The Managing Director’s comments

Stronger results and growth in our Service Business 

In the fourth quarter, the Service Business represented 25 per cent of our turnover and 81 per cent of our operational earnings. Growth in our Service Business is therefore a key objective. Demand in our Service Business was stable in the year’s final quarter, with booking times at good levels at our service and repair centres. In the fourth quarter, as for the full year, organic growth in our Service Business was 7 per cent. As technology in cars advances, we are seeing increased demand for servicing and advice from our customers. This requires that we constantly develop our business and boost our knowledge so that we can exceed customers’ needs and expectations. 

 

 

New additions and changes in the Bilia family

 We are also growing through acquisitions. During the quarter, we have completed the acquisition of Carlo Schmitz S.à r.l. in Luxembourg, a full-service business for BMW. This means we now have two facilities in Luxembourg, and we can see good opportunities for their development. Also during the quarter, we entered into a partnership agreement with Polestar Sweden, and will become a full partner to Polestar in 2025. We already work with Polestar in the Service Business, and look forward to welcoming Polestar as a new brand in our Car Business. As part of our ongoing operational review, during the quarter we reached an agreement to divest the Mercedes-Benz truck business we acquired in 2021. Bilia will continue as a full-service supplier for Mercedes-Benz cars and transport vehicles.

Bilia’s financial and sustainability targets

Our Capital Markets Day in November included an update on strategies, focusing on the Service Business and our circular business model, and how they jointly contribute to Bilia’s future. Our aim is to continuously optimise our processes to ensure higher customer satisfaction and profitability and thereby increase shareholder value. We believe that our financial and sustainability targets remain relevant, based on activities within the Group and current expectations of market development for our Service Business and Car Business. Hoping for better times for our customers The Service Business is deemed stable in the upcoming quarter as, booking times in our service workshops are at strong levels. We are seeing an improvement in new car orders, albeit from historically low levels. The tough economic situation in the automotive industry is driving competition between car brands and leading to continued discount campaigns. This, combined with lower interest rates in Sweden, gives us reason to hope for improved new car sales in 2025.

 

Hoping for better times for our customers

The Service Business is deemed stable in the upcoming quarter as, booking times in our service workshops are at strong levels. We are seeing an improvement in new car orders, albeit from historically low levels. The tough economic situation in the automotive industry is driving competition between car brands and leading to continued discount campaigns. This, combined with lower interest rates in Sweden, gives us reason to hope for improved new car sales in 2025.