Our 'BBB-' long-term issue and issuer ratings on Møller Mobility Group AS are unchanged following the publication of its results for full-year 2021.
Annual revenues sharply higher on increased sales prices
Møller Mobility reported a 9.4% year-on-year increase in revenues for full-year 2021, significantly above our expectation of 5%. The full-year reported EBITDA margin was 7.1%, up from 5% in full-year 2020. Revenues for the final four months of the year were down 2% year on year, following a strong performance in the corresponding period of the previous year. The orderbook remains healthy due to delayed deliveries because of the continuing global semiconductor shortage, coupled with strong sales and higher prices for new cars. However, the company's market share in Norway fell to 21.1% in the course of 2021 from 26.7% previously, even though the domestic market was strong with record registrations of 176,276 new cars.
Cash position and liquidity strong
Relatively low numbers of deliveries and increased sales continued to strengthen Møller Mobility's holdings of cash and equivalents, which stood at NOK 2.7bn as of end-2021, with a corresponding positive effect our credit metrics. The company aims to pay about NOK 700m in dividends for the final four months of 2021, resulting in a total of NOK 1.4bn in dividends for the full year. Liquidity remains strong after the refinancing of an undrawn credit facility which increased the amount available to NOK 2bn from NOK 1bn previously.
Figure 1. Møller Mobility key credit metrics, 2017–2021
| NOKm | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Total revenue | 28,273 | 26,173 | 30,561 | 33,017 | 36,137 |
| NCR-adj. EBITDA | 1,687 | 1,632 | 2,126 | 2,246 | 3,195 |
| NCR-adj. EBITDA margin (%) | 5.97 | 6.24 | 6.96 | 6.80 | 8.84 |
| NCR-adj. net debt | 3,335 | 4,454 | 6,030 | 3,064 | 2,630 |
| Total assets | 8,050 | 8,173 | 9,785 | 10,025 | 11,209 |
| NCR-adj. net debt/EBITDA (x) | 2.0 | 2.7 | 2.8 | 1.4 | 0.8 |
| NCR-adj. EBITDA/net interest (x) | 9.3 | 7.7 | 8.2 | 9.7 | 16.1 |
| NCR-adjusted FFO/net debt (%) | 37.2 | 27.6 | 26.2 | 53.4 | 93.0 |
| NCR-adjusted FOCF/net debt (%) | 49.1 | 13.7 | -4.3 | 89.5 | 133.7 |
This commentary does not constitute a rating action.
Contacts:
Mille Fjeldstad, analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com