Bilia Q4: Service Strength Offsets Sales Miss

Core Results Overview

Bilia reported mixed fourth-quarter results, with sales figures falling short of analyst expectations while operational earnings showed resilience. The company's sales reached SEK 10,209 million, a 5% decrease from the forecasted SEK 10,747 million.

Despite lower sales, operational earnings were SEK 450 million, slightly surpassing the SEK 442 million forecast. However, net profit of SEK 246 million missed consensus estimates, and earnings per share at SEK 2.46 were below analyst predictions.

Performance by Division

The service division was the key driver of performance, delivering its best quarter to date. The division's EBIT was SEK 395 million, significantly outperforming the estimated SEK 328 million and propping up the overall earnings.

In contrast, the car sales division's EBIT came in at SEK 104 million, which was below the SEK 131 million forecast. Nevertheless, this still represented a 30% year-over-year increase for the segment.

Financial Health and Outlook

The company demonstrated strong financial management, with cash flow improving substantially to SEK 675 million from SEK 289 million in the same quarter last year. This strengthens the company's balance sheet.

A key indicator for future performance is the 30% year-over-year increase in new car orders. This surge, combined with a strong performance in Norway due to tax changes, supports a confident outlook from the company.

Summary

Bilia's fourth quarter highlights the critical role of its service business in maintaining profitability amid challenging car sales. While overall sales and net profit missed targets, strong cash flow and a significant uptick in new car orders provide a positive signal for future growth.

FAQ

Q: What was the standout performer in Bilia's Q4 results?
A: The service division was the strongest performer, reporting a record EBIT of SEK 395 million, well above analyst expectations.

Q: Did Bilia's overall sales meet expectations?
A: No, total sales for the quarter were SEK 10,209 million, which was 5% below the analyst estimate of SEK 10,747 million.

Q: What does the increase in new car orders suggest for Bilia?
A: The 30% year-over-year rise in new car orders indicates potential for future revenue growth in the car sales division and supports the company's confident outlook.

Source: Investing.com