Our 'BBB-' long-term issue and issuer ratings on Møller Mobility Group AS are unchanged following the publication of its results for the first eight months of 2021.
Strong revenues driven by both new and used car sales
Møller Mobility reported an increase in revenues of 16.2% year on year for the first eight months, and an EBITDA margin of 7.2%, up from 5.2% for the corresponding period of 2020. The global semiconductor shortage continued to delay car deliveries, resulting in a significant increase in average delivery time for new cars. The shortage has had a similar impact on most of the company's peers, but Møller Mobility's market position was reduced to 21.1% in the four months to August.
The reduced deliveries and increased sales have led to a significant increase in the company's holdings of cash and equivalents, which stood at NOK 2.2bn as of end-August. This in turn had a positive impact on our net debt calculations, resulting in a significant improvement in NCR-adjusted net debt/EBITDA. However, we expect this to prove only temporary and do not adjust our estimates at this point.
Figure 1. Møller Mobility key credit metrics, 2018-August 2021
| NOKm | 2018 | 2019 | 2020 | LTM to Aug. 2021 |
|
Total revenue |
26,173 | 30,561 | 33,017 | 36,409 |
|
NCR-adj. EBITDA |
1,632 | 2,126 | 2,246 | 2,908 |
|
NCR-adj.net debt |
4,454 | 6,030 | 3,064 | 2,474 |
|
Total assets |
8,173 | 9,785 | 10,025 | 11,089 |
|
NCR-adj. net debt/EBITDA (x) |
2.7 | 2.8 | 1.4 | 0.9 |
|
NCR-adj. EBITDA/net interest (x) |
7.7 | 8.2 | 9.7 | 13.5 |
|
NCR-adj. FFO/net debt (%) |
27.6 | 26.2 | 53.4 | 88.4 |
|
NCR-adj. FOCF/net debt (%) |
13.7 | -4.3 | 89.5 | 60.8 |
Based on company data. All metrics adjusted in line with NCR methodology. LTM–last 12 months.
This commentary does not constitute a rating action.
Contacts:
Mille O. Fjeldstad, credit rating analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com
Geir Kristiansen, credit rating analyst, +4790784593, geir.kristiansen@nordiccreditrating.com