Q4 2024 Bilia AB Earnings Call Transcript
Key Points
- Bilia AB (FRA:BHJC) reported a solid result and satisfactory cash flow despite tough economic conditions.
- The service business showed strong demand and achieved one of the best Q4 results ever, with organic growth of 7% for the full year.
- The company experienced a 20% increase in order intake for new cars compared to the previous year.
- Bilia AB (FRA:BHJC) maintained a stable operational cash flow of SEK290 million for Q4 and SEK1.6 billion for the full year.
- The company's net debt to EBITDA ratio was 1.7 times, well below the target of 2.0, indicating strong financial health.
- Lower profitability was reported for new cars in Sweden and Norway due to lower gross profit margins and fewer deliveries.
- The stock of used cars is slightly high in Sweden and Norway, which may require further inventory management efforts.
- Prices for fully electric vehicles are declining, posing a risk to the used car market.
- Financial costs have increased significantly, although they are expected to decrease gradually with lower interest rates.
- The order backlog for new cars is low, particularly in Sweden and Norway, due to shorter production times.
Thank you for the introduction and welcome to Bilia's fourth-quarter results presentation. With CEO, Per Avander; CFO, Kristina Franzen; Deputy CEO, Stefan Nordstrom; and I, Carl Fredrik Ewetz. Despite the current tough economic situation, especially in the core industry, we're proud to present a solid result and a satisfactory cash flow and moving to the agenda.
Same procedure as last quarter, Per will start by going through the current situation in the car industry followed by Q4 numbers. Then Kristina will go through the financial situation and I will conclude with an outlook. So let's start, I leave the word to Per Avander.
Okay. Thank you, Carl Fredrik. And we go to the slide, current market situation in the car industry. There is a good and strong demand in the service business with good booking times.
Our customers take care of the cars both for service and repairs regardless of the financial
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