Record results for Sixt, VWFS and LeasePlan
It’s that time of year again. In the wake of ALD, which announced excellent half-year results a few days ago, enterprise mobility providers Sixt, VWFS and LeasePlan are also publishing their Q2 and H1 2022 figures. The short version? Record the results throughout. For the longer version, see below.
Sixt: “Internationalization pays off”
Sixt posted record revenues and profits in the first half of 2022, with profitable and strong revenue growth in all international markets. Some key figures of the period:
- Consolidated revenue reached a record €1.32 billion, up 59.4% year-on-year and 16.9% above the half-year figure of 2019, the last year before corona.
- Consolidated profit before tax (EBT) reached a record level of €223 million, up 250% year-on-year, thanks to strong revenue growth and strict cost management.
- Despite a global production shortage, Sixt’s rental fleet increased by 24% compared to the first half of 2021, reaching an average of 129,400 vehicles.
- Based on these results, Sixt’s Board of Directors expects EBT for the full year to be in the upper end of the €380 to €480 million range.
Sixt’s “very rewarding first half” – according to the press release – is the result of strong revenue growth, not only in Europe (+82%) but also in the United States (+66%) , with an additional boost in North America thanks to the launch of Sixt Canada (beginning with a station in Vancouver in July).
In fact, the foreign (i.e. non-German) share of consolidated revenue continued to grow, from 64% in the first half of 2021 to over 70% in the first six months of this year. year. To be precise: 29.6% of consolidated turnover was generated in Germany, 40.6% in the rest of Europe and 29.8% in the United States, where Sixt is now present in 36 of the 50 major airports.
Cost control was another factor behind the excellent EBT result, with operating expenses increasing significantly less (+47%) than revenues (+59%).
“Our internationalization strategy continues to pay off, and the business performance is strong evidence of the strength of our business,” said Alexander Sixt, the company’s co-CEO, in an earnings commentary.
VWFS: “Importance of financial services”
Volkswagen Financial Services (VWFS) achieved its best half-year result in its history. “(This) demonstrates the great importance of automotive financial services in the Volkswagen Group,” commented VWFS CEO Dr. Christian Dahlheim. Principle results :
- Operating profit reached a record €2.98 billion, up 27.5% year-on-year from operations.
- The volume of contracts in progress fell slightly by -1.2% to 22 million units.
- Based on the results, VWFS raised its full-year profit forecast to 4 billion euros, higher than the original target, but still lower than last year’s result.
The main factors behind VWFS’ record result were continued strong revenues from used car marketing and low cost of risk for credit and residual value risk. However, Dr. Dahlheim cited “special items” that negatively impacted business.
Such as the limited availability of new vehicles, due to which the number of new contracts worldwide decreased by around 3.8 million (-8.8%). Therefore, the number of open contracts, well, contracted1.2% to 22 million.
The latter figure was particularly pronounced in Germany, the biggest market for VWFS: the company’s German contract portfolio shrank by 2.9% in the first half of 2022, to 6.1 million units.
New service and insurance contracts worldwide increased by 4.4% to 2.2 million, representing a total of 11.5 million service and insurance contracts in progress (+4.3% ). The total assets of VWFS amount to 237.7 billion euros (+2%).
LeasePlan: “Integration planning in progress”
LeasePlan published results for the second quarter rather than the first half, but there too, records were broken. Some key results for Q2:
- LeasePlan achieved a net result of 324 million euros, up 85.7% compared to the same period last year.
- The company’s serviced fleet increased by 7.5% to a total of 1.9 million vehicles. The second quarter backlog reached a record level.
- Gross margin for rentals and additional services amounted to 426 million euros (+25.6%), with a good performance across all services.
- PLDV gross margin and termination benefits amounted to €188 million (+112.9%), driven by continued strong demand for used vehicles.
LeasePlan CEO Tex Gunning stressed that the global drive to reduce emissions continues to support the growth of LeasePlan, which has quickly and strongly converted to the electric cause. Last quarter, 26% of its deliveries were electric vehicles.
The quarter was also marked by the acquisition of LeasePlan USA by the parent company of Wheels Donlen. This decision is part of the complicated realignment of the leasing sector resulting from the acquisition of LeasePlan by ALD, announced earlier this year (for 4.9 billion euros).
By the way: these are some of the company’s latest results as an independent entity. The acquisition is expected to be completed by the end of 2022.
Looking ahead, we are excited about the opportunities the proposed combination with ALD will bring to LeasePlan and the mobility industry. Integration planning is now underway to lead the transition to sustainable, subscription-based mobility services,” concluded Gunning.