The Managing Director’s comments

Stable Service Business and focus on existing operations 

Operational earnings for the quarter amounted to SEK 281 M, with a margin of 3.1 per cent. Results for the Service Business were stable at SEK 221 M, which was SEK 16 M higher than the previous year. The Car Business reported a result of SEK 73 M, with a profit of SEK 96 M for used cars and a loss of SEK 23 million for new cars. Order intake was at a higher level than the previous year. Operating cash flow remained strong at SEK 480 M for the quarter. 

Recent years have been characterised by change, with digitalisation and electrification driving new business models. Our general agents are now combining classic business models with new ones to meet customer demands for a secure, convenient experience when buying a new car. Regardless of the business model, we feel that the demand for quality service and advice is crucial to achieving good customer satisfaction. Electrification of the car fleet is ongoing. In Norway, the share of registered electric cars remained high, reaching 88 per cent for the first nine months of the year. In Sweden, conversely, the share of registered electric cars decreased on the previous year and was 34 per cent. Instead, demand for hybrid cars and fossil fuel cars has increased. In Western Europe, the share of registered electric cars was 26 per cent. Thanks to our diversified portfolio of car brands, we can offer our customers vehicles based on their wants and needs. 

Our focus is on increasing profitability in our existing business areas. Our goal is to continuously optimise our processes, and ensure high customer satisfaction and increased shareholder value. Our Business Excellence team assists Bilia’s Service Business with improvement measures to work more efficiently and thereby increase profitability. We are continuously expanding our operations, both organically and through acquisitions. With a continued focus on our customers and their needs, we aim to continue growing our Service Business.

Therefore, during the quarter we entered into an agreement to acquire Lunds Bil i Varberg AB, a small full-service business for BMW. We look forward to further developing the company and strengthening our position in this area. Since the end of the quarter, we have also completed the acquisition of Carlo Schmitz S.à r.l in Luxembourg, which is also a full-service business for BMW. Moving forward, we will have two facilities in Luxembourg and we see good opportunities to develop them. 

Results for the Service Business remain stable and represented 74 per cent of Bilia’s operational earnings in the third quarter. Booking times at our service workshops are at strong levels, which means stable demand for servicing. Demand for used cars remained strong. The order intake of new cars was higher than in the previous year. Among private individuals, especially in Norway, we are seeing an improvement in activity. With increasing new car promotional activity among our car brands and lower interest rates, we are cautiously optimistic about new car sales in the fourth quarter of 2024.

During the quarter we also expanded our operations with XPENG in Sweden and Norway, and opened further sales points at our existing facilities in response to customer interest.

Future lower interest rates positive for our customers

The Service Business remained stable and represented a significant share of Bilia’s operational earnings in the second quarter. Demand for used cars stayed stable at a good level. We are actively working to strengthen our
range of cars. The order intake was higher than in the previous year, but as in recent quarters private individuals, foremost in Sweden and Western Europe, have been cautious about ordering a new car, and orders were thus
at a historically relatively low level. Having said that, some improvement in activity among private individuals is evident and, in combination with a belief in a stronger economy and lower interest rates in the future, we are cautiously optimistic about new car sales in the fourth quarter of 2024

Per Avander, Managing Director and CEO