Hedin Mobility Group has reported a loss of Skr231m ($21.74m) for the first quarter of 2024 versus a profit of Skr392m in the year ago period.  

The first quarter saw the net sales rise by 32% to Skr23.58bn from Skr17.83bn in the first quarter of 2023. 

In the retail sector, net sales soared 37% to Skr21.68bn, while the distribution segment registered a 22% slump in net sales to Skr2.99bn.  

Despite the rise in sales, operational earnings fell to Skr95m while operating margin dropped from 2.1% to 0.4%. 

Hedin Mobility CEO Anders Hedin stated that the automotive market has been marked by caution.  

The swift rise in interest rates has led to a downturn in order intake over the previous year.  

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Furthermore, the demand for electric vehicles (EVs) has decreased because of the elimination or reduction of subsidies in numerous European nations, which has forced manufacturers to lower costs in an effort to increase sales.  

These factors have affected the market value of used EVs and vehicles sold with repurchase commitments, such as private leasing, consequently affecting margins in the used vehicle market. 

Hedin Mobility’s cash flow from operating activities stood at Skr764m.  

Investments in fixed assets, excluding leasing vehicles and right-of-use assets, amounted to Skr476m.  

The company’s available funds including unused overdraft facilities and revolving credit facilities stood at Skr3.44bn. 

With a network spanning 12 countries, Hedin Mobility operates over 330 facilities and represents more than 40 vehicle brands, employing a workforce of 11,212 individuals. 

Hedin added: “For several years, we have worked to diversify our business, geographically and with new business areas. As we continue to grow, we want to do it together, unified under a common brand, with shared values, a common vision, and a strong focus on what matters most – our customers. Therefore, In 2024, all operations will be unified under the common brand name Hedin Automotive. 

“There are clear signals that the interest rates will be decreased during the year and we see positive development in sales compared to previous year for comparable units. With expectations of decreased interest rate combined with lower inflation forecasts, we are optimistic about a gradual improvement in economic activity and demand during the second half of the year.”