Bilia AB
STO:BILI A
Bilia AB
Bilia AB, a stalwart in the automotive retail sector, spins a tale of evolution and adaptation in the dynamic world of car dealership networks. The company, headquartered in Sweden, traces its roots back to 1967, and over the decades, it has carved out a significant presence not only in its home market but also in Norway and Luxembourg. Bilia’s operations are split into two primary segments: the Service Business and the Car Business. In its service-oriented endeavors, Bilia ensures the smooth functioning of automobiles through maintenance, repair, and spare parts services. This ongoing relationship with car owners is pivotal, fostering brand loyalty and guaranteeing a steady stream of recurring revenue.
On the sales front, Bilia’s Car Business is fueled by its well-established partnerships with prestigious car brands like Volvo, BMW, Toyota, and Mercedes-Benz. These alliances empower Bilia to offer a diverse range of new and used vehicles, catering to both the premium and mass-market segments. Through its dealership networks, customers are enticed into the showroom with comprehensive services, where the transaction doesn’t conclude with a purchase. Instead, Bilia crafts a complete lifecycle experience, from vehicle financing and insurance under their roofs to enticing aftersales services. Bilia’s holistic approach to both car sales and ownership services positions it as a mainstay in the automotive retail industry, adeptly weaving together various revenue streams to sustain its growth and market presence.
Bilia AB, a stalwart in the automotive retail sector, spins a tale of evolution and adaptation in the dynamic world of car dealership networks. The company, headquartered in Sweden, traces its roots back to 1967, and over the decades, it has carved out a significant presence not only in its home market but also in Norway and Luxembourg. Bilia’s operations are split into two primary segments: the Service Business and the Car Business. In its service-oriented endeavors, Bilia ensures the smooth functioning of automobiles through maintenance, repair, and spare parts services. This ongoing relationship with car owners is pivotal, fostering brand loyalty and guaranteeing a steady stream of recurring revenue.
On the sales front, Bilia’s Car Business is fueled by its well-established partnerships with prestigious car brands like Volvo, BMW, Toyota, and Mercedes-Benz. These alliances empower Bilia to offer a diverse range of new and used vehicles, catering to both the premium and mass-market segments. Through its dealership networks, customers are enticed into the showroom with comprehensive services, where the transaction doesn’t conclude with a purchase. Instead, Bilia crafts a complete lifecycle experience, from vehicle financing and insurance under their roofs to enticing aftersales services. Bilia’s holistic approach to both car sales and ownership services positions it as a mainstay in the automotive retail industry, adeptly weaving together various revenue streams to sustain its growth and market presence.
Solid Service Growth: Service business drove group earnings, with organic growth of 5% overall and 16% in Norway, now making up 81% of operating profit.
Car Sales Mixed: New car order intake was strong (up 31% YoY), but deliveries and profitability for new cars in Sweden and Norway remained low, mainly due to lower gross margins and fewer bonuses from manufacturers.
Used Car Inventory: Used car inventory was successfully reduced and is now at satisfactory levels across all markets, with stable demand for hybrids and traditional cars but weaker for electric vehicles.
Cash Flow & Balance Sheet: Operating cash flow remained robust at SEK 450 million for the quarter, and net debt ratio in line with target at 1.4x.
Strategic Focus: Management is prioritizing efficiency and profitability, especially in recently acquired businesses and the service segment, while remaining cautious but open to M&A opportunities.
