the quarter amounted to SEK 256 M (310). Cash flow for the year has been boosted by SEK 541 M relating to divestments of operations in Sweden and Germany. Acquisitions affected cash flow by SEK 110 M during the year.
Financial position
The balance sheet total decreased by SEK 565 M during the year and amounted to SEK 16,635 M. The decrease was mainly attributable to lease vehicles and right-of-use assets.
Equity decreased by SEK 244 M during the year, amounting to SEK 4,173 M. A dividend to the shareholders of SEK 740 M was decided on during the second quarter, of which SEK 188 M has been paid out. During the quarter, 1,963,167 shares were bought back for a total purchase price of SEK 280 M. During the quarter, 6,500,000 of the company's repurchased shares were withdrawn. The total holding of own shares as of 30 June 2022 was 4,315,709 shares.
The equity/assets ratio amounted to 25 per cent (24). Net debt decreased by SEK 341 M during the year and amounted to SEK 3,911 M. Excluding lease liabilities attributable to IFRS 16, net debt amounted to SEK 421 M, a decrease of SEK 161 M since December 2021. The ratio of net debt to EBITDA excluding IFRS 16 amounted to 0.2 times compared with 0.2 times at year-end. Liquidity remained good, and at the end of the period a bank balance of SEK 510 M (845) was reported from the banks (Nordea and DNB). Bilia's combined credit limit with Nordea and DNB amounts to SEK 1,500 M.
Investments excluding right-of-use assets
Acquisitions of non-current assets during the quarter amounted to SEK 182 M (62) excluding lease vehicles and SEK 405 M (381) including lease vehicles. Broken down by geographical market, the investments amounted to SEK 238 M (335) in Sweden, SEK 137 M (20) in Norway, SEK 15 M (11) in Western Europe and SEK 15 M (15) for the Parent Company and other central operations.
Net debt and net debt/EBITDA
Notable events
Events during the second quarter
- On 7 April the AGM resolved in favour of a dividend of SEK 8 per share divided into four quarterly payments and cancellation of 6,500,000 own shares repurchased by the company. The cancellation of the own shares was registered on 3 May.
- On 8 April Board of Directors of Bilia AB decided to start a repurchase program of a maximum of 1,100,000 own shares at a total amount not exceeding SEK 185 M. This repurchase program was a continuation of the repurchase program that was decided on 19 January 2022 based on the authorisation received from the AGM 2021. The previous repurchase program comprised a maximum of 3,000,000 shares, of which about 1,900,000 shares had been repurchased. The repurchase program was carried out in accordance with the Market Abuse Regulation and the Commission Delegated Regulation "the Safe Harbour Regulation" and was completed on 30 May.
- On 13 April Bilia announced that together with Porsche Sweden, the next step in the expansion of the collaboration is being prepared by planning for a new facility for sales and service of Porsche in Kristianstad. The new Porsche Center Kristianstad will increase Bilia's presence in the region and enable even better service for new and existing Porsche customers.
- On 27 April Bilia reached an agreement to acquire Kokstad Autosenter AS, which conducts sales of used cars and a brand-independent service workshop. Operations are conducted in two facilities in Bergen, Norway. The acquired business reported for 2021 a turnover of about NOK 110 M with an operating margin of 3 per cent. The operation's capital employed plus agreed surplus values amount to NOK 16 M, with the possibility of additional purchase price of a maximum of NOK 12 M in 2027.
- On 1 May Bilia sold five facilities in Bergslagen, Sweden to Bilkompaniet i Dalarna AB. These facilities conducts sales of new cars, used cars and service operations for Volvo and Renault. The divested operation has reported a turnover of approximately SEK 500 M and an operating profit of approximately SEK 30 M in the last two years.
- On 5 May Bilia reached an agreement to acquire 50.1 percent of Bil1Din Holding AS, which conducts
dismantling operations in Norway. The acquired business reported for 2021 a turnover of approximately NOK 55 M with an operating margin of 2 percent. The purchase price amounts to NOK 30 M for 50.1 per cent of the shares in the company. Bilia has committed to buy an additional 39.9 per cent of the shares until the year 2032.
- On 10 May, Bilia presented updated financial targets and sustainability targets in connection with a Capital Markets Day. The financial targets are presented on page 3 and the sustainability targets on page 15 in this report.
- On 10 May Board of Directors of Bilia AB decided to start a repurchase program of a maximum of 800,000 own shares at a total amount not exceeding SEK 100 M. This repurchase program was a continuation of the repurchase program that was decided on 8 April 2022 based on the authorisation received from the AGM 2021. The program was launched on 31 May when the ongoing the repurchase program of a maximum of 1,100,000 shares was completed. The new program was completed on the 30 June and the total number of repurchased own shares then amounted to 4,315,709.
- On 13 May Bilia reached an agreement to acquire AS Insignia, which conducts sales and service operations for the car brands Jaguar, Land Rover and Morgan in Oslo, Norway. The acquired business reported for 2021 a turnover of approximately NOK 450 M and an operating loss of NOK 5 M.
- On 1 June Bilia sold a facility in Stenungsund, Sweden to Stendahls Bil AB. The facility conducts sales of new cars, used cars and service operations for Volvo and Renault. The divested operation has reported a turnover of approximately SEK 80 M and an operating profit of approximately SEK 7 M in the last two years.
- On 16 June Bilia reached an agreement to acquire M Bilar Group AB, which conducts sales and service operations for the car brands BMW and MINI in Västerås, Eskilstuna, Borlänge and Mora. The acquired business reported for 2021 a turnover of approximately SEK 1.3 Bn and an average operating margin for the past three years of 4.5 percent. The deal is expected to take place on 1 November 2022 and the agreement is conditional on due diligence of the business and approval from the Swedish Competition Authority.
Events during the first quarter
- On 19 January the Board of Directors of Bilia AB decided to recall the current share repurchase program of a maximum of 4,000,000 own shares in which 918,635 own shares had been repurchased, and start a new repurchase program of a maximum of 3,000,000 own shares at a total amount not exceeding SEK 500 M. The repurchase program was carried out in accordance with the Market Abuse Regulation and the Commission Delegated Regulation "the Safe Harbour Regulation".
- On 1 February Bilia sold four facilities in Skaraborg, Sweden to Bröderna Brandt Personbilar AB. These facilities conduct sales of new cars, used cars and service operations for Volvo and Renault. The divested operation has reported a turnover of approximately SEK 1 Bn and operational earnings of approximately SEK 70 M over the past two years.
- On 1 February Bilia sold the remaining four BMW/MINI facilities in Germany to Autohaus Krah + Enders GmbH & Co. KG, a BMW dealer in Germany. The business being disposed of in Germany has reported turnover in the region of SEK 800 M and an operational loss of approximately SEK 30 M yearly for the past two years.
- On 10 February Bilia signed an agreement with XPENG regarding sale of new cars and service operations for XPENG cars in Sweden. The cooperation with XPENG regarding sale of new cars will be conducted in the form of an agency agreement.
- On 15 March Bilia announced that the collaboration with the French car brand Alpine is expanded by offering sales and service at two more Bilia facilities. Alpine aims to become a leader among electric sports cars and by 2026 expects to be able to offer a complete model program of three fully electric sports cars.
- On 16 March Bilia reached an agreement to acquire LB's Lastbilar AB, a company who conducts repair and service of Mercedes transport vehicles and trucks. The operation is conducted in its own property in Norrköping. Bilia took over the operation on 1 April 2022. The acquired business reported for 2021 a turnover of about SEK 40 M.
Events after the balance sheet date
- On 1 July Bilia sold three facilities in Oslo to Volvo Car Stor-Oslo AS. These facilities conduct sales of new cars, used cars and servicing for Volvo. The divested operation has reported turnover around NOK 1.9 Bn and an operational loss of approximately NOK 175 M for the past two years.
- No other significant events have occurred since the end of the reporting period.
Further information about the above-mentioned events along with other press information is available at bilia.com.
Stable result despite shortage of new cars
Second quarter 2022
- Turnover amounted to SEK 2,033 M (1,911), an increase of 6 per cent.
- Operational earnings amounted to SEK 286 M (326).
- The margin was 14.1 per cent (17.1).
First six months 2022
- Turnover amounted to SEK 4,089 M (3,791), an increase of 8 per cent.
- Operational earnings amounted to SEK 601 M (645).
- The margin was 14.7 per cent (17.0).
Turnover and earnings
Second quarter 2022
During the quarter, turnover for the Service Business increased by 6 per cent compared with last year, primarily due to acquired operations. Organic turnover increased by 1 per cent and was primarily adversely affected by a lower number of delivered new cars and fewer services for Polestar cars in Norway. Six Volvo/Renault facilities in Sweden were divested during the quarter. There was one less working day during the quarter in Sweden and Luxembourg and the same number of working days in the other countries.
Growth in the Service Business
| Second quarter | First six months | |||||||
|---|---|---|---|---|---|---|---|---|
| Western | Western | |||||||
| Per cent | Sweden | Norway | Europe | Total | Sweden | Norway | Europe | Total |
| Reported growth | 10.4 | 3.8 | –19.9 | 6.3 | 12.5 | 3.7 | –17.3 | 7.8 |
| Underlying growth | 1.4 | –4.9 | 3.5 | –0.4 | 1.1 | –9.2 | 4.1 | –1.7 |
| Calendar effect | 1.6 | 0.0 | 0.5 | 1.1 | 0.0 | –0.8 | –0.5 | –0.3 |
| Organic growth | 3.0 | –4.9 | 4.0 | 0.7 | 1.1 | –10.0 | 3.6 | –2.0 |
At the end of the quarter, the number of service subscriptions amounted to 116,000 (125,000 at the end of 2021) compared with our long-term target of 130,000. The number of wheels stored on behalf of our customers amounted to 380,000 (406,000 at the end of 2021) compared with our long-term target of 600,000. The decrease was attributed to divested operations in Sweden and Germany.
Operational earnings during the quarter were SEK 40 M lower than last year.
In Sweden, operational earnings amounted to SEK 199 M (216), which was negatively affected by a lower number of new cars delivered and divested operations. In Norway operational earnings amounted to SEK 72 M (92), a change explained mainly by a lower number of new cars delivered and fewer services for Polestar cars. In Western Europe, operational earnings amounted to SEK 15 M (18).
SERVICE BUSINESS
Turnover
Operational earnings and margin
Turnover by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 1,346 | 1,218 | 2,727 | 2,423 | 5,391 | 5,087 |
| Norway | 579 | 558 | 1,137 | 1,096 | 2,209 | 2,168 |
| Western Europe | 108 | 135 | 225 | 272 | 510 | 557 |
| Total | 2,033 | 1,911 | 4,089 | 3,791 | 8,110 | 7,812 |
Operational earnings by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 199 | 216 | 423 | 432 | 906 | 915 |
| Norway | 72 | 92 | 145 | 185 | 270 | 310 |
| Western Europe | 15 | 18 | 33 | 28 | 59 | 54 |
| Total | 286 | 326 | 601 | 645 | 1,235 | 1,279 |
Margin by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| Per cent | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 14.8 | 17.7 | 15.5 | 17.8 | 16.8 | 18.0 |
| Norway | 12.3 | 16.5 | 12.7 | 16.9 | 12.2 | 14.3 |
| Western Europe | 14.3 | 13.3 | 14.6 | 10.3 | 11.6 | 9.7 |
| Total | 14.1 | 17.1 | 14.7 | 17.0 | 15.2 | 16.4 |
Highest order backlog ever for new cars
Second quarter 2022
- Turnover amounted to SEK 6,993 M (7,643) , a decrease of 9 per cent.
- Operational earnings amounted to SEK 239 M (280).
- The margin was 3.4 per cent (3.7).
First six months 2022
- Turnover amounted to SEK 13,789 M (15,341) , a decrease of 10 per cent.
- Operational earnings amounted to SEK 428 M (505).
- The margin was 3.1 per cent (3.3).
Turnover and earnings
Second quarter 2022
The Car Business's deliveries of new and used cars, adjusted for acquired and divested operations, were 22 per cent lower during the quarter compared with last year. The lower deliveries were attributable to all our countries of operation and can be explained by production disruptions among car manufacturers due to a shortage of components.
The order intake of new cars for the Group was 7 per cent lower than last year adjusted for acquired and divested operations. The order intake has declined towards the end of the quarter. The order backlog amounted to 29,023 cars, which was once again the highest ever and more than twice as many cars as in the previous year. Adjusted for acquired and divested operations, the order backlog was around 14,000 cars higher than last year. The increase is mainly explained by fewer incoming cars from car manufacturers, related to production disruptions caused by a shortage of components. In connection with the divestment of three Volvo facilities in Norway on 1 July, the order backlog will decrease by approximately 900 cars.
New cars by geographic market
| Deliveries | Order backlog | |||||||
|---|---|---|---|---|---|---|---|---|
| Second quarter | First six months | |||||||
| Number of | 2022 | 2021 | 2022 | 2021 | July 21– June 22 |
Full year 2021 |
30 June 2022 |
30 June 2021 |
| Sweden 1) | 6,809 | 7,326 | 14,550 | 15,782 | 28,006 | 29,238 | 16,194 | 6,259 |
| Norway 2) | 2,546 | 3,376 | 4,613 | 6,924 | 10,466 | 12,777 | 9,460 | 5,179 |
| Western Europe 3) | 968 | 1,816 | 2,042 | 3,530 | 4,281 | 5,769 | 3,369 | 2,057 |
| Total | 10,323 | 12,518 | 21,205 | 26,236 | 42,753 | 47,784 | 29,023 | 13,495 |
1) Acquired operations are included in deliveries during the quarter with 944 (—), during the first six months with 1,833 (—) and with 2,186 (—) in order backlog. Divested operations are included in deliveries during the quarter with — (338), during the first six months with — (637) and with — (491) in order backlog.
2) Acquired operations are included in deliveries during the quarter with 94 (—), during the first six months with 244 (—) and with 127 (—) in order backlog.
3) Divested operations are included in deliveries during the quarter with — (275), during the first six months with — (533) and with — (207) in order backlog.
Adjusted for acquired and divested operations and exchange rate fluctuations, turnover during the quarter was 16 per cent lower than last year.
Operational earnings from sales of used cars remained on a high level and amounted to SEK 120 M (154). The slightly lower result was mainly attributable to lower turnover due to shortage of cars. The number of used cars in stock remained at a low level. Operational earnings from sales of new cars amounted to SEK 119 M (126). The lower result for new cars was also mainly attributable to lower turnover.
Operational earnings for the Car Business in Sweden amounted to SEK 148 M (133) and the higher result was attributable to sales of new cars. The result from sales of used cars remained strong at SEK 94 M (100) despite
lower turnover. The number of used cars in stock was at a low level at the end of the quarter.
Operational earnings for the Car Business in Norway amounted to SEK 68 M (144). The lower result was primarily attributable to a lower turnover and gross profit margin. The result from sales of used cars amounted to SEK 22 M (53). The lower result was attributable to a lower gross profit margin. The number of used cars in stock was at a good level at the end of the quarter.
Operational earnings for the Car Business in Western Europe amounted to SEK 23 M (3). The result from sales of used cars amounted to SEK 5 M (1). The higher result can mainly be explained by divested operations that reported losses in previous years.
Deliveries of used cars by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| Number of | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden 1) | 7,177 | 8,989 | 14,614 | 16,917 | 31,088 | 33,391 |
| Norway 2) | 3,296 | 3,536 | 6,260 | 6,513 | 13,014 | 13,267 |
| Western Europe 3) | 743 | 1,518 | 1,516 | 2,888 | 3,776 | 5,148 |
| Total | 11,216 | 14,043 | 22,390 | 26,318 | 47,878 | 51,806 |
1) Acquired operations are included during the quarter with 713 (—) and during the first six months with 1,409 (—). Divested operations are included during the quarter with — (776) and during the first six months with — (1,161).
2) Acquired operations are included during the quarter with 172 (—) and during the first six months with 530 (—).
3) Divested operations are included during the quarter with — (409) and during the first six months with — (689).
Operational earnings and margin
CAR BUSINESS
Turnover by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 3,843 | 4,025 | 7,811 | 8,298 | 14,932 | 15,419 |
| Norway | 2,505 | 2,636 | 4,675 | 5,170 | 9,196 | 9,691 |
| Western Europe | 645 | 982 | 1,303 | 1,873 | 2,655 | 3,225 |
| Total | 6,993 | 7,643 | 13,789 | 15,341 | 26,783 | 28,335 |
Operational earnings by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 148 | 133 | 242 | 240 | 468 | 466 |
| Norway | 68 | 144 | 146 | 257 | 336 | 447 |
| Western Europe | 23 | 3 | 40 | 8 | 57 | 25 |
| Total | 239 | 280 | 428 | 505 | 861 | 938 |
Margin by geographic market
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| Per cent | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Sweden | 3.9 | 3.3 | 3.1 | 2.9 | 3.1 | 3.0 |
| Norway | 2.7 | 5.5 | 3.1 | 5.0 | 3.7 | 4.6 |
| Western Europe | 3.6 | 0.3 | 3.1 | 0.4 | 2.1 | 0.8 |
| Total | 3.4 | 3.7 | 3.1 | 3.3 | 3.2 | 3.3 |
Higher turnover via higher prices
Second quarter 2022
- Turnover amounted to SEK 359 M (309), an increase of 16 per cent.
- Operational earnings amounted to SEK 5 M (9).
- The margin was 1.3 per cent (2.9).
First six months 2022
- Turnover amounted to SEK 686 M (573), an increase of 20 per cent.
- Operational earnings amounted to SEK 20 M (21).
- The margin was 2.9 per cent (3.7).
Turnover and earnings
Second quarter 2022
The Fuel Business encompasses fuel stations and car washes and is concentrated to Sweden. The result for the quarter amounted to SEK 5 M (9).
Operational earnings and margin
Fuel Business
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | June 22 | 2021 | |
| Turnover, SEK M | 359 | 309 | 686 | 573 | 1,365 | 1,252 |
| Operational earnings, SEK M | 5 | 9 | 20 | 21 | 36 | 37 |
| Margin, per cent | 1.3 | 2.9 | 2.9 | 3.7 | 2.6 | 3.0 |
Sustainability
Our circular business model
The world is constantly changing, and Bilia needs to change with it. Our circular business model is the foundation of our sustainability work. It makes it possible to adapt operations and businesses to future requirements and the demand, needs and altered behaviour of our customers.
As a company, we have a responsibility to reduce our own impact on the climate and the planet's resources, and to help customers reduce their impact. With this as the point of departure, Bilia wants to be the industry's best service company by showing consideration for customers, colleagues and the world we live in. We want to create sustainable solutions for the mobile human's need to move around, by having a culture characterised by pride and consideration.
Bilia is a full-service supplier that offers services and products for the car ownership during the car's entire life cycle. The circular business model offers the customer help with everything from buying a new or used car, insurance, accessories, service, damage repair and rental car, to dismantling and recycling. The focus is on the customers, and the customer's needs and demand.
We strive for continuous development, to be a little better each day, whatever our title or position. Working in a goal-conscious way founded on our vision, values and customer promise creates a positive spiral. The foundations of this work are management by objectives, monitoring and quality processes. Bilia wants to create an experience that exceeds its customers' and colleagues' expectations. This is the foundation of our sustainable way of doing business.
Ongoing activities related to Bilia's sustainability targets
The sustainability targets form the basis for specific improvement activities in this year's action plan. Examples of ongoing activities are:
- Sustainable supply chain code of conduct for suppliers and risk model in order to meeting customer requirements and legislation.
- Circular business model how to increase the proportion of used parts in the Service Business.
- Reduced climate impact how to reduce customers'
- climate impact when they use our services and products.
SUSTAINABILITY TARGETS
Sustainable growth
Customer satisfaction to be three points higher than the average for each brand in their country.
Circular business model
Increased share of used spare parts in our repair shops.
Human care
Proportion of committed employees above the benchmark and annual improvement.
Proportion of women in sales operations should exceed 30 per cent.
Climate care
Contribute to lower climate impact among our customers when using the products and services we provide.
Nine key SDGs in the 2030 Agenda
Bilia has four focus areas for our sustainability work: Human care, Climate care, Sustainable growth, Circular business model. The focus areas are linked to the following of the UN's global Sustainable Development Goals in the 2030 Agenda.
| Global SDGs |
Bilia Focus areas |
Global SDGs |
Bilia Focus areas |
|---|---|---|---|
| Human care | Climate care | ||
| Human care | Circular busi ness model |
||
| Climate care | Sustainable growth |
||
| Sustainable growth |
All four areas | ||
| Climate care |
Other information
Risks and opportunities
Risks and risk takings are a natural part of Bilia's business operations. A good understanding of the risks together with an efficient way of identifying, evaluating and managing the risks are important for Bilia's short-term and long-term success. Bilia has a formal yearly process at Group level to identify, plan and reduce identified risks in the business. Please refer to the Annual Report for a description of the risks and Bilia's risk management.
With the exception of the war in Ukraine and the general economic situation, the events that have occured in the world since publication of the Annual Report are not judged to entail any new material risks or change in the Group's working methods compared with the description in the Annual Report for 2021. It is not possible to estimate the impact of the war in Ukraine or the general economic situation on Bilia's future operations, but a negative impact cannot be ruled out.
Seasonal variations and number of working days
Bilia's business and operating profit are affected by seasonal variations to a limited extent. The number of working days for the reporting periods is affected by when national holidays fall in different years. Business and operating profit in mainly the Service Business, but also the Car Business, are affected by the number of working days.
Related party transactions
For a description of related party transactions, see page 91, "Note 30" of the 2021 Annual Report.
Parent Company
Bilia AB is responsible for the Group's management, strategic planning, purchasing, public relations, business development, legal, marketing, HR, real estate activities, accounting and financing.
The best service company in the business – through consideration for customers, colleagues and the world we live in.
Bilia will create a sustainable business through consideration and pride by offering attractive and innovative solutions for the mobile human being. At Bilia, we strive to be the best service company in the business, with full-service workshops, showrooms and a customer service offering high availability.
VISION AND BUSINESS IDEA CULTURE AND CORE VALUES CUSTOMER PROMISE
Dedication, Competence, Genuine, Respect.
Bilia's culture and core values govern our attitude and the way we interact. At Bilia we are engaged in the meeting with customers, with each other and with suppliers. We show competence by using our expertise to find solutions and suggestions that benefit the customer the most. Being genuine and showing mutual respect build confidence in Bilia and our employees.
A better experience.
Through management by objectives, monitoring and quality processes, we work goal-consciously to be a little better every day. Our general goal is to create an experience that exceeds the customer's expectations, and adds value that distinguishes Bilia from its competitors.
FIFTEEN CAR BRANDS
Consolidated Statement of Income and Other Comprehensive Income
| Second quarter | First six months | Full year | ||||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | July 21– June 22 |
2021 |
| Net turnover | 8,945 | 9,402 | 17,629 | 18,746 | 34,392 | 35,509 |
| Costs of goods sold | –7,370 | –7,834 | –14,545 | –15,745 | –28,299 | –29,499 |
| Gross profit | 1,575 | 1,568 | 3,084 | 3,001 | 6,093 | 6,010 |
| Other operating income | 71 | 1 | 316 | 2 | 353 | 39 |
| Selling and administrative expenses | –1,123 | –1,006 | –2,180 | –1,934 | –4,306 | –4,060 |
| Other operating expenses | –2 | –22 | –15 | –24 | –55 | –64 |
| Operating profit 1) | 521 | 541 | 1,205 | 1,045 | 2,085 | 1,925 |
| Financial income | 0 | 2 | 1 | 3 | 3 | 5 |
| Financial expenses | –45 | –41 | –89 | –78 | –166 | –155 |
| Profit from shares in associated companies | 15 | 14 | 56 | 26 | 85 | 55 |
| Profit before tax | 491 | 516 | 1,173 | 996 | 2,007 | 1,830 |
| Tax | –106 | –110 | –194 | –213 | –354 | –373 |
| Net profit for the period | 385 | 406 | 979 | 783 | 1,653 | 1,457 |
| Other comprehensive income | ||||||
| Items that can be reclassified to profit or loss | ||||||
| Translation differences attributable to foreign | ||||||
| operations | –31 | –32 | 36 | 41 | 72 | 77 |
| Other comprehensive income after tax | –31 | –32 | 36 | 41 | 72 | 77 |
| Comprehensive income for the period | 354 | 374 | 1,015 | 824 | 1,725 | 1,534 |
| Net profit for the period attributable to Parent Company's shareholders |
385 | 406 | 979 | 783 | 1,653 | 1,457 |
| Comprehensive income for the period | ||||||
| attributable to Parent Company's shareholders | 354 | 374 | 1,015 | 824 | 1,725 | 1,534 |
| Basic earnings per share, SEK | 4.15 | 4.10 | 10.40 | 7.95 | 17.35 | 14.90 |
| Diluted earnings per share, SEK | 4.15 | 4.10 | 10.40 | 7.95 | 17.35 | 14.90 |
| Average number of shares, '000 | 92,976 | 98,117 | 94,067 | 98,273 | 95,657 | 97,743 |
| Average number of shares, after dilution, '000 | 93,084 | 98,174 | 94,179 | 98,354 | 95,772 | 97,807 |
| 1) Amortisation and depreciation according to plan by asset class: | ||||||
| – Intellectual property | –44 | –37 | –87 | –66 | –176 | –155 |
| – Land and buildings | –18 | –19 | –37 | –35 | –77 | –75 |
| – Equipment, tools, fixtures and fittings | –35 | –30 | –69 | –58 | –138 | –127 |
| – Leased vehicles | –90 | –97 | –218 | –193 | –444 | –419 |
| – Right-of-use assets | –132 | –114 | –267 | –230 | –531 | –494 |
| Total | –319 | –297 | –678 | –582 | –1,366 | –1,270 |
Consolidated Statement of Financial Position, Summary
| 30 June 2022 |
31 December 2021 |
30 June 2021 |
|
|---|---|---|---|
| 966 | 1,003 | 877 | |
| 1,208 | 1,175 | 1,087 | |
| 2,174 | 2,178 | 1,964 | |
| 2,354 | 2,851 | 3,008 | |
| 3,254 | 3,686 | 3,365 | |
| 1,719 | 1,646 | 1,635 | |
| 7,327 | 8,183 | 8,008 | |
| 575 | 533 | 504 | |
| 180 | 171 | 169 | |
| 10,256 | 11,065 | 10,645 | |
| 3,674 | 3,781 | 3,765 | |
| 1,885 | 1,600 | 1,957 | |
| 820 | 754 | 1,267 | |
| 6,379 | 6,135 | 6,989 | |
| TOTAL ASSETS | 16,635 | 17,200 | 17,634 |
| Equity and liabilities | |||
| Equity | 4,173 | 4,417 | 4,259 |
| Non-current liabilities | |||
| Bond issue 3) | 1,297 | 1,296 | 1,296 |
| Interest-bearing liabilities 4) | 225 | 194 | 268 |
| Lease liabilities 4) | 2,967 | 3,104 | 2,811 |
| SEK M Assets Non-current assets Intangible assets Intellectual property Goodwill Property, plant and equipment Leased vehicles Right-of-use assets Other tangible assets Financial assets 1) Deferred tax assets Total non-current assets Current assets Inventories Other receivables 1) Cash and cash equivalents 2) Total current assets Other liabilities and provisions Current liabilities Interest-bearing liabilities 4) Assets 1) Of which interest-bearing 4) Interest-bearing |
2,011 | 2,556 | 2,863 |
| 6,500 | 7,150 | 7,238 | |
| 282 | 366 | 574 | |
| Lease liabilities 4) | 523 | 566 | 520 |
| Other liabilities and provisions | 5,157 | 4,701 | 5,043 |
| 5,962 | 5,633 | 6,137 | |
| TOTAL EQUITY AND LIABILITIES | 16,635 | 17,200 | 17,634 |
| 566 | 524 | 495 | |
| 2) Interest-bearing | 820 | 754 | 1,267 |
| Liabilities | |||
| 3) Of which interest-bearing | 1,300 | 1,300 | 1,300 |
| 3,997 | 4,230 | 4,173 |
Statement of Changes in Group Equity, Summary
| SEK M | 30 June 2022 |
31 December 2021 |
30 June 2021 |
|---|---|---|---|
| Opening balance | 4,417 | 3,968 | 3,968 |
| Cash dividend to shareholders | –188 | –587 | –294 |
| Decided but not yet paid dividend | –552 | — | — |
| Use of shares in own custody as payment in business combinations | — | 45 | 45 |
| Incentive programme | 3 | 4 | 0 |
| Buy-back of own shares | –518 | –517 | –256 |
| Revaluation of put option | –4 | –30 | –28 |
| Comprehensive income for the period | 1,015 | 1,534 | 824 |
| Equity at end of period | 4,173 | 4,417 | 4,259 |
Consolidated Statement of Cash Flows
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Operating activities | ||||||
| Profit before tax | 491 | 516 | 1,173 | 996 | 2,007 | 1,830 |
| Depreciation and impairment losses | 320 | 297 | 679 | 582 | 1,462 | 1,365 |
| Other items not affecting cash | –81 | –5 | –360 | –9 | –548 | –197 |
| Tax paid | –120 | –94 | –240 | –221 | –328 | –309 |
| Change in inventories | 152 | 338 | 18 | 220 | 176 | 378 |
| Change in operating receivables | –17 | 168 | –64 | –4 | 383 | 443 |
| Change in operating liabilities | –514 | –190 | –682 | –664 | –1,541 | –1,523 |
| Cash flow from operating activities | 231 | 1,030 | 524 | 900 | 1,611 | 1,987 |
| Investing activities | ||||||
| Acquisition of non-current assets (intangible and tangible) |
–182 | –62 | –232 | –133 | –384 | –285 |
| Disposal of non-current assets (intangible and | ||||||
| tangible) | 17 | 39 | 19 | 39 | 55 | 75 |
| Acquisition of leased vehicles | –223 | –319 | –477 | –583 | –866 | –972 |
| Disposal of leased vehicles | 403 | 298 | 760 | 662 | 1,107 | 1,009 |
| Operating cash flow | 246 | 986 | 594 | 885 | 1,523 | 1,814 |
| Investment in financial assets | –2 | 0 | –2 | 0 | –4 | –2 |
| Disposal of financial assets | 1 | 1 | 2 | 1 | 3 | 2 |
| Acquisition of subsidiary/operation, net | –110 | –677 | –110 | –692 | –493 | –1,075 |
| Disposal of subsidiary/operation, net | 121 | — | 541 | — | 541 | — |
| Cash flow from investing activities | 25 | –720 | 501 | –706 | –41 | –1,248 |
| Financing activities | ||||||
| Borrowings | — | — | — | — | 247 | 247 |
| Repayment of loans | –17 | –56 | –49 | –186 | –511 | –648 |
| Repayment of lease liabilities | –131 | –120 | –212 | –260 | –495 | –543 |
| Buy-back of own shares | –280 | –170 | –518 | –256 | –779 | –517 |
| Dividend paid to the company's shareholders | –188 | –294 | –188 | –294 | –481 | –587 |
| Cash flow from financing activities | –616 | –640 | –967 | –996 | –2,019 | –2,048 |
| Change in cash and cash equivalents, | ||||||
| excl. translation differences | –360 | –330 | 58 | –802 | –449 | –1,309 |
| Exchange difference in cash and cash equivalents | 0 | –23 | 8 | 6 | 2 | 0 |
| Change in cash and cash equivalents | –360 | –353 | 66 | –796 | –447 | –1,309 |
| Cash and cash equivalents at start of period | 1,180 | 1,620 | 754 | 2,063 | 1,267 | 2,063 |
| Cash and cash equivalents at end of period | 820 | 1,267 | 820 | 1,267 | 820 | 754 |
Note 1 Accounting principles
This interim report has been prepared in accordance with International Financial Accounting Standards (IFRSs) IAS 34 and applicable provisions of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, "Interim Reports". The same accounting policies and calculation methods have been applied for the Group and the Parent Company as in the most recent Annual Report.
New accounting policies from 1 January 2022
New or revised IFRS to be used in future are not expected to have any material effect on the consolidated financial statements.
Disclosures in accordance with IAS 34, paragraph 16, are made not only in the financial statements and related notes, but also in other parts of this interim report.
Note 2 Fair value of financial instruments
Derivative instruments such as interest rate swaps and forward exchange contracts are used to manage Bilia's interest rate risk. They should only be used to meet the requirements on minimising risk in a cost-effective manner as prescribed by the finance policy. The carrying amount of financial instruments is a reasonable approximation of fair value.
Fair value is determined on the basis of the following three levels:
Level 1: according to prices quoted on an active market for the same instrument.
Level 2: based on directly or indirectly observable market inputs other than those included in level 1.
Level 3: according to inputs not based on observable market data.
Currency derivatives are recognised as financial assets and liabilities and are measured at fair value in accordance with Level 2. The value of the currency derivatives is not material and does not constitute a significant item in the Consolidated Statement of Financial Position. Measurement of the currency derivatives at fair value has resulted in an income of SEK 4 M that is matched by a cost stemming from revaluation of assets in foreign currencies. The effect on the Group's result is SEK 0 M.
Calculation of fair value
The fair value of currency derivatives is determined on the basis of market rates. If such rates are not available, the fair value is calculated by discounting the difference between the contracted forward rate and the forward rate that can be obtained on the balance sheet date for the remaining contract period.
Note 3 Revenues and costs that affect comparability
Acquisition-related expenses and value adjustments relate to costs for acquiring operations.
Result from sale of operations includes profit from the divestment of Volvo/Renault facilities in Sweden. Amortisation and impairment losses of surplus values in the full year 2021 includes a write-down of intangible assets in Norway amounting to SEK 35 M.
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Operational earnings | 498 | 574 | 998 | 1,102 | 2,038 | 2,142 |
| – Result from sale of operations | 55 | — | 277 | — | 277 | — |
| – Structural costs etc. | 9 | –2 | 8 | –3 | –28 | –39 |
| – Acquisition-related costs and value adjustments | –2 | –1 | –2 | –1 | –13 | –12 |
| – Amortisation/impairment losses of surplus values | –39 | –30 | –76 | –53 | –189 | –166 |
| Operating profit | 521 | 541 | 1,205 | 1,045 | 2,085 | 1,925 |
Note 4 Group's operating segments
| Second quarter 2022 | |
|---|---|
| SEK M | Service | Car | Fuel | Total | Segment reconciliation |
Group |
|---|---|---|---|---|---|---|
| Net turnover | ||||||
| External sales | 1,583 | 6,993 | 359 | 8,935 | 10 | 8,945 |
| Internal sales | 450 | — | — | 450 | –953 | — |
| Total net turnover | 2,033 | 6,993 | 359 | 9,385 | -943 | 8,945 |
| Depreciation/amortisation | –123 | –179 | –1 | –303 | –16 | –319 |
| Operational earnings/Operating profit | 286 | 239 | 5 | 530 | –9 | 521 |
| Revenue and costs that affect comparability: | ||||||
| – Result from sale of operations | 11 | 27 | 17 | 55 | — | 55 |
| – Structural costs etc | 5 | 4 | — | 9 | — | 9 |
| – Acquisition-related costs and value adjustments | –2 | — | — | –2 | — | –2 |
| – Amortisation of surplus values | –19 | –20 | — | –39 | — | –39 |
| Total | –5 | 11 | 17 | 23 | — | 23 |
| Service | Car | |||||
|---|---|---|---|---|---|---|
| SEK M | Sweden | Norway Western Europe | Sweden | Norway Western Europe | ||
| Net turnover | ||||||
| External sales | 1,072 | 417 | 94 | 3,843 | 2,505 | 645 |
| Internal sales | 274 | 162 | 14 | — | — | — |
| Total net turnover | 1,346 | 579 | 108 | 3,843 | 2,505 | 645 |
| Depreciation/amortisation | –76 | –35 | –12 | –124 | –43 | –12 |
| Operational earnings | 199 | 72 | 15 | 148 | 68 | 23 |
| Revenue and costs that affect comparability: | ||||||
| – Result from sale of operations | 11 | — | — | 27 | — | — |
| – Structural costs etc | — | 5 | — | — | 4 | — |
| – Acquisition-related costs and value adjustments | –1 | –1 | — | — | –1 | 1 |
| – Amortisation of surplus values | –9 | –4 | –6 | –9 | –5 | –6 |
| Total | 1 | — | –6 | 18 | –2 | –5 |
Second quarter 2021
| Segment | ||||||
|---|---|---|---|---|---|---|
| SEK M | Service | Car | Fuel | Total | reconciliation | Group |
| Net turnover | ||||||
| External sales | 1,442 | 7,643 | 309 | 9,394 | 8 | 9,402 |
| Internal sales | 469 | — | — | 469 | –469 | — |
| Total net turnover | 1,911 | 7,643 | 309 | 9,863 | –469 | 9,402 |
| Depreciation/amortisation | –106 | –171 | –1 | –278 | –19 | –297 |
| Operational earnings/Operating profit | 326 | 280 | 9 | 615 | –74 | 541 |
| Revenue and costs that affect comparability: | ||||||
| – Structural costs etc. | –1 | –1 | — | –2 | — | –2 |
| – Acquisition-related costs and value adjustments | –2 | 1 | — | –1 | — | –1 |
| – Amortisation of surplus values | –15 | –15 | — | –30 | — | –30 |
| Total | –18 | –15 | — | –33 | — | –33 |
| Service | Car | |||||
|---|---|---|---|---|---|---|
| SEK M | Sweden | Norway Western Europe | Sweden | Norway Western Europe | ||
| Net turnover | ||||||
| External sales | 921 | 411 | 110 | 4,025 | 2,636 | 982 |
| Internal sales | 297 | 147 | 25 | — | — | — |
| Total net turnover | 1,218 | 558 | 135 | 4,025 | 2,636 | 982 |
| Depreciation/amortisation | –59 | –33 | –14 | –124 | –28 | –19 |
| Operational earnings | 216 | 92 | 18 | 133 | 144 | 3 |
| Revenue and costs that affect comparability: | ||||||
| – Structural costs etc. | –1 | — | — | –1 | — | — |
| – Acquisition-related costs and value adjustments | –1 | –1 | — | — | — | 1 |
| – Amortisation of surplus values | –5 | –5 | –5 | –5 | –4 | –6 |
| Total | –7 | –6 | –5 | –6 | –4 | –5 |
First six months 2022
| SEK M | Service | Car | Fuel | Total | Segment reconciliation |
Group |
|---|---|---|---|---|---|---|
| Net turnover | ||||||
| External sales | 3,136 | 13,789 | 686 | 17,611 | 18 | 17,629 |
| Internal sales | 953 | — | — | 953 | –953 | — |
| Total net turnover | 4,089 | 13,789 | 686 | 18,564 | –935 | 17,629 |
| Depreciation/amortisation | –250 | –393 | –2 | –645 | –33 | –678 |
| Operational earnings/Operating profit | 601 | 428 | 20 | 1,049 | 156 | 1,205 |
| Revenue and costs that affect comparability: | ||||||
| – Result from sale of operations | 55 | 170 | 52 | 277 | — | 277 |
| – Structural costs etc | 5 | 4 | 0 | 9 | –1 | 8 |
| – Acquisition-related costs and value adjustments | –2 | 0 | — | –2 | — | –2 |
| – Amortisation of surplus values | –39 | –37 | — | –76 | — | –76 |
| Total | 19 | 137 | 52 | 208 | –1 | 207 |
| Service | Car | |||||
|---|---|---|---|---|---|---|
| SEK M | Sweden | Norway Western Europe | Sweden | Norway Western Europe | ||
| Net turnover | ||||||
| External sales | 2,109 | 850 | 177 | 7,811 | 4,675 | 1,303 |
| Internal sales | 618 | 287 | 48 | — | — | — |
| Total net turnover | 2,727 | 1,137 | 225 | 7,811 | 4,675 | 1,303 |
| Depreciation/amortisation | –153 | –72 | –25 | –254 | –115 | –24 |
| Operational earnings | 423 | 145 | 33 | 242 | 146 | 40 |
| Revenue and costs that affect comparability: | ||||||
| – Result from sale of operations | 55 | — | — | 170 | — | — |
| – Structural costs etc | 0 | 5 | 0 | 0 | 4 | 0 |
| – Acquisition-related costs and value adjustments | –1 | –1 | 0 | 0 | –1 | 1 |
| – Amortisation of surplus values | –18 | –9 | –12 | –17 | –9 | –11 |
| Total | 36 | –5 | –12 | 153 | –6 | –10 |
First six months 2021
| Segment | Group | ||||
|---|---|---|---|---|---|
| 2,818 | 15,341 | 573 | 18,732 | 14 | 18,746 |
| 973 | — | — | 973 | –973 | — |
| 3,791 | 15,341 | 573 | 19,705 | –959 | 18,746 |
| –207 | –338 | –2 | –547 | –35 | –582 |
| 645 | 505 | 21 | 1,171 | –126 | 1,045 |
| –2 | –1 | — | –3 | — | –3 |
| –2 | 1 | — | –1 | — | –1 |
| –27 | –26 | — | –53 | — | –53 |
| –31 | –26 | — | –57 | — | –57 |
| Service | Car | Fuel | Total | reconciliation |
| Service | Car | ||||||
|---|---|---|---|---|---|---|---|
| SEK M | Sweden Norway Western Europe |
Sweden | Norway Western Europe | ||||
| Net turnover | |||||||
| External sales | 1,800 | 793 | 225 | 8,298 | 5,170 | 1,873 | |
| Internal sales | 623 | 303 | 47 | — | — | — | |
| Total net turnover | 2,423 | 1,096 | 272 | 8,298 | 5,170 | 1,873 | |
| Depreciation/amortisation | –119 | –61 | –27 | –255 | –50 | –33 | |
| Operational earnings | 432 | 185 | 28 | 240 | 257 | 8 | |
| Revenue and costs that affect comparability: | |||||||
| – Structural costs etc. | –2 | — | — | –1 | — | — | |
| – Acquisition-related costs and value adjustments | –1 | –1 | — | — | — | 1 | |
| – Amortisation of surplus values | –8 | –8 | –11 | –8 | –7 | –11 | |
| Total | –11 | –9 | –11 | –9 | –7 | –10 |
Note 5 Acquisitions and divestments of operations
Acquisitions in 2022
On 1 June Bilia acquired AS Insignia in Norway, which conducts sales and service operations for the car brands Jaguar, Land Rover and Morgan. The acquired operation had a turnover of approximately NOK 450 M for 2021 and reported an operating loss of NOK 5 M. The number of employees is 43 people. Acquisition-related expenses attributable to the acquisition amounted to NOK 1 M and relate to fees to consultants in connection with due
diligence and have been reported as other operating expenses. Acquired distribution rights of NOK 13 M are reported as intangible assets and are amortised over 5 years.
Other acquisitions during the year
The acquisitions of LB´s Lastbilar AB and Kokstad Autosenter AS have not had any significant impact on the Group's financial position.
Preliminary net assets in the acquired operations
| SEK M | |
|---|---|
| Intangible assets, customer relations | 30 |
| Property, plant and equipment | 30 |
| Deferred tax asset | 3 |
| Inventories | 128 |
| Trade receivables and other receivables | 96 |
| Cash and cash equivalents | 8 |
| Interest-bearing liabilities | –24 |
| Trade payables and other liabilities | –153 |
| Deferred tax liability | –17 |
| Net identifiable assets and liabilities | 101 |
| Consolidated goodwill | 17 |
| Net identifiable assets and liabilities, including goodwill | 118 |
| Purchase consideration | –118 |
| Less: Purchase consideration not yet received | 8 |
| Net effect on cash and cash equivalents | –110 |
Divestments in 2022
During the year, ten facilities in Sweden that sell new cars, used cars and service operations for Volvo and Renault have been divested. On 1 February, Bilia sold four facilities in Skaraborg to Bröderna Brandt Personbilar AB. On 1 May, Bilia sold five facilities in Bergslagen to Bilkompaniet in Dalarna AB. On 1 June, Bilia sold a facility in Stenungsund to Stendahls Bil AB. The divested operations has reported turnover in the region of SEK 1,600 M and an operational profit of approximately SEK 110 M for the past two years. The divestments resulted in a gain of approximately SEK 222 M, reported in the first quarter and a gain of approximately SEK 55 M in the second quarter which is reported as Other operating income.
On 1 February, Bilia sold the remaining four BMW/MINI facilities in Germany to Autohaus Krah + Enders GmbH & Co. KG. The divested operation in Germany reported turnover in the region of SEK 800 M and an operational loss of approximately SEK 30 M yearly for the past two years. The divestment resulted in a loss of approximately SEK 30 M, which was reported in the fourth quarter of 2021 when the agreement to sell the facilities was made.
| SEK M | |
|---|---|
| Property, plant and equipment | 202 |
| Inventories | 233 |
| Trade receivables and other receivables | 8 |
| Interest-bearing liabilities | –128 |
| Trade payables and other liabilities | –51 |
| Net identifiable assets and liabilities | 264 |
| Purchase consideration | 549 |
| Less: Purchase consideration not yet received | –8 |
| Net effect on cash and cash equivalents | 541 |
Note 6 Specification of interest-bearing net debt and EBITDA
Specification of interest-bearing net debt
| SEK M | 30 June | 31 December | 30 June |
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| Current interest-bearing liabilities | 282 | 366 | 574 |
| Non-current interest-bearing liabilities | 1,525 | 1,494 | 1,568 |
| Lease liabilities IFRS 16 | 3,490 | 3,670 | 3,331 |
| Cash and cash equivalents | –820 | –754 | –1,267 |
| Interest-bearing assets | –9 | 0 | 0 |
| Shares in associated companies | –557 | –524 | –495 |
| Net debt at end of the period | 3,911 | 4,252 | 3,711 |
| Net debt at end of the period, excluding IFRS 16 | 421 | 582 | 380 |
The ratio of net debt to EBITDA
| SEK M | July 21- June 22 |
Full year 2021 |
July 20- June 21 |
|---|---|---|---|
| Operating profit | 2,085 | 1,925 | 1,861 |
| Result from sale of operations, structural costs, acquisition costs and impairment losses | –201 | 87 | 119 |
| Total depreciation and amortisation | 1,366 | 1,270 | 1,142 |
| – depreciation of leased vehicles with repurchase agreements | –359 | –340 | –312 |
| EBITDA | 2,891 | 2,942 | 2,810 |
| Net debt to EBITDA ratio, times | 1.4 | 1.4 | 1.3 |
| Operating profit excluding IFRS 16 | 2,014 | 1,864 | 1,798 |
| Result from sale of operations, structural costs, acquisition costs and impairment losses | –201 | 87 | 119 |
| Total depreciation and amortisation | 1,366 | 1,270 | 1,142 |
| – depreciation of leased vehicles with repurchase agreements | –359 | –340 | –312 |
| – depreciation of right-of-use assets | –531 | –494 | –443 |
| EBITDA excluding IFRS 16 | 2,289 | 2,387 | 2,304 |
| Net debt to EBITDA ratio excluding IFRS 16, times | 0.2 | 0.2 | 0.2 |
Income Statement for Parent Company
| Second quarter | First six months | July 21– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 | June 22 | 2021 |
| Net turnover | 175 | 163 | 344 | 313 | 686 | 655 |
| Administrative expenses | –209 | –203 | –396 | –382 | –782 | –768 |
| Operating result 1) | –34 | –40 | –52 | –69 | –96 | –113 |
| Result from financial items | ||||||
| Profit from shares in Group companies | 368 | 102 | 368 | 102 | 270 | 4 |
| Interest income from Group companies | 11 | 10 | 20 | 19 | 36 | 35 |
| Other interest income and similar line items | 0 | 2 | 0 | 2 | 1 | 3 |
| Interest expenses and similar line items | –13 | –9 | –25 | –17 | –39 | –31 |
| Result after financial items | 332 | 65 | 311 | 37 | 172 | –102 |
| Appropriations | — | — | — | — | 1,020 | 1,020 |
| Result before tax | 332 | 65 | 311 | 37 | 1,192 | 918 |
| Tax | 2 | 14 | –5 | 24 | –185 | –156 |
| Net result for the period | 334 | 79 | 306 | 61 | 1,007 | 762 |
| 1) Amortisation and depreciation according to plan by asset class: | ||||||
| - Buildings | –8 | –7 | –14 | –13 | –28 | –27 |
| - Equipment, tools, fixtures and fittings | 0 | –1 | 0 | –1 | –1 | –2 |
| Total | –8 | –8 | –14 | –14 | –29 | –29 |
Balance Sheet for Parent Company, Summary
| SEK M | 30 June 2022 |
31 December 2021 |
30 June 2021 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 176 | 207 | 219 |
| Shares in Group companies | 2,423 | 2,424 | 2,031 |
| Other tangible assets | 81 | 85 | 86 |
| Total non-current assets | 2,680 | 2,716 | 2,336 |
| Current assets | |||
| Receivables from Group companies | 417 | 1,480 | 423 |
| Other receivables | 236 | 157 | 211 |
| Cash and cash equivalents | 974 | 559 | 1,225 |
| Total current assets | 1,627 | 2,196 | 1,859 |
| TOTAL ASSETS | 4,307 | 4,912 | 4,195 |
| Equity and liabilities | |||
| Equity | 635 | 1,582 | 1,433 |
| Untaxed reserves | 1,218 | 1,218 | 1,016 |
| Provisions | |||
| Deferred tax liability | 14 | 14 | 15 |
| 14 | 14 | 15 | |
| Non-current liabilities | |||
| Bond issue | 1,297 | 1,296 | 1,296 |
| Other liabilities | 165 | 165 | 174 |
| 1,462 | 1,461 | 1,470 | |
| Current liabilities | |||
| Liabilities to Group companies | 93 | 376 | 57 |
| Other liabilities | 885 | 261 | 204 |
| 978 | 637 | 261 | |
| TOTAL EQUITY AND LIABILITIES | 4,307 | 4,912 | 4,195 |
The Group
| Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | |
|---|---|---|---|---|---|---|---|---|
| Net turnover, SEK M | 7,559 | 8,382 | 9,344 | 9,402 | 8,129 | 8,634 | 8,684 | 8,945 |
| EBITDA, SEK M | 578 | 758 | 712 | 763 | 691 | 776 | 715 | 709 |
| EBITDA excl. IFRS 16, SEK M | 457 | 632 | 582 | 634 | 545 | 626 | 559 | 561 |
| Operational earnings, SEK M | 402 | 577 | 528 | 574 | 482 | 558 | 500 | 498 |
| Operational margin, % | 5.3 | 6.9 | 5.6 | 6.1 | 5.9 | 6.5 | 5.8 | 5.6 |
| Operating profit, SEK M | 375 | 441 | 504 | 541 | 433 | 447 | 684 | 521 |
| Operating margin, % | 5.0 | 5.3 | 5.4 | 5.8 | 5.3 | 5.2 | 7.9 | 5.8 |
| Profit before tax, SEK M | 353 | 422 | 480 | 516 | 410 | 424 | 682 | 491 |
| Profit/loss for the period, SEK M | 281 | 323 | 377 | 406 | 325 | 349 | 594 | 385 |
| The ratio of net debt to EBITDA excl. IFRS 16, times 1) | –0.4 | –0.2 | 0.0 | 0.2 | 0.1 | 0.2 | 0.1 | 0.2 |
| Return on capital employed, % 1) | 16.2 | 16.7 | 19.1 | 21.4 | 21.1 | 20.5 | 22.0 | 21.9 |
| Return on equity, % 1) | 27.4 | 27.5 | 31.6 | 35.0 | 34.2 | 33.8 | 37.4 | 37.1 |
| Equity/assets ratio, % | 24 | 24 | 25 | 24 | 27 | 26 | 28 | 25 |
| Earnings per share, SEK | 2.80 | 3.25 | 3.85 | 4.10 | 3.35 | 3.60 | 6.25 | 4.15 |
| Equity per share, SEK | 38 | 40 | 44 | 44 | 47 | 46 | 52 | 45 |
| Average number of shares, '000 | 100,134 | 99,959 | 98,414 | 98,117 | 97,550 | 96,894 | 95,170 | 92,976 |
| Number of shares, '000 | 100,134 | 98,914 | 98,134 | 97,550 | 97,550 | 95,777 | 93,947 | 91,984 |
| Holdings of own shares, '000 2) | 2,666 | 3,886 | 4,666 | 5,250 | 5,250 | 7,023 | 8,853 | 4,316 |
1) Rolling 12 months.
2) On 3 May 2022, repurchased own shares amounting to 6,500,000 were withdrawn.
Business area – Service Business
| Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | |
|---|---|---|---|---|---|---|---|---|
| Turnover, SEK M | 1,558 | 1,995 | 1,880 | 1,911 | 1,764 | 2,257 | 2,056 | 2,033 |
| Operational earnings, SEK M | 237 | 376 | 319 | 326 | 257 | 377 | 315 | 286 |
| Margin, % | 15.2 | 18.8 | 16.9 | 17.1 | 14.6 | 16.7 | 15.3 | 14.1 |
| Reported growth in Sweden and Norway, % | 1.7 | 2.4 | 6.6 | 18.8 | 16.2 | 15.3 | 11.3 | 8.3 |
| Organic growth in Sweden and Norway, % | 6.0 | 5.2 | 7.8 | 9.0 | –3.8 | –4.7 | –5.0 | 0.5 |
Business area – Car Business
| Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | |
|---|---|---|---|---|---|---|---|---|
| Turnover, SEK M | 6,049 | 6,627 | 7,698 | 7,643 | 6,406 | 6,588 | 6,796 | 6,993 |
| Operational earnings, SEK M | 169 | 234 | 225 | 280 | 226 | 207 | 189 | 239 |
| Margin, % | 2.8 | 3.5 | 2.9 | 3.7 | 3.5 | 3.1 | 2.8 | 3.4 |
| New cars delivered, number | 10,550 | 13,259 | 13,718 | 12,518 | 9,182 | 12,366 | 10,882 | 10,323 |
| Order backlog of new cars, number | 14,492 | 13,458 | 13,741 | 13,495 | 19,603 | 22,775 | 27,178 | 29,023 |
| Used cars delivered, number 1) | 13,388 | 10,948 | 12,275 | 14,043 | 13,806 | 11,682 | 11,174 | 11,216 |
1) Year 2020 has been recalculated.
Business area – Fuel Business
| Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | |
|---|---|---|---|---|---|---|---|---|
| Turnover, SEK M | 287 | 259 | 264 | 309 | 330 | 349 | 327 | 359 |
| Operational earnings, SEK M | 9 | 7 | 12 | 9 | 8 | 8 | 15 | 5 |
| Margin, % | 2.9 | 2.9 | 4.7 | 2.9 | 2.4 | 2.3 | 4.7 | 1.3 |
Definitions and performance measures
Bilia applies guidelines from ESMA (European Securities and Markets Authority) concerning alternative performance measures (APMs). Even though these performance measures are not defined or specified by IFRSs, Bilia believes that they provide valuable information to investors and Bilia's management as a complement to IFRSs for assessing Bilia's performance.
Acquisition-related costs and value adjustments
Pertains to costs for legal consultants and other external costs associated directly with an acquisition, and value adjustments regarding acquired inventory assets, which are depreciated over the turnover rate of the asset.
Amortisation of surplus values
Occurs in connection with acquisitions of operations and is recognised under intangible assets. Normally these surplus values are amortised over a 10-year period.
Capital employed
Balance sheet total less non-interest-bearing current liabilities and provisions as well as deferred tax liabilities.
Comparable operations
Financial information and number of units that are adjusted for operations that have been acquired or disposed of during one of the periods.
Deliveries
Cars that have been physically turned over to the customer and invoiced and are included in reported net turnover.
EBITDA
Operational earnings plus total depreciation/amortisation less amortisation of surplus values and depreciation of leased vehicles with repurchase agreements.
Equity/assets ratio
Equity in relation to balance sheet total.
Excluding IFRS 16
Information excluding the accounting standard IFRS 16 Leases.
Gain from sale of operation
Difference between purchase consideration and the operation's consolidated carrying amount, less selling costs.
Growth
Increase or decrease of net turnover in relation to the preceding year.
Liquidity
Unutilised credit with Nordea and DNB and cash and cash equivalents.
Net debt
Net debt consists of interest-bearing liabilities less cash and cash equivalents, interest-bearing current and longterm receivables, interests in associated companies and leased vehicles, long-term.
Operating cash flow
Cash flow from operating activities plus investments in and disposals of intangible assets and property, plant and equipment.
Operating margin
Operating profit in relation to net turnover.
Operational earnings
Operating profit, excluding revenues and costs that affect comparability between accounting periods and/ or operating segments. They include, but are not limited to, acquisition-related expenses, value adjustments, restructurings and amortisation of surplus values. For the business areas operational earnings are the only result measurement.
Operational margin
Operational earnings in relation to net turnover. For the business areas the operational margin is called "Margin".
Order backlog
New cars ordered by the customer but not yet delivered.
Organic growth
Net turnover is adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is also made for exchange rate differences and for calendar effect. Organic growth reported under Quarterly review for the Service Business relates to Sweden and Norway.
Return on capital employed
Operating profit plus interest expense included in the business and financial income in relation to average capital employed.
Return on equity
Net profit for the year in relation to average equity.
Structural costs
Costs that significantly alter the thrust and/or scope of the operation. Examples of structural costs may be costs for reducing the number of employees and costs for vacating a leased facility before the expiration of the lease.
The ratio of net debt to EBITDA
Net debt in relation to EBITDA.
Underlying values
Values that are adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is made for exchange rate differences, where applicable.
Reconciliation of performance measures can be found at bilia.com/en/investors/financial-information/
Additional disclosures
Press and analyst meeting
On Friday 22 July 2022 Bilia arranges press and analyst meetings via Financial Hearings, where CEO Per Avander and CFO Kristina Franzén will present the report and answer questions. The presentation starts at 09:00 CEST. To participate, please call in via telephone number or follow the presentation on the web link as below. Phone number +46 (0)8 505 163 86 PIN code 7163030#
https://financialhearings.com/event/44350
Contact
For further information please contact:
Carl Fredrik Ewetz, Investor Relations +46 (0) 10 497 07 73, [email protected] Per Avander, Managing Director and CEO, +46 (0)10 497 70 00, [email protected] Kristina Franzén, CFO, +46 (0)10 497 73 40, [email protected]
Audit
This interim report has not been subject to review by the auditors.
Prospective information
Prospective information in this report is based on management's expectations at the time of the report. Even if the Board of Directors and management find the expectations to be reasonable, there is no guarantee that these expectations are or will turn out to be correct. Consequently, future outcomes may vary considerably compared with those foreseen in the prospective information due to such circumstances as a changed market situation for the Group's services or more generally changed conditions relating to the economy, markets and competition, changes in legal requirements and other political measures, as well as fluctuations in exchange rates. The company does not undertake to update or correct such prospective information other than what is stipulated by law.
Calendar
| Interim Report July–September 2022: |
26 October 2022 |
|---|---|
| Interim Report October–December 2022: |
8 February 2023 |
| Annual General Meeting 2023: | 5 April 2023 |
| Interim Report January–March 2023: |
26 April 2023 |
| Interim Report April–June 2021: |
21 July 2023 |
| Interim Report July–September 2023: |
24 October 2023 |
Declaration
The interim report provides a true and fair summary of the Parent Company's and the Group's activities, financial position and results of operations while describing significant risks and uncertainties faced by the Parent Company and the companies included in the Group.
Gothenburg, 22 July 2022
Mats Qviberg Chairman
Jan Pettersson Ingrid Jonasson Blank Gunnar Blomkvist Deputy chairman Board member Board member
Anna Engebretsen Nicklas Paulson Jon Risfelt
Board member Board member Board member
Caroline af Ugglas Dragan Mitrasinovic Patrik Nordvall
Board member Board member appointed Board member appointed by employee organisation by employee organisation
Per Avander Managing Director
This is information that Bilia AB (publ) is obliged to make public pursuant to the EU's Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on 22 July 2022, at 08:00 CEST.
Bilia is one of Europe's largest car dealers, with a leading position in servicing and sales of cars, transport vehicles and trucks plus supplementary services such as financing and insurance. Bilia has about 150 facilities in Sweden, Norway, Luxembourg and Belgium plus two online auction sites, one in Sweden and one in Norway.
Bilia's Service Business comprises a well-developed range of services and service concepts that are continuously developed to simplify car ownership for the customers. Bilia offers accessories and spare parts, original services and repairs, tyre hotels, rim repair, car glass repair along with other workshop services, store sales and e-commerce.
Bilia's Car Business comprises sales of both new and used cars, transport vehicles and trucks, plus supplementary services such as financing and insurance. Bilia sells cars from Volvo, BMW, Toyota, Mercedes, Renault, Lexus, MINI, Porsche, Nissan, Dacia, Smart, Alpine, Jaguar, Land Rover and XPENG as well as transport vehicles from Renault, Toyota, Mercedes, Nissan and Dacia and trucks from Mercedes.
Bilia's Fuel Business comprises fuel sales and car washes in Sweden.