ALD makes its leap in the first half – 08/03/2022 at 09:51

(AOF) – Ald, the heavyweight in car rental, unveiled a net profit up 72.2% to 606.1 million euros for the first half of 2022. The group achieved solid commercial performance in a disturbed environment with a fleet financed at € 1.45 million, an increase of 5.4%. Its results on the sale of used vehicles amounted to € 432.7 million against € 125.3 million the previous year.

ALD’s gross operating margin reached € 1.2372 billion, up 55.3%.

Operating costs amounted to € 404.3 million, including preparation costs for the acquisition of LeasePlan (for € 41.3 million), the entry into the consolidation area of ​​Sabadell Renting and FFM UK for € 7.9 million euros and the increase in variable remuneration for record sales of used cars.

“In a more difficult geopolitical and macroeconomic context, characterized by continuous interruptions of supply chains, ALD performed well, thanks to the solidity of its business model and the ability to adapt to unprecedented situations. The priority given to service to the customer and our efforts to transform the world of mobility have paid off, ”commented Group CEO Tim Albertsen.

ALD predicts that the shortage of new vehicles and the very favorable relationship between supply and demand of used vehicles will continue in the second half of 2022, the group expects a growth of the financed fleet between 2 and 4% compared to 2021.

Ald will publish the results for the third quarter of 2022 on November 4.

AOF – FIND OUT MORE

Key points

– Number 1 in Europe and number 2 in the world in car rental, with a fleet of 1.78 million vehicles;

– 1.3 billion euros in revenues generated from lease payments (48%), from rental services (46%) and from the resale of vehicles at the end of the contract;

– European presence (80.3% of the fleet in Western Europe, 8.8% in Central Europe and 5.3% in Northern Europe) with diversification in South America, Asia and Africa for 5.6%;

– Business model: contracts lasting more than 3 years for the offer to large companies, partnerships with car manufacturers and banks (34% of the revenues from the offer to companies and 66% to individuals) and diversification of the offer to individuals;

– Capital controlled at 79.82% by Société Générale, Tim Albertsen as chief executive officer and Diany Lebot as chairman of the 10-member Board of Directors;

– Sound financial position with a debt ratio of 16.7%.

Challenges

– “World 2025” strategy to acquire the position of world leader in long-term rental based on 4 levers: innovative customer service under a single brand, growth through the expansion of offices and new mobility solutions, social responsibility and value creation over the entire economic cycle: 2.3 million contracts of which almost 85% of the financed fleet / cost / income ratio between 46 and 48% / 68 million euros of additional digital investments;

– Innovation strategy: anticipation of the use of connected and intelligent vehicles, already implemented through the partnership with Vinli for telematics / global service from a single MyAld platform, accompanied by 2 other sales platforms / expansion of digital solutions offerings – Pop Go, ALD Share, ALD Move, etc. / security of information systems, developed internally;

– Environmental strategy aimed at reducing carbon emissions by 30% in 2025 vs 2019 – towards customers: from a single label: ALD bluefleet, which indicates more responsible services, ALD switch (electric or thermal / hybrid vehicles), ALD electric (integration of vehicles into fleets), upgrading of non-diesel vehicles and shared use (partnership with Blablacar, Klaxit, Drivy, etc.) / “green” loans for the acquisition of low-carbon vehicles;

– Partnership spin-off (Amazon in Spain, Tesla in 14 countries, Polestar in 3 and Mitsubishi in Malaysia) and diversification into flexible short-term rental and car sharing;

– Activity protected by the multi-year duration of lease contracts.

Challenges

– Towards the acquisition, effective in December 2022, of Lease Plan, for an amount of 4.9 billion euros paid in shares and cash: which would make the group, baptized NewALD, the world leader in mobility with a fleet of 4.5 million vehicles / which would reduce the stake held by Société Générale to 53%;

– Objective for 2022 of an increase in the financed fleet of about 3%, a unit resale margin of + € 1,000 and a distribution rate of 50 to 60%.

The negative effects of rising interest rates

Rising interest rates usually cause bank income to increase through loans. In Europe, according to a survey conducted by S&P of 85 banking institutions, the sector expects on average an 18% increase in its interest margin. However, this new inflationary environment also has undesirable effects, notably an increase in refinancing costs. It is also accompanied by the fear of a new recession, which would then affect all the bank’s activities, from loans to asset management, whose income is correlated to market valuations. Reassuring element: euro area banks are strong enough to cope with a deteriorating environment.

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