Strong development in a challenging 2022
The Nic. Christiansen Group, one of Denmark’s largest car companies, delivered the second best result in the group’s 56-year history in 2022.
The positive results were achieved despite a year that dominated by a number of extraordinary challenges with both the macroeconomic and geopolitical uncertainty caused by Russia’s invasion of Ukraine. The entire automotive industry has been impacted by rising energy prices, high inflation, rising interest rates, lower purchasing power, and supply chain bottlenecks. Consequently, the Nic. Christiansen Group received fewer vehicles than the market demanded. That’s why the hefty order book has been brought over to 2023 across all brands.
"Even though 2022 was dominated by a number of challenges that impacted the entire automotive industry, we are once again delivering good results. Of course, we have also been affected by market conditions. If the global supply problems had not resulted in long delivery times for cars, we would once again beat the sales record this year. We are delighted with our financial results for 2022, which demonstrate that we are good at seizing opportunities – even when facing multiple challenges. The accounts show that we have a healthy business and a solid base for further developing the Nic. Christiansen Group," says Niels Vrist Bertelsen, CEO of the Nic. Christiansen Group.
Hyundai Bil Import A/S has once again excelled in the results, just as BMW dealer Bayern AutoGroup A/S also delivered a good result in 2022. The used vehicle market, which is part of the Nic. Christiansen Group’s strategic focus, developed positively throughout the year.
The excellent results are due in particular to a high demand for electric cars. In 2022, electric and plug-in hybrid vehicles accounted for 37 per cent of total sales in the Nic. Christiansen Group. More than one in three vehicles sold were therefore chargeable.
"There is no doubt that the Danes have made a decision: The future car market for passenger cars is electric. We see a very high appetite for electric cars, which is why as part of our strategy we have also introduced a new electric car brand to our portfolio, which is already attracting a lot of interest. We will continue to look at the opportunities to expand the business. The ongoing consolidation in the industry opens up new opportunities that will not only support, but also expand our strong market position," says Bertelsen.
The Group’s solidity and strong operations cement the Nic. Christiansen Group’s particularly robust financial position. Equity has once again increased and reached DKK 1.2 billion at the end of the year.
Hyundai Bil Import A/S, a subsidiary of the Nic. Christiansen Group still disagrees with the Danish Motor Authority’s assessment of the tax calculation for a large number of cars in the 2016–2021 period. The Danish Motor Authority’s decision has therefore been brought before the Danish Tax Appeals Agency for a decision, and will potentially later be brought before the judicial system. Hyundai Bil Import A/S ultimately expects to win the case, but has chosen to pay the discussed amount to the Danish Motor Authority without charging it as an expense. After tax, the claim amounts to DKK 235 million net. The case does not affect customers or business partners.
The solid financial results and the large order backlog brought into 2023 mean that the Nic. Christiansen Group is in a strong position for the future. The macroeconomic trends are expected to dampen activity in the global car market, and the Group is therefore also anticipating to be affected by the market changes, with an expected result in the range of DKK 100– 150 million. The Nic. Christiansen Group maintains its focus on running a healthy and profitable business with a continued central and strong position in the market.
Niels Vrist Bertelsen CEO of Nic. Christiansen Gruppen A/S, is available for questions.
Enquiries from the press are coordinated by Morten Crone, senior adviser at Ulveman & Børsting, who can be reached on +45 24 64 20 47.