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Bilia Earnings Release 2023
2892_10-q_2023-10-24_2c72d7fb-8aa7-4b37-9c28-3785ee1aa2f8.pdf
Earnings Release
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Third quarter 2023
Stable results and improved cash flow
Third quarter 2023
- Net turnover amounted to SEK 8,708 M (7,291), an increase of 19 per cent.
- Operational earnings amounted to SEK 335 M (334).
- Sweden and Western Europe reported higher operational earnings while Norway reported SEK 53 M lower operational earnings compared to the previous year.
- Operating profit amounted to SEK 288 M (386). The previous year's operating profit included a profit from sale of operations of SEK 92 M.
- Net profit for the period amounted to SEK 169 M (285). The previous year's net profit included a profit after tax from sale of operations of SEK 80 M. Earnings per share amounted to SEK 1.83 (3.14).
- Operating cash flow amounted to SEK 269 M (–133).
Nine months 2023
- Net turnover amounted to SEK 28,406 M (24,920), an increase of 14 per cent.
- Operational earnings amounted to SEK 1,209 M (1,332).
- Sweden and Western Europe reported higher operational earnings while Norway reported SEK 228 M lower operational earnings compared to the previous year.
- Operating profit amounted to SEK 1,062 M (1,591). The previous year's operating profit included a profit from sale of operations of SEK 369 M.
- Net profit for the period amounted to SEK 682 M (1,264). The previous year's net profit included a profit after tax from sale of operations of SEK 346 M. Earnings per share amounted to SEK 7.41 (13.54).
- Operating cash flow amounted to SEK 480 M (461).
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Net turnover | 8,708 | 7,291 | 28,406 | 24,920 | 38,831 | 35,345 |
| Operational earnings 1) | 335 | 334 | 1,209 | 1,332 | 1,783 | 1,906 |
| Operational margin, % | 3.8 | 4.6 | 4.3 | 5.3 | 4.6 | 5.4 |
| Operating profit | 288 | 386 | 1,062 | 1,591 | 1,573 | 2,102 |
| Operating margin, % | 3.3 | 5.3 | 3.7 | 6.4 | 4.1 | 5.9 |
| Profit before tax | 216 | 359 | 866 | 1,532 | 1,336 | 2,002 |
| Net profit for the period | 169 | 285 | 682 | 1,264 | 1,040 | 1,622 |
| Earnings per share, SEK 2) | 1.83 | 3.14 | 7.41 | 13.54 | 11.30 | 17.43 |
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.
Stable operational earnings and improved cash flow
Third quarter
Our operational earnings for the third quarter were on a par with the previous year and amounted to SEK 335 M, with a margin of 3.8 per cent. The result for the Service Business amounted to SEK 205 M, which was higher than the previous year. Operating cash flow improved and amounted to SEK 269 M, compared to SEK –133 M the previous year.
Sweden and Western Europe reported higher results compared to the previous year, while Norway reported a result of SEK 23 M, compared to SEK 76 M the previous year. The lower result was attributable to the Car Business where the market situation in Norway was challenging for many players.
The backlog for new cars in Sweden and Western Europe remained high from a historical perspective.
Good demand in the Service Business
Demand for servicing was good during the third quarter and was not affected by the economic uncertainty. Our customers continue to look after their cars also in harder economic times, and turnover increased organically by 11 per cent. For 2022, the Service Business represented 22 per cent of our turnover and 58 per cent of our operational earnings.
Stable order intake from business customers
The order intake from fleet customers continued at a stable level, while orders from private persons remained cautious. The order intake remained weak in Norway and Sweden but was stable in Western Europe. In the third quarter, the underlying order intake for new cars was 23 per cent lower than in the previous year.
Demand for used cars remained good, and we delivered underlying 3 per cent more used cars during the third quarter compared to the previous year.
New businesses join the Bilia family
We are extending our collaboration with Mercedes-Benz, and during the quarter we reached an agreement to acquire the operation of Bilcentergruppen Sörmland AB. The business operates in a full-service facility in Nyköping with sales of new and used Mercedes-Benz cars and transport vehicles, along with related service operations.
During the quarter, we established sales of new cars for XPENG in Bergen, Norway, and are now preparing to establish also in Gothenburg and Malmö, Sweden.
Sustainable total solutions
As one of the best service companies in the industry, we offer a customer experience of sustainable, attractive, innovative total solutions, while maintaining good growth and profitability.
One of our sustainability goals is to increase the percentage of used spare parts from car dismantling at our repair workshops, thus increasing utilisation of the vehicle throughout its life cycle. As society's focus on circularity increases, there will be greater demand for used spare parts. During the quarter, we co-located a car dismantling and repair operation south west of Oslo, Norway so that we can better utilise used spare parts when repairing cars. The repair workshops are key components in our circular business model.
Per Avander Managing Director and CEO
Group results
Net turnover and earnings
Third quarter 2023
Net turnover amounted to SEK 8,708 M (7,291). Adjusted for acquired and divested operations and for exchange rate fluctuations, net turnover increased by 11 per cent, mainly attributable to increased number of delivered cars. Exchange rate fluctuations had no significant impact on net turnover for the period compared to the previous year.
Operating profit amounted to SEK 288 M (386). The operating profit for the third quarter of 2022 included a profit from sale of operations of SEK 92 M.
Operational earnings amounted to SEK 335 M (334), and the operational margin was 3.8 per cent (4.6). Norway reported lower operational earnings attributable to the Car Business. Sweden and Western Europe reported higher operational earnings compared to the previous year.
The Service Business reported a result of SEK 205 M, compared to SEK 192 M the previous year, despite one less working day. The Car Business reported a result of SEK 151 M, compared to SEK 155 M the previous year. The lower result was attributable to Norway. The Fuel Business reported a result of SEK 6 M which was higher than the previous year.
The operation in Sweden reported a result of SEK 284 M (240). The margin was 5.0 per cent (5.5). The operation in Norway reported a result of SEK 23 M (76). The margin was 1.1 per cent (3.5). The operation in Western Europe reported a result of SEK 55 M (29). The margin was 5.2 per cent (3.9). The higher result for Sweden was attributable to the Car Business and mainly to used cars. The lower result for Norway was attributable to the Car Business. For Western Europe, the higher result was mainly attributable to the Car Business.
Bilia's 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.
Net financial items amounted to SEK –71 M (–27). The higher net financial items is explained by higher interest costs.
Tax amounted to SEK –48 M (–74), and the effective tax rate was 22 per cent (21).
Profit for the period amounted to SEK 169 M (285). The previous year's net profit included a profit after tax from sale of operations of SEK 80 M. Earnings per share amounted to SEK 1.83 (3.14). Exchange rate fluctuations did not have a material impact on net profit for the period compared to the previous year.
The number of employees decreased by 30 during the quarter and totalled 5,171.
The operating result for the Parent Company during the quarter amounted to SEK –39 M (–11). Compared to the previous year, the result has been affected by central marketing costs and the revaluation of endowment insurance for pensions, which last year improved the result.
Operational earnings and margin
Nine months 2023
Net turnover amounted to SEK 28,406 M (24,920). Adjusted for acquired and divested operations and for exchange rate fluctuations, net turnover increased by 11 per cent. Exchange rate fluctuations had no significant impact on net turnover for the period compared to the previous year.
Operating profit amounted to SEK 1,062 M (1,591). The operating profit for the first nine months of 2022 included a profit from sale of operations in Sweden and Norway of SEK 369 M.
Operational earnings amounted to SEK 1,209 M (1,332), and the operational margin was 4.3 per cent (5.3). Norway reported lower operational earnings attributable mainly to the Car Business while Sweden and Western Europe reported higher operational earnings compared to the previous year. Adjusted for divested operations, the Group's operational earnings was slightly below the previous year.
The Service Business reported a result of SEK 777 M, compared to SEK 793 M the previous year. Adjusted for divested operations in Sweden and Norway, the Service Business's result was higher than the previous year. The Car Business reported a result of SEK 508 M, compared to SEK 583 M the previous year. The lower result was attributable to sales of used cars. The Fuel Business reported a result of SEK 18 M which was unchanged compared to the previous year.
The operation in Sweden reported a result of SEK 1,002 M (925). The margin was 5.5 per cent (6.2). The operation in Norway reported a result of SEK 139 M (367). The margin was 1.9 per cent (4.8). The operation in Western Europe reported a result of SEK 162 M (102). The margin was 5.3 per cent (4.6). The higher result for Sweden was attributable to both the Service Business and the Car Business. The lower result for Norway was mainly attributable to the Car Business. For Western Europe, the higher result was mainly attributable to the Car Business.
Net financial items amounted to SEK –197 M (–59). The higher net financial items is explained by higher interest costs and that the net financial items for the previous year was positively affected by approximately SEK 30 M from a one-off item from shares in associated companies.
Tax amounted to SEK –185 M (–268), and the effective tax rate was 21 per cent (17). Adjusted for profit from the sale of operations in the previous year, the effective tax rate for previous year amounted to 20 per cent.
Net profit for the period amounted to SEK 682 M (1,264). The previous year's net profit included a profit after tax from sale of operations of SEK 346 M. Earnings per share amounted to SEK 7.41 (13.54). Exchange rate fluctuations did not have a material impact on net profit for the period compared to the previous year.
The number of employees increased by 61 compared to December 2022 and totalled 5,171.
The operating result for the Parent Company during the first nine months amounted to SEK –110 M (–63).
THE GROUP
Net turnover by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 5,649 | 4,360 | 18,100 | 14,966 | 24,036 | 20,902 |
| Norway | 2,005 | 2,196 | 7,224 | 7,721 | 10,871 | 11,368 |
| Western Europe | 1,047 | 728 | 3,059 | 2,208 | 3,897 | 3,046 |
| Parent Company, other | 7 | 7 | 23 | 25 | 27 | 29 |
| Total | 8,708 | 7,291 | 28,406 | 24,920 | 38,831 | 35,345 |
Operational earnings by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 284 | 240 | 1,002 | 925 | 1,381 | 1,304 |
| Norway | 23 | 76 | 139 | 367 | 319 | 547 |
| Western Europe | 55 | 29 | 162 | 102 | 214 | 154 |
| Parent Company, other | –27 | –11 | –94 | –62 | –131 | –99 |
| Total | 335 | 334 | 1,209 | 1,332 | 1,783 | 1,906 |
Operational margin by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| Per cent | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 5.0 | 5.5 | 5.5 | 6.2 | 5.7 | 6.2 |
| Norway | 1.1 | 3.5 | 1.9 | 4.8 | 2.9 | 4.8 |
| Western Europe | 5.2 | 3.9 | 5.3 | 4.6 | 5.5 | 5.0 |
| Total | 3.8 | 4.6 | 4.3 | 5.3 | 4.6 | 5.4 |
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.
Operating cash flow
Operating cash flow for the third quarter amounted to SEK 269 M (–133). After acquisitions and divestment of operations and changes in financial assets, cash flow for the quarter amounted to SEK 279 M (81). Operating cash flow for the first nine months amounted to SEK 480 M (461). After acquisitions and divestments of operations and changes in financial assets, the cash flow for the quarter amounted to SEK 486 M (1,106). The previous year's cash flow had been positively affected by a net SEK 644 M attributable to acquisitions and divestments of operations.
Financial position
The balance sheet total decreased by SEK 621 M during the year and amounted to SEK 19,380 M. The decrease was mainly attributable to inventory and trade receivables.
Equity decreased by SEK 237 M during the period, amounting to SEK 4,650 M. During the second quarter, a dividend of SEK 809 M was decided to the shareholders, of which SEK 404 M has been paid out. The total holding of own shares as of 30 September 2023 was 4,315,709 shares.
The equity/assets ratio amounted to 24 per cent (28). Net debt increased by SEK 688 M during the year and amounted to SEK 6,454 M. Excluding lease liabilities attributable to IFRS 16, net debt amounted to SEK 2,269 M, an increase of SEK 483 M since December 2022. The ratio of net debt to EBITDA, excluding IFRS 16, amounted to 1.1 times compared with 0.8 times at the end of 2022.
At the end of the quarter, SEK 844 M of Bilia's credit with the banks (Nordea and DNB) was utilised. The credit limit with Nordea and DNB totals SEK 2,300 M. During June, outstanding bond loans of SEK 800 M with regular maturity in October 2023 were renewed with a maturity of 5 years.
Investments excluding right-of-use assets
Acquisitions of non-current assets during the quarter amounted to SEK 155 M (57) excluding lease vehicles and SEK 434 M (305) including lease vehicles. By geographical market, the investments amounted to SEK 111 M (244) in Sweden, SEK 273 M (7) in Norway, SEK 6 M (35) in Western Europe and SEK 44 M (19) for the Parent Company and other central operations.
Net debt and net debt/EBITDA, excl. IFRS 16
Notable events
Events during the third quarter
• On 18 September Bilia reached an agreement to acquire Bilcentergruppen Sörmland AB. The operation is conducted in a strategically located facility in Nyköping. Bilcentergruppen Sörmland is a modern full-service facility for Mercedes-Benz cars and transport vehicles with associated sales of used cars and service operations. During 2022, Bilcentergruppen Sörmland's turnover amounted to approximately SEK 100 M. The number of employees were 24 at the end of 2022. The acquisition is expected to be effectuated on 1 November 2023.
Events during the first six months
- On 23 January Bilia signed an agreement with Great Wall Motor to be an importer and dealer in Norway. Great Wall Motor is a listed company in Hong Kong which in 2021 has sold 1.3 million vehicles and is now establishing in Europe.
- On 5 April Bilia announced that the collaboration with Nissan Sweden is expanding, sales and service of Nissan cars will be offered at several facilities in Sweden. From January 1, 2024, Nissan Sweden will
change to an agency model. The new distribution model will be implemented with Bilia as an agent for the brand. 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 Affärsmodell och strategi
• On 16 June Bilia announced that a repurchase had taken place of SEK 768 M of the total outstanding unsecured bond loan of SEK 800 M with regular maturity in October 2023. The repurchases took place at a price of 100.5 per cent. At the same time, a new senior unsecured bond loan was issued for an amount of SEK 800 M. The new bond loan has a variable interest rate of 3m STIBOR plus 275 bps and has a final maturity in June 2028. 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. 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.
Events after the balance sheet date
• There are no significant events after the balance sheet date. Bilköp
Further information about the above mentioned events along with other press information is available at bilia.com. Butik Tillbehör, reservdelar och e-handel.
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.
servicetekniker och reparationer
Bilköp
Butik serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Financing, insurance, the Bilia-card, service subscriptions, tyre hotels, paint shops, accessory and tyre and wheel sales. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Bilköp Finansiering, försäkring, biliakort, Bilköp Finansiering, försäkring, biliakort, Bilköp
Glascenter Glasbehandling, glasreparation Tillbehör, reservdelar och e-handel. Accessories, spare parts and e-commerce. Butik & däckförsäljning. & däckförsäljning. & däckförsäljning.
Servicecenter Originalservice, personlig Däckcenter Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Rekonditionering och AC- rengöring Tyre centres Tyre hotels, wheel change, tyre and wheel sales and workshop services. och vindrutebyten. Däckcenter och vindrutebyten. Däckcenter och vindrutebyten. Servicecenter Drivmedel & biltvätt.
Kundservice Telefon och online.
Hyrbilar Uthyrning och Flexlease
Bilvård Rekonditionering & AC- rengöring
Servicecenter Originalservice, personlig servicetekniker och reparationer
Originalservice, personlig servicetekniker och reparationer
Originalservice, personlig servicetekniker och reparationer
Däckcenter
Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Glasbehandling, glasreparation
Skadecenter Bilvård Rekonditionering och AC- rengöring Glasbehandling, glasreparation och vindrutebyten. Glass treatment, glass repair and windscreen replacement. Drivmedel och biltvätt. Drivmedel och biltvätt. Stationer Drivmedel och biltvätt.
Stationer Drivmedel och biltvätt.
Servicecenter Originalservice, personlig servicetekniker och reparationer
Service
Butik
repairs.
Glasbehandling, glasreparation och vindrutebyten.
Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning.
Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning.
Glascenter
Däckcenter Däckhotell, däckbyte, däckförsäljning och verkstadstjänster.
Bilköp
Stationer Drivmedel och biltvätt.
Tillbehör, reservdelar och e-handel.
Bilvård
Original service, personal service technicians and
Rekonditionering och AC- rengöring
Kundservice Telefon och online.
Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och
bildemontering.
Hyrbilar Uthyrning och Flexlease
Kundservice Telefon och online.
Stationer Drivmedel och biltvätt.
Bilvård
Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och
bildemontering.
Hyrbilar Uthyrning och Flexlease
Bilvård
Stationer Drivmedel och biltvätt.
Rekonditionering och AC- rengöring
Rekonditionering och AC- rengöring
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.
lackverkstad, buckelborttagning och bildemontering. Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och Däckhotell, däckbyte, däckförsäljning och verkstadstjänster. Reconditioning and Rekonditionering och AC- rengöring Rekonditionering och AC- rengöring Vägassistans, plåtverkstad, lackverkstad & buckelborttagning
bildemontering.
Kundservice Telefon och online. Kundservice Telefon och online. Kundservice Telefon och online. Reuse Bildemontering & bildelar Car dismantling Dismantling, reuse and sales
Telefon och online.
BILIA ÅRSREDOVISNING 2019 7
Higher results and good growth in the Service Business
Third quarter 2023
- Turnover amounted to SEK 1,933 M (1,712), an increase of 13 per cent.
- Operational earnings amounted to SEK 205 M (192).
- The margin was 10.6 per cent (11.2).
Nine months 2023
- Turnover amounted to SEK 6,380 M (5,801), an increase of 10 per cent.
- Operational earnings amounted to SEK 777 M (793).
- The margin was 12.2 per cent (13.7).
Turnover and earnings
Third quarter 2023
During the quarter, the turnover for the Service Business increased organically by 11 per cent. In Sweden and Norway, the organic growth during the quarter was 8 and 11 per cent respectively, while Western Europe's organic growth was as much as 29 per cent. The organic growth is adjusted for acquired and divested operations, exchange rate fluctuations and the number of working days compared to last year.
For the quarter, there was one less working day in all of the countries where we operate, compared to the previous year.
Growth in the Service Business
| Third quarter | Nine months | |||||||
|---|---|---|---|---|---|---|---|---|
| Per cent | Sweden | Norway | Western Europe |
Total | Sweden | Norway | Western Europe |
Total |
| Reported growth | 12.9 | 6.7 | 40.5 | 12.9 | 12.1 | –0.3 | 35.5 | 10.0 |
| Underlying growth | 6.9 | 9.1 | 26.9 | 9.0 | 7.2 | 10.6 | 27.6 | 9.5 |
| Calendar effect | 1.5 | 1.5 | 1.6 | 1.5 | 0.5 | 0.5 | 0.0 | 0.5 |
| Organic growth | 8.4 | 10.6 | 28.5 | 10.5 | 7.7 | 11.1 | 27.6 | 10.0 |
At the end of the quarter, the number of service subscriptions for our customers amounted to 117,000 (106,000 at year-end 2022) compared with our long-term target of 130,000. The number of wheels stored on behalf of our customers amounted to 388,000 (393,000 at year-end 2022) compared with our long-term target of 1,000,000.
Operational earnings amounted to SEK 205 M (192). In Sweden, operational earnings amounted to SEK 170 M (171). In Norway operational earnings amounted to SEK 23 M (15). In Western Europe, operational earnings amounted to SEK 12 M (6).
Operational earnings and margin
Turnover by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 1,276 | 1,131 | 4,324 | 3,858 | 5,829 | 5,363 |
| Norway | 507 | 474 | 1,607 | 1,611 | 2,250 | 2,254 |
| Western Europe | 150 | 107 | 449 | 332 | 592 | 476 |
| Total | 1,933 | 1,712 | 6,380 | 5,801 | 8,671 | 8,093 |
Operational earnings by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 170 | 171 | 616 | 594 | 900 | 879 |
| Norway | 23 | 15 | 108 | 160 | 177 | 227 |
| Western Europe | 12 | 6 | 53 | 39 | 69 | 55 |
| Total | 205 | 192 | 777 | 793 | 1,146 | 1,161 |
Margin by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| Per cent | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 13.2 | 15.1 | 14.2 | 15.4 | 15.4 | 16.4 |
| Norway | 4.6 | 3.1 | 6.7 | 9.9 | 7.9 | 10.1 |
| Western Europe | 8.3 | 5.8 | 11.8 | 11.8 | 11.6 | 11.5 |
| Total | 10.6 | 11.2 | 12.2 | 13.7 | 13.2 | 14.3 |
Good demand for used cars in the Car Business
Third quarter 2023
- Turnover amounted to SEK 6,920 M (5,686), an increase of 22 per cent.
- Operational earnings amounted to SEK 151 M (155).
- The margin was 2.2 per cent (2.7).
Nine months 2023
- Turnover amounted to SEK 22,665 M (19,475), an increase of 16 per cent.
- Operational earnings amounted to SEK 508 M (583).
- The margin was 2.2 per cent (3.0).
Turnover and earnings
Third quarter 2023
The Car Business's deliveries of new and used cars, adjusted for acquired and divested operations, were 16 and 3 per cent higher respectively compared with the previous year.
The order intake of new cars for the Group was 23 per cent lower than the previous year adjusted for acquired and divested operations, primarily attributable to Norway and Sweden. The order intake from fleet customers was at a stable level, while orders from private persons remained cautious due to high interest rates and high inflation. The order intake in Norway was 37 per cent lower adjusted for acquired and divested operations, as demand during the third quarter continued to be adversely affected by changes to tax regulations and price reductions for certain car brands. The rate of order cancellations during the first half of the year slowed during the third quarter. In Western Europe, the order intake decreased by 5 per cent compared to the previous year.
The order backlog amounted to 17,858 cars, which was a lower level than the previous year but at high level historically. For Sweden and Western Europe, the
order backlog remained at a high level from a historical perspective, while the order backlog for Norway was at a somewhat low level.
| Deliveries | Order backlog | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Third quarter Nine months |
|||||||||
| Number of | 2023 | 2022 | 2023 | 2022 | Oct. 22– Sept. 23 |
Full year 2022 |
30 Sept. 2023 |
30 Sept. 2022 |
|
| Sweden 1) | 6,608 | 4,822 | 22,164 | 19,372 | 30,821 | 28,029 | 12,201 | 17,428 | |
| Norway 2) | 1,571 | 1,651 | 6,235 | 6,264 | 10,010 | 10,039 | 2,409 | 8,712 | |
| Western Europe 3) | 1,368 | 1,026 | 4,474 | 3,068 | 5,653 | 4,247 | 3,248 | 3,289 | |
| Total | 9,547 | 7,499 | 32,873 | 28,704 | 46,484 | 42,315 | 17,858 | 29,429 |
New cars by geographic market
1) Acquired operations are included in deliveries during the quarter with 846, during the first nine months with 2,389 and with 1,014 in order backlog. Divested operations are included in deliveries in the previous year, during the quarter with 30, during the first nine months with 472 and with 130 in order backlog.
2) Acquired operations are included in deliveries during the quarter with 1, during the first nine months with 42 and with 89 in order backlog. Divested operations are included in deliveries in the previous year during the first nine months with 501.
3) Divested operations are included in deliveries in the previous year during the first nine months with 26.
Turnover during the quarter was, adjusted for acquired and divested operations and exchange rate fluctuations, 22 per cent higher than last year. The higher turnover was attributable to more delivered cars.
Operational earnings from sales of used cars remained on a good level and amounted to SEK 99 M (112). The lower result compared to the previous year was attributable to a lower gross profit margin.
Operational earnings from sales of new cars amounted to SEK 52 M (44). The higher result was explained by higher turnover compared to last year and was attributable to Sweden and Western Europe.
Operational earnings for the Car Business in Sweden amounted to SEK 109 M (71). The higher result was mainly attributable to sales of used cars that amounted to SEK 90 M (64). The number of used cars in stock was assessed to be at a good level at the end of the quarter.
Operational earnings for the Car Business in Norway amounted to SEK 0 M (62). The lower result was primarily attributable to lower turnover, lower gross profit margin and higher relative costs. The result from sales of used cars amounted to SEK 6 M (41). The lower result was attributable to lower gross profit margin. The market situation in Norway was challenging for many players during the third quarter.
The number of used cars in stock was assessed to be at a good level at the end of the quarter.
Operational earnings for the Car Business in Western Europe amounted to SEK 42 M (22). The higher result was mainly explained by higher turnover and higher gross profit margin for new cars. The result from sales of used cars amounted to SEK 3 M (7).
Deliveries of used cars by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| Number of | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden 1) | 7,144 | 6,600 | 22,946 | 21,214 | 29,633 | 27,901 |
| Norway 2) | 3,103 | 2,735 | 9,745 | 8,995 | 12,578 | 11,828 |
| Western Europe 3) | 679 | 720 | 2,264 | 2,236 | 2,877 | 2,849 |
| Total | 10,926 | 10,055 | 34,955 | 32,445 | 45,088 | 42,578 |
1) Acquired operations are included in deliveries during the quarter with 690 and during the first nine months with 2,105. Divested operations are included in deliveries in the previous year during the quarter with 114 and during the first nine months with 802.
2) Acquired operations are included in deliveries during the first nine months with 195. Divested operations are included in deliveries in the previous year during the first nine months with 579.
3) Divested operations are included in deliveries in the previous year during the first nine months with 106.
Operational earnings and margin
CAR BUSINESS
Turnover by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 4,381 | 3,160 | 13,920 | 10,971 | 18,391 | 15,442 |
| Norway | 1,624 | 1,887 | 6,077 | 6,562 | 9,330 | 9,815 |
| Western Europe | 915 | 639 | 2,668 | 1,942 | 3,382 | 2,656 |
| Total | 6,920 | 5,686 | 22,665 | 19,475 | 31,103 | 27,913 |
Operational earnings by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 109 | 71 | 368 | 313 | 459 | 404 |
| Norway | 0 | 62 | 31 | 208 | 142 | 320 |
| Western Europe | 42 | 22 | 109 | 62 | 146 | 99 |
| Total | 151 | 155 | 508 | 583 | 747 | 823 |
Margin by geographic market
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| Per cent | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Sweden | 2.5 | 2.2 | 2.6 | 2.9 | 2.5 | 2.6 |
| Norway | 0.0 | 3.3 | 0.5 | 3.2 | 1.5 | 3.3 |
| Western Europe | 4.6 | 3.5 | 4.1 | 3.2 | 4.3 | 3.7 |
| Total | 2.2 | 2.7 | 2.2 | 3.0 | 2.4 | 2.9 |
Higher prices in the Fuel Business
Third quarter 2023
- Turnover amounted to SEK 288 M (312), a decrease of 8 per cent.
- Operational earnings amounted to SEK 6 M (–2).
- The margin was 2.2 per cent (–0.6).
Nine months 2023
- Turnover amounted to SEK 852 M (998), a decrease of 15 per cent.
- Operational earnings amounted to SEK 18 M (18).
- The margin was 2.2 per cent (1.8).
Turnover and earnings
Third quarter 2023
The Fuel Business encompasses fuel stations and car washes and is concentrated to Sweden. The result for the quarter amounted to SEK 6 M (–2).
Operational earnings and margin
Fuel Business
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 | |
| Turnover, SEK M | 288 | 312 | 852 | 998 | 1,159 | 1,305 |
| Operational earnings, SEK M | 6 | –2 | 18 | 18 | 22 | 21 |
| Margin, per cent | 2.2 | –0.6 | 2.2 | 1.8 | 1.9 | 1.6 |
Sustainability
The automotive and transport industry is facing major challenges, for instance with the transition to non fossildependent vehicles. In order to reduce the impact on the climate and achieve the sustainability goals, all of society needs to help out: politicians, companies, organisations and individuals. We all have a responsibility. 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 theirs.
Our circular business model
Bilia is a full-service supplier 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.
The focus is on developing new services relating to reuse and renovation of spare parts. As part of this strategy, we have acquired car dismantling companies and rim repair companies. In addition to car dismantling and reuse of spare parts, dismantled parts are also recycled.
Governance
Bilia works according to the UN's global Sustainable Development Goals, in the 2030 Agenda. We use an integrated management system, certified under ISO 9001 and ISO 14001. Bilia should be a company for everybody, which is why work based on the company's Code of Conduct and policy on equality of treatment is important. Bilia's Code of Conduct is published at bilia.com.
Activities during the quarter related to Bilia's sustainability targets
The sustainability targets are the basis for specific improvement activities in this year's action plan. Examples of activities during the third quarter were:
- Sustainable growth –ongoing efforts regarding a double materiality analysis as a step in implementing CSRD reporting requirements for 2024.
- Circular economy –opening of Bilia's co-located car dismantling and repair workshop in south west Oslo, Norway. The shared location makes it easier to use spare parts in the repair workshop
- Human care a pulse survey has been introduced in Sweden in order to gauge and develop our employees' working climate throughout the year.
- Climate care ongoing efforts for a more comprehensive reporting of scope 3 emissions for the 2023 Sustainability Report.
Sustainable growth
Customer satisfaction to be 3 percentage points higher than the average for each brand in their country.
Circular economy
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 and Circular business model. The focus areas are linked to the following of the UN's global Sustainable Development Goals in the 2030 Agenda.
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 general economic environment, high inflation and rising interest rates, the events that have transpired in the wider world since publication of the annual report are not judged to entail any new material risks or changes in working methods compared with the description in the Annual Report for 2022. It is not possible to estimate the impact of the general economic environment, high inflation and rising interest rates on Bilia's future operations, but a future negative impact cannot be ruled out.
Related party transactions
For a description of related party transactions, see page 97, "Note 30" of the 2022 Annual Report.
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.
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.
Annual General Meeting 2023
The Annual General Meeting was held on 26 April 2023. The Board decided on a dividend of SEK 8.80 (8.00) per share, to be paid in four instalments of SEK 2.20 per share. The proposed dividend is in line with Bilia's policy that the dividend should be at least 50 per cent of earnings per share.
VISION AND BUSINESS IDEA CULTURE AND CORE VALUES CUSTOMER PROMISE
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.
Dedication, Competence, Genuine, Respect.
At Bilia we are engaged in the meeting with customers, with each other and with suppliers. Competence gives solutions and suggestions that benefit the customer the most. Being genuine and showing respect build confidence in Bilia and our employees.
A better experience.
Our general goal is to create an experience that exceeds the customer's expectations, and adds value that distinguishes Bilia from its competitors.
OUR CAR BRANDS
Consolidated Statement of Income and Other Comprehensive Income
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Net turnover | 8,708 | 7,291 | 28,406 | 24,920 | 38,831 | 35,345 |
| Costs of goods sold | –7,342 | –6,038 | –23,914 | –20,583 | –32,618 | –29,287 |
| Gross profit | 1,366 | 1,253 | 4,492 | 4,337 | 6,213 | 6,058 |
| Other operating income | 3 | 97 | 35 | 413 | 37 | 415 |
| Selling and administrative expenses | –1,080 | –960 | –3,452 | –3,140 | –4,640 | –4,328 |
| Other operating expenses | –1 | –4 | –13 | –19 | –37 | –43 |
| Operating profit 1) | 288 | 386 | 1,062 | 1,591 | 1,573 | 2,102 |
| Financial income | 10 | 2 | 13 | 3 | 14 | 4 |
| Financial expenses | –103 | –44 | –272 | –133 | –332 | –193 |
| Profit from shares in associated companies | 22 | 15 | 62 | 71 | 80 | 89 |
| Profit before tax | 216 | 359 | 866 | 1,532 | 1,336 | 2,002 |
| Tax | –48 | –74 | –185 | –268 | –297 | –380 |
| Net profit for the period | 169 | 285 | 682 | 1,264 | 1,040 | 1,622 |
| Other comprehensive income | ||||||
| Items that can be reclassified to profit or loss | ||||||
| Translation differences attributable to foreign | ||||||
| operations | –6 | 24 | –24 | 60 | 6 | 90 |
| Change in fair value of cash flow hedges, | ||||||
| net after tax | –18 | — | –58 | — | –9 | 49 |
| Other comprehensive income after tax | –24 | 24 | –82 | 60 | –3 | 139 |
| Comprehensive income for the period | 145 | 309 | 600 | 1,324 | 1,037 | 1,761 |
| Net profit attributable to: | ||||||
| - Parent Company's shareholders | 169 | 285 | 682 | 1,264 | 1,040 | 1,622 |
| - Non-controlling interests | 0 | 0 | 0 | 0 | 0 | 0 |
| Comprehensive income attributable to: | ||||||
| - Parent Company's shareholders | 145 | 309 | 600 | 1,324 | 1,037 | 1,761 |
| - Non-controlling interests | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic earnings per share, SEK | 1.83 | 3.14 | 7.41 | 13.54 | 11.30 | 17.43 |
| Diluted earnings per share, SEK | 1.83 | 3.12 | 7.40 | 13.52 | 11.29 | 17.41 |
| Average number of shares, '000 | 91,984 | 91,984 | 91,984 | 93,365 | 91,984 | 93,017 |
| Average number of shares, after dilution, '000 | 92,260 | 92,091 | 92,176 | 93,476 | 92,111 | 93,126 |
| 1) Amortisation and depreciation according to plan by asset class: | ||||||
| – Intellectual property | –53 | –45 | –156 | –132 | –204 | –180 |
| – Land and buildings | –26 | –18 | –67 | –55 | –85 | –73 |
| – Equipment, tools, fixtures and fittings | –29 | –34 | –104 | –103 | –141 | –140 |
| – Leased vehicles | –81 | –87 | –294 | –305 | –376 | –387 |
| – Right-of-use assets | –149 | –131 | –444 | –398 | –577 | –531 |
| Total | –337 | –315 | –1,066 | –993 | –1,384 | –1,311 |
Consolidated Statement of Financial Position, Summary
| SEK M | 30 September 2023 |
31 December 2022 |
30 September 2022 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | |||
| Intellectual property | 1,017 | 1,157 | 941 |
| Goodwill | 1,519 | 1,520 | 1,269 |
| 2,536 | 2,677 | 2,210 | |
| Property, plant and equipment | |||
| Leased vehicles | 2,536 | 2,390 | 2,266 |
| Right-of-use assets | 4,018 | 3,855 | 3,227 |
| Other tangible assets | 1,868 | 1,784 | 1,706 |
| 8,422 | 8,029 | 7,199 | |
| Financial assets | 706 | 700 | 590 |
| Deferred tax assets | 178 | 172 | 177 |
| Total non-current assets | 11,842 | 11,578 | 10,176 |
| Current assets | |||
| Inventories | 4,968 | 5,247 | 3,712 |
| Other receivables | 2,236 | 2,720 | 1,873 |
| Cash and cash equivalents | 333 | 456 | 428 |
| Total current assets | 7,537 | 8,423 | 6,013 |
| TOTAL ASSETS | 19,380 | 20,001 | 16,189 |
| Equity and liabilities | |||
| Equity | 4,650 | 4,887 | 4,475 |
| Non-current liabilities | |||
| Bond issue | 1,294 | 498 | 1,297 |
| Interest-bearing liabilities | 37 | 47 | 215 |
| Lease liabilities | 3,681 | 3,529 | 2,831 |
| Other liabilities and provisions | 2,399 | 2,272 | 1,978 |
| 7,411 | 6,346 | 6,321 | |
| Current liabilities | |||
| Bond issue | 32 | 800 | — |
| Interest-bearing liabilities | 1,652 | 1,328 | 253 |
| Lease liabilities | 809 | 737 | 537 |
| Other liabilities and provisions | 4,826 | 5,903 | 4,603 |
| 7,319 | 8,768 | 5,393 | |
| TOTAL EQUITY AND LIABILITIES | 19,380 | 20,001 | 16,189 |
Statement of Changes in Group Equity, Summary
| Nine months | Full year | Nine months | |
|---|---|---|---|
| SEK M | 2023 | 2022 | 2022 |
| Opening balance | 4,887 | 4,417 | 4,417 |
| Decided dividend | –809 | –740 | –740 |
| Incentive programme | 3 | 6 | 5 |
| Buy-back of own shares | — | –525 | –525 |
| Revaluation of put option | –31 | –32 | –6 |
| Comprehensive income for the period | 600 | 1,761 | 1,324 |
| Equity at end of period | 4,650 | 4,887 | 4,475 |
| Equity attributable to: | |||
| - Parent Company's shareholders | 4,650 | 4,887 | 4,475 |
| - Non-controlling interests | 0 | 0 | 0 |
Consolidated Statement of Cash Flows
| SEK M | Third quarter | Nine months | Oct. 22– | Full year | ||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 | |
| Operating activities | ||||||
| Profit before tax | 216 | 359 | 866 | 1,532 | 1,336 | 2,002 |
| Depreciation and impairment losses | 337 | 314 | 1,066 | 993 | 1,426 | 1,353 |
| Other items not affecting cash | –35 | –122 | –147 | –482 | –157 | –492 |
| Tax paid | –68 | –80 | –364 | –320 | –535 | –491 |
| Change in inventories | 33 | –147 | 142 | –129 | –719 | –990 |
| Change in operating receivables | 153 | –74 | 467 | –138 | –413 | –1,018 |
| Change in operating liabilities | –64 | –263 | –873 | –945 | 385 | 312 |
| Cash flow from operating activities | 573 | –13 | 1,157 | 511 | 1,322 | 676 |
| Investing activities | ||||||
| Acquisition of non-current assets (intangible and | ||||||
| tangible) | –155 | –57 | –320 | –289 | –421 | –390 |
| Disposal of non-current assets (intangible and | ||||||
| tangible) | 16 | 0 | 41 | 19 | 41 | 19 |
| Acquisition of leased vehicles | –279 | –248 | –920 | –725 | –1,343 | –1,148 |
| Disposal of leased vehicles | 114 | 185 | 522 | 945 | 765 | 1,188 |
| Operating cash flow | 269 | –133 | 480 | 461 | 365 | 345 |
| Investment in financial assets | — | 0 | –2 | –2 | –2 | –1 |
| Disposal of financial assets | 9 | 1 | 15 | 3 | 15 | 3 |
| Acquisition of subsidiary/operation, net | 1 | –43 | –7 | –153 | –666 | –811 |
| Disposal of subsidiary/operation, net | — | 256 | — | 797 | 0 | 797 |
| Cash flow from investing activities | –293 | 94 | –672 | 595 | –1,610 | –343 |
| Financing activities | ||||||
| Borrowings | 16 | — | 840 | 62 | 889 | 111 |
| Repayment of loans | –4 | –32 | –779 | –32 | –747 | 0 |
| Repayment of lease liabilities | –134 | –244 | –442 | –456 | –603 | –618 |
| Net change in short-term credit facilities | 45 | –10 | 356 | –121 | 1,412 | 935 |
| Buy-back of own shares | — | –7 | — | –525 | 0 | –525 |
| Dividend paid to the company's shareholders | –202 | –184 | –589 | –372 | –773 | –556 |
| Cash flow from financing activities | –280 | –477 | –614 | –1,444 | 178 | –653 |
| Change in cash and cash equivalents, | ||||||
| excluding translation differences | 0 | –396 | –128 | –338 | –110 | –320 |
| Exchange difference in cash and cash equivalents | –4 | 4 | 5 | 12 | 14 | 22 |
| Change in cash and cash equivalents | –4 | –392 | –123 | –326 | –96 | –298 |
| Cash and cash equivalents at start of period | 337 | 820 | 456 | 754 | 428 | 754 |
| Cash and cash equivalents at end of period | 333 | 428 | 333 | 428 | 333 | 456 |
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 2023
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
Valuation principles and classifications of Bilia's financial instruments as described in the annual report for 2022 have been applied consistently during the reporting period.
To hedge electricity costs, Bilia has decided to use electricity derivatives to even out price variations on the electricity market. Bilia hedges gradually up to five years and builds up the volume of electricity contracts for each delivery date. The hedges meet the requirements for effectiveness, which means that the changes in value are recognised in other comprehensive income. The forward agreements used to hedge contracted purchases of electricity are classified as cash flow hedges and amounted to a debt of SEK 11 M.
Bilia's financial instruments in the form of currency
derivatives are valued at fair value over the statement of income and are valued according to valuation level 2. The value of the currency derivatives was not material and did not constitute a significant item in the statement of financial position for the Group. Valuation of the currency derivatives at fair value has resulted in a cost of SEK 3 M, which was matched by a cost for the revaluation of assets in foreign currency. The effect on the Group's result was therefore SEK 0 M.
Bilia's financial instruments valued at fair value over equity consist of put/call options issued in connection with acquisitions and are valued at fair value based on future exercise price according to valuation level 3. The options are reported as provisions in the statement of financial position and amounted to SEK 156 M.
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 in the previous year includes profit from the divestment of Volvo and Renault facilities in Sweden and Norway.
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Operational earnings | 335 | 334 | 1,209 | 1,332 | 1,783 | 1,906 |
| – Result from sale of operations | — | 92 | — | 369 | –2 | 368 |
| – Structural costs etc. | — | 0 | –7 | 8 | –24 | –9 |
| – Acquisition-related costs and value adjustments | — | –1 | — | –3 | –2 | –5 |
| – Amortisation of surplus values | –47 | –39 | –140 | –115 | –183 | –158 |
| Operating profit | 288 | 386 | 1,062 | 1,591 | 1,573 | 2,102 |
Note 4 Group's operating segments
Third quarter 2023
| SEK M | Service | Car | Fuel | Total | Segment reconciliation |
Group |
|---|---|---|---|---|---|---|
| Net turnover | ||||||
| External sales | 1,493 | 6,920 | 288 | 8,701 | 7 | 8,708 |
| Internal sales | 440 | — | — | 440 | –440 | — |
| Total net turnover | 1,933 | 6,920 | 288 | 9,141 | –433 | 8,708 |
| Depreciation/amortisation | –134 | –185 | –1 | –320 | –17 | –337 |
| Operational earnings/Operating profit | 205 | 151 | 6 | 362 | –74 | 288 |
| Revenue and costs that affect comparability: | ||||||
| – Structural costs etc | — | — | — | — | — | — |
| – Acquisition-related costs and value adjustments | — | — | — | — | — | — |
| – Amortisation of surplus values | –25 | –22 | — | –47 | — | –47 |
| Total | –25 | –22 | — | –47 | — | –47 |
| Service | Car | |||||
|---|---|---|---|---|---|---|
| SEK M | Sweden | Norway Western Europe | Sweden | Norway Western Europe | ||
| Net turnover | ||||||
| External sales | 981 | 381 | 131 | 4,381 | 1,624 | 915 |
| Internal sales | 295 | 126 | 19 | — | — | — |
| Total net turnover | 1,276 | 507 | 150 | 4,381 | 1,624 | 915 |
| Depreciation/amortisation | –90 | –31 | –13 | –133 | –41 | –11 |
| Operational earnings | 170 | 23 | 12 | 109 | 0 | 42 |
| Revenue and costs that affect comparability: | ||||||
| – Structural costs etc | — | — | — | — | — | — |
| – Acquisition-related costs and value adjustments | — | — | — | — | — | — |
| – Amortisation of surplus values | –13 | –5 | –7 | –11 | –5 | –6 |
| Total | –13 | –5 | –7 | –11 | –5 | –6 |
Third quarter 2022
| Segment | |||||||
|---|---|---|---|---|---|---|---|
| SEK M | Service | Car | Fuel | Total | reconciliation | Group | |
| Net turnover | |||||||
| External sales | 1,286 | 5,686 | 312 | 7,284 | 7 | 7,291 | |
| Internal sales | 426 | — | — | 426 | –426 | — | |
| Total net turnover | 1,712 | 5,686 | 312 | 7,710 | –419 | 7,291 | |
| Depreciation/amortisation | –126 | –172 | –1 | –299 | –16 | –315 | |
| Operational earnings/Operating profit | 192 | 155 | –2 | 345 | 41 | 386 | |
| Revenue and costs that affect comparability: | |||||||
| – Result from sale of operations | 46 | 46 | — | 92 | — | 92 | |
| – Structural costs etc. | 0 | 0 | — | 0 | — | 0 | |
| – Acquisition-related costs and value adjustments | –1 | 0 | — | –1 | — | –1 | |
| – Amortisation of surplus values | –18 | –21 | — | –39 | — | –39 | |
| Total | 27 | 25 | — | 52 | — | 52 |
| Service | Car | |||||
|---|---|---|---|---|---|---|
| SEK M | Sweden | Norway Western Europe | Sweden | Norway Western Europe | ||
| Net turnover | ||||||
| External sales | 888 | 309 | 89 | 3,160 | 1,887 | 639 |
| Internal sales | 243 | 165 | 18 | — | — | — |
| Total net turnover | 1,131 | 474 | 107 | 3,160 | 1,887 | 639 |
| Depreciation/amortisation | –76 | –38 | –12 | –124 | –36 | –12 |
| Operational earnings | 171 | 15 | 6 | 71 | 62 | 22 |
| Revenue and costs that affect comparability: | ||||||
| – Result from sale of operations | –2 | 48 | — | –2 | 48 | — |
| – Structural costs etc. | 0 | 0 | — | 0 | 0 | — |
| – Acquisition-related costs and value adjustments | 0 | –1 | — | 0 | 0 | — |
| – Amortisation of surplus values | –8 | –5 | –5 | –9 | –6 | –6 |
| Total | –10 | 42 | –5 | –11 | 42 | –6 |
Nine months 2023
| SEK M | Service | Car | Fuel | Total | Segment reconciliation |
Group |
|---|---|---|---|---|---|---|
| Net turnover | ||||||
| External sales | 4,866 | 22,665 | 852 | 28,383 | 23 | 28,406 |
| Internal sales | 1,514 | — | — | 1,514 | –1,514 | — |
| Total net turnover | 6,380 | 22,665 | 852 | 29,897 | –1,491 | 28,406 |
| Depreciation/amortisation | –414 | –595 | –4 | –1,013 | –53 | –1,066 |
| Operational earnings/Operating profit | 777 | 508 | 18 | 1,303 | –241 | 1,062 |
| Revenue and costs that affect comparability: | ||||||
| – Structural costs etc | –3 | –2 | — | –5 | –2 | –7 |
| – Acquisition-related costs and value adjustments | — | — | — | — | — | — |
| – Amortisation of surplus values | –75 | –65 | — | –140 | — | –140 |
| Total | –78 | –67 | — | –145 | –2 | –147 |
| SEK M Net turnover |
Service | Car | ||||
|---|---|---|---|---|---|---|
| Sweden | Norway Western Europe | Sweden | Norway Western Europe | |||
| External sales | 3,328 | 1,147 | 391 | 13,920 | 6,077 | 2,668 |
| Internal sales | 996 | 460 | 58 | — | — | — |
| Total net turnover | 4,324 | 1,607 | 449 | 13,920 | 6,077 | 2,668 |
| Depreciation/amortisation | –269 | –107 | –38 | –397 | –164 | –34 |
| Operational earnings | 616 | 108 | 53 | 368 | 31 | 109 |
| Revenue and costs that affect comparability: | ||||||
| – Structural costs etc | –2 | — | –1 | –2 | — | — |
| – Acquisition-related costs and value adjustments | — | — | — | — | — | — |
| – Amortisation of surplus values | –39 | –16 | –20 | –33 | –15 | –17 |
| Total | –41 | –16 | –21 | –35 | –15 | –17 |
Nine months 2022
| Segment | ||||||
|---|---|---|---|---|---|---|
| SEK M | Service | Car | Fuel | Total | reconciliation | Group |
| Net turnover | ||||||
| External sales | 4,422 | 19,475 | 998 | 24,895 | 25 | 24,920 |
| Internal sales | 1,379 | — | — | 1,379 | –1,379 | — |
| Total net turnover | 5,801 | 19,475 | 998 | 26,274 | –1,354 | 24,920 |
| Depreciation/amortisation | –376 | –565 | –3 | –944 | –49 | –993 |
| Operational earnings/Operating profit | 793 | 583 | 18 | 1,394 | 197 | 1,591 |
| Revenue and costs that affect comparability: | ||||||
| – Result from sale of operations | 101 | 216 | 52 | 369 | — | 369 |
| – Structural costs etc. | 5 | 4 | — | 9 | –1 | 8 |
| – Acquisition-related costs and value adjustments | –3 | 0 | — | –3 | — | –3 |
| – Amortisation of surplus values | –57 | –58 | — | –115 | — | –115 |
| Total | 46 | 162 | 52 | 260 | –1 | 259 |
| SEK M | Service | Car | ||||
|---|---|---|---|---|---|---|
| Sweden | Norway Western Europe | Sweden | Norway Western Europe | |||
| Net turnover | ||||||
| External sales | 2,997 | 1,159 | 266 | 10,971 | 6,562 | 1,942 |
| Internal sales | 861 | 452 | 66 | — | — | — |
| Total net turnover | 3,858 | 1,611 | 332 | 10,971 | 6,562 | 1,942 |
| Depreciation/amortisation | –229 | –110 | –37 | –378 | –151 | –36 |
| Operational earnings | 594 | 160 | 39 | 313 | 208 | 62 |
| Revenue and costs that affect comparability: | ||||||
| – Result from sale of operations | 53 | 48 | — | 168 | 48 | — |
| – Structural costs etc. | — | 5 | — | — | 4 | — |
| – Acquisition-related costs and value adjustments | –1 | –2 | — | 0 | –1 | 1 |
| – Amortisation of surplus values | –26 | –14 | –17 | –26 | –15 | –17 |
| Total | 26 | 37 | –17 | 142 | 36 | –16 |
Note 5 Acquisitions and divestments of operations
Acquisitions and divestments in 2023
There have been no acquisitions or divestments during 2023.
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 customer relations and distribution rights of NOK 17 M respectively NOK 22 M are reported as intangible assets and are amortised over 10 respectively 5 years.
On 1 July Bilia acquired 50.1 per cent of Bil1Din Holding AS in Norway which conducts car dismantling operations. Bilia has committed to buy another 49.9 per cent of the shares. The obligation is recognised as a financial liability, which replaces the item Non-controlling interests within equity. The business acquired reported a turnover of about NOK 55 M for 2021, with an operating margin of 1.7 per cent. The number of employees is about 30 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. Reported goodwill amounts to NOK 49 M.
On 1 November Bilia acquired M Bilar Group AB, which conducts sales and service operations for the car brands BMW and MINI. The acquired operation had a turnover of approximately SEK 1,3 Bn for 2021 with an average operating margin for the past three years of 4.5 per cent. The number of employees was 101 people by the end of 2021. Acquisition-related expenses attributable to the acquisition amounted to SEK 1 M and relate to fees to consultants in connection with due diligence and have been reported as other operating expenses. Acquired customer relations of SEK 141 M are reported as intangible assets and are amortised over 10 years. Acquired goodwill amounts to SEK 147 M.
On 15 December Bilia acquired Söderbergs Personbilar i Norrköping AB, which conducts sales and service operations for the car brands Volkswagen, Audi, Skoda, Seat and Cupra cars as well as Volkswagen transport
vehicles. The acquired operation had a turnover of approximately SEK 1 Bn for 2021 and reported an operating margin of 3.3 per cent. The number of employees was 210 people by the end of 2021. Acquisition-related expenses attributable to the acquisition amounted to SEK 1 M and relate to fees to consultants in connection with due diligence and have been reported as other operating expenses. Acquired customer relations and distribution rights of SEK 52 M respectively SEK 37 M are reported as intangible assets and are amortised over 10 respectively 5 years. Acquired goodwill amounts to SEK 86 M.
The acquisitions of LB´s Lastbilar AB and Kokstad Autosenter AS, DäckAtt AB, Hellgrens Lastvagnsservice AB, Skellefteå Billackering AB and Holmgrens Truck-Motor AB have not had any significant impact on the Group's financial position.
All acquisition analyses are preliminary pending final completion of the financial statements for the day of taking possession.
Divestments in 2022
During the year, eleven facilities in Sweden that sell new cars, used cars and service operations for Volvo and Renault and three facilities in Norway that sell new cars, used cars and service operations for Volvo 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 i Dalarna AB. On 1 June, Bilia sold a facility in Stenungsund to Stendahls Bil AB. On 30 September, Bilia sold one facility in Uppsala to Bilbolaget Invest Sundsvall AB. On 1 July, Bilia sold three facilities in Oslo to Volvo Car Stor-Oslo AS. The divested operations have reported turnover in the region of SEK 4 Bn and an operational profit of approximately SEK 325 M yearly for the past two years. The divestments resulted in a gain of SEK 222 M, reported in the first quarter, SEK 55 M in the second quarter, SEK 92 M in the third quarter and a loss of SEK 1 M in the fourth quarter which is reported as Other operating income.
On 1 February, Bilia sold the remaining four BMW and 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.
Note 6 Specification of interest-bearing net debt and EBITDA
Specification of interest-bearing net debt
| SEK M | 30 September 2023 |
31 December 2022 |
30 September 2022 |
|---|---|---|---|
| Current interest-bearing liabilities | 1,846 | 2,261 | 252 |
| Non-current interest-bearing liabilities | 1,480 | 700 | 1,515 |
| Lease liabilities IFRS 16 | 4,184 | 3,980 | 3,369 |
| Cash and cash equivalents | –333 | –456 | –428 |
| Interest-bearing assets | –86 | –129 | –8 |
| Shares in associated companies | –639 | –590 | –573 |
| Net debt at end of the period | 6,454 | 5,766 | 4,127 |
| Net debt at end of the period, excluding IFRS 16 | 2,269 | 1,786 | 758 |
The ratio of net debt to EBITDA
| SEK M | Oct. 22– Sept. 23 |
Full year 2022 |
Oct. 21– Sept. 22 |
|---|---|---|---|
| Operating profit | 1,573 | 2,102 | 2,038 |
| Result from sale of operations, structural costs, acquisition costs and impairment losses | 29 | –353 | –302 |
| Total depreciation and amortisation | 1,385 | 1,311 | 1,360 |
| – depreciation of leased vehicles with repurchase agreements | –289 | –301 | –349 |
| EBITDA | 2,697 | 2,759 | 2,747 |
| Net debt to EBITDA ratio, times | 2.4 | 2.1 | 1.5 |
| Operating profit excluding IFRS 16 | 1,555 | 2,031 | 1,968 |
| Result from sale of operations, structural costs, acquisition costs and impairment losses | 29 | –353 | –302 |
| Total depreciation and amortisation | 1,385 | 1,311 | 1,360 |
| – depreciation of leased vehicles with repurchase agreements | –289 | –301 | –349 |
| – depreciation of right-of-use assets | –577 | –531 | –532 |
| EBITDA excluding IFRS 16 | 2,103 | 2,157 | 2,145 |
| Net debt to EBITDA ratio excluding IFRS 16, times | 1.1 | 0.8 | 0.4 |
Income Statement for Parent Company
| Third quarter | Nine months | Oct. 22– | Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2023 | 2022 | 2023 | 2022 | Sept. 23 | 2022 |
| Net turnover | 193 | 171 | 588 | 515 | 760 | 687 |
| Administrative expenses | –231 | –182 | –698 | –578 | –908 | –788 |
| Operating result 1) | –39 | –11 | –110 | –63 | –149 | –101 |
| Result from financial items | ||||||
| Profit from shares in Group companies | — | — | — | 368 | –11 | 357 |
| Interest income from Group companies | 31 | 12 | 90 | 32 | 111 | 53 |
| Other interest income and similar line items | 4 | 1 | 5 | 1 | 5 | 1 |
| Interest expenses to Group companies | –6 | –1 | –9 | –1 | –12 | –5 |
| Interest expenses and similar line items | –49 | –13 | –115 | –38 | –135 | –58 |
| Result after financial items | –60 | –12 | –139 | 299 | –191 | 247 |
| Appropriations | — | — | 2 | — | 1,050 | 1,048 |
| Result before tax | –60 | –12 | –137 | 299 | 858 | 1,295 |
| Tax | 4 | –5 | 1 | –10 | –196 | –207 |
| Net result for the period | –56 | –17 | –136 | 289 | 663 | 1,088 |
| 1) Amortisation and depreciation according to plan by asset class: | ||||||
| - Intellectual property | — | — | — | — | — | — |
| - Buildings | –6 | –4 | –18 | –18 | –25 | –24 |
| - Equipment, tools, fixtures and fittings | –1 | –2 | –2 | –2 | –2 | –2 |
| Total | –7 | –6 | –20 | –20 | –27 | –26 |
Balance Sheet for Parent Company, Summary
| SEK M | 30 September 2023 |
31 December 2022 |
30 September 2022 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 202 | 193 | 178 |
| Shares in Group companies | 3,139 | 3,136 | 2,423 |
| Other non-current assets | 70 | 69 | 76 |
| Total non-current assets | 3,411 | 3,398 | 2,677 |
| Current assets | |||
| Receivables from Group companies | 1,288 | 2,145 | 423 |
| Other receivables | 298 | 189 | 278 |
| Cash and cash equivalents | 11 | 65 | 631 |
| Total current assets | 1,597 | 2,399 | 1,332 |
| TOTAL ASSETS | 5,008 | 5,797 | 4,009 |
| Equity and liabilities | |||
| Equity | 470 | 1,413 | 612 |
| Untaxed reserves | 1,417 | 1,418 | 1,218 |
| Provisions | |||
| Deferred tax liability | 10 | 10 | 14 |
| 10 | 10 | 14 | |
| Non-current liabilities | |||
| Bond issue | 1,294 | 498 | 1,297 |
| Other liabilities | 148 | 156 | 165 |
| 1,442 | 654 | 1,462 | |
| Current liabilities | |||
| Bond issue | 32 | 800 | — |
| Short-term interest bearing liabilities | 845 | 703 | — |
| Liabilities to Group companies | 144 | 240 | 95 |
| Other liabilities | 648 | 559 | 608 |
| 1,669 | 2,302 | 703 | |
| TOTAL EQUITY AND LIABILITIES | 5,008 | 5,797 | 4,009 |
The Group
| Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | |
|---|---|---|---|---|---|---|---|---|
| Net turnover, SEK M | 8,634 | 8,684 | 8,945 | 7,291 | 10,425 | 9,871 | 9,826 | 8,708 |
| EBITDA, SEK M | 776 | 715 | 709 | 547 | 788 | 670 | 677 | 562 |
| EBITDA excl. IFRS 16, SEK M | 626 | 559 | 561 | 399 | 638 | 503 | 550 | 412 |
| Operational earnings, SEK M | 558 | 500 | 498 | 334 | 574 | 431 | 444 | 335 |
| Operational margin, % | 6.5 | 5.8 | 5.6 | 4.6 | 5.5 | 4.4 | 4.5 | 3.8 |
| Operating profit, SEK M | 447 | 684 | 521 | 386 | 511 | 380 | 394 | 288 |
| Operating margin, % | 5.2 | 7.9 | 5.8 | 5.3 | 4.9 | 3.8 | 4.0 | 3.3 |
| Profit before tax, SEK M | 424 | 682 | 491 | 359 | 470 | 320 | 330 | 216 |
| Profit/loss for the period, SEK M | 349 | 594 | 385 | 285 | 358 | 251 | 262 | 169 |
| The ratio of net debt to EBITDA excl. IFRS 16, times 1) | 0.2 | 0.1 | 0.2 | 0.4 | 0.8 | 1.1 | 1.1 | 1.1 |
| Return on capital employed, % 1) | 20.5 | 22.0 | 21.9 | 21.4 | 21.5 | 17.4 | 15.7 | 14.3 |
| Return on equity, % 1) | 33.8 | 37.4 | 37.1 | 35.8 | 36.2 | 27.8 | 25.5 | 22.4 |
| Equity/assets ratio, % | 26 | 28 | 25 | 28 | 24 | 26 | 23 | 24 |
| Earnings per share, SEK | 3.60 | 6.25 | 4.15 | 3.14 | 3.89 | 2.73 | 2.85 | 1.83 |
| Equity per share, SEK | 46 | 52 | 45 | 49 | 53 | 55 | 49 | 51 |
| Average number of shares, '000 | 96,894 | 95,170 | 92,976 | 91,984 | 91,984 | 91,984 | 91,984 | 91,984 |
| Number of shares, '000 | 95,777 | 93,947 | 91,984 | 91,984 | 91,984 | 91,984 | 91,984 | 91,984 |
| Holdings of own shares, '000 2) | 7,023 | 8,853 | 4,316 | 4,316 | 4,316 | 4,316 | 4,316 | 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
| Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | |
|---|---|---|---|---|---|---|---|---|
| Turnover, SEK M | 2,257 | 2,056 | 2,033 | 1,712 | 2,291 | 2,257 | 2,190 | 1,933 |
| Operational earnings, SEK M | 377 | 315 | 286 | 192 | 368 | 297 | 275 | 205 |
| Margin, % | 16.7 | 15.3 | 14.1 | 11.2 | 16.1 | 13.2 | 12.5 | 10.6 |
| Reported growth in Sweden and Norway, % | 15.3 | 11.3 | 8.3 | –1.5 | –1.5 | 8.6 | 6.1 | 11.0 |
| Organic growth in Sweden and Norway, % | –4.7 | –5.0 | 0.5 | 3.8 | 9.6 | 8.6 | 9.1 | 9.1 |
Business area – Car Business
| Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | |
|---|---|---|---|---|---|---|---|---|
| Turnover, SEK M | 6,588 | 6,796 | 6,993 | 5,686 | 8,438 | 7,913 | 7,832 | 6,920 |
| Operational earnings, SEK M | 207 | 189 | 239 | 155 | 240 | 158 | 198 | 151 |
| Margin, % | 3.1 | 2.8 | 3.4 | 2.7 | 2.8 | 2.0 | 2.5 | 2.2 |
| New cars delivered, number | 11,515 | 10,882 | 10,323 | 7,499 | 13,611 | 11,671 | 11,655 | 9,547 |
| Order backlog of new cars, number | 22,775 | 27,178 | 29,023 | 29,429 | 26,325 | 23,536 | 19,847 | 17,858 |
| Used cars delivered, number | 11,682 | 11,174 | 11,216 | 10,055 | 10,133 | 12,300 | 11,729 | 10,926 |
Business area – Fuel Business
| Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | |
|---|---|---|---|---|---|---|---|---|
| Turnover, SEK M | 349 | 327 | 359 | 312 | 307 | 277 | 287 | 288 |
| Operational earnings, SEK M | 8 | 15 | 5 | –2 | 3 | 8 | 5 | 6 |
| Margin, % | 2.3 | 4.7 | 1.3 | –0.6 | 1.0 | 2.7 | 1.6 | 2.2 |
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 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.
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 Tuesday 24 October 2023 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. If you wish to participate via webcast, please use the link below. Via the webcast you can ask written questions. https://ir.financialhearings.com/bilia-q3-2023
If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=5007817
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]
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.
Translation
This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter should prevail.
Calendar
| Interim Report October–December 2023: |
7 February 2024 |
|---|---|
| Interim Report January–March 2024: |
24 April 2024 |
| Interim Report April–June 2024: |
18 July 2024 |
| Interim Report July–September 2024: |
23 October 2024 |
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 24 October 2023, at 08:00 CEST.
Auditor´s Review report
Bilia AB (publ) corp. id. 556112-5690
Introduction
We have reviewed the condensed interim financial information (interim report) of Bilia AB as of 30 September 2022 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act. .
Göteborg 24 October 2023 PricewaterhouseCoopers AB
Fredrik Göransson Authorized Public Accountant
This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.
Bilia is one of Europe's largest full-service suppliers for everything related to car ownership, with a leading position in servicing and sales of cars, transport vehicles and trucks. We offer the car owner service, repair, fuel, car wash, rental cars, tyres and wheels, rim repair, car accessories, car care, paint work, windscreen replacements, car dismantling and more. Bilia has about 160 facilities in Sweden, Norway, Luxembourg and Belgium plus one online auction site in Sweden.
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 new and used cars, transport vehicles and trucks, plus supplementary services such as financing and insurance. Bilia sells cars from Volvo, BMW, MINI, Toyota, Lexus, Mercedes-Benz, Porsche, Volkswagen, Audi, Skoda, Seat, Cupra, Nissan, Jaguar, Land Rover, XPENG as well as transport vehicles from Toyota, Mercedes-Benz, Volkswagen, Nissan and trucks from Mercedes-Benz.
Bilia's Fuel Business comprises fuel sales and car washes in Sweden.
Bilia AB (publ) Box 9003, SE-400 91 Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: +46 (0)10 497 70 00 bilia.com Corporate ID No.: 556112-5690