Worldwide news

08Feb

ALD REPORTS FULL YEAR 2017 RESULTS

ALD REPORTS FULL YEAR 2017 RESULTS

 

 

  • EXCEPTIONALLY STRONG FLEET GROWTH, WELL ABOVE GUIDANCE: TOTAL FLEET UP 9.8% VS. 2016, CONFIRMING ALD’S LEADING POSITION IN EUROPE
  • OPERATING AND FINANCIAL PERFORMANCE IN LINE WITH GUIDANCE 
  • GROSS OPERATING INCOME UP 7.1% VS. 2016 AT EUR 1332.8M
  • LEASING CONTRACT AND SERVICES MARGINS UP STRONGLY VS. 2016, COMPENSATING FOR LOWER CAR SALES RESULT
  • NET INCOME (GROUP SHARE) UP 10.9% VS. 2016 AT EUR 567.6M
  • EPS AT EUR 1.40, PROPOSED 2017 DIVIDEND: EUR 0.55 PER SHARE        

2017 RESULTS HIGHLIGHTS

  • Total Fleet: 1.51 million vehicles managed worldwide at end Dec 17, up 9.8% vs. end Dec 16
  • Gross Operating Income at EUR 1332.8 million, up 7.1% vs. 2016, driven by strong growth in Leasing Contract and Services Margins (+12%) and lower Car Sales Result (-18%)
  • Net Income (Group share) at EUR 567.6 million in 2017, up 10.9% vs. 2016
  • Earnings per share at EUR 1.40
  • Proposed dividend of EUR 0.55 per share, corresponding to a pay-out ratio of 39.2%
  • ROE [1] at 17.9%
  • Equity/Asset ratio at 16.0%

 KEY 2017 STRATEGIC INITIATIVES & OPERATIONAL DEVELOPMENTS

  • Successful listing of 20.18% of ALD’s shares on Euronext
  • Acquisition of Merrion Fleet (Ireland)
  • Acquisition of BBVA Autorenting (Spain) and signing of new distribution partnership
  • Launch of greenfield operations in Colombia
  • Best Customer Service Awards for ALD France (10th year in a row)
  • Successful bond market issuance: EUR 800m EMTN in July, EMTN 600m in November

 GUIDANCE FOR 2018

  • Total Fleet to grow at 8-10% vs. 2017
  • Leasing Contract & Services Margins to grow in line with Total Fleet 
  • Car Sales Result between EUR 200 and 400 per vehicle, on average
  • Cost/Income (excluding Car Sales Result) to improve to 50%
  • Total Equity / Total Assets ratio between 15% and 17%
  • Target dividend pay-out ratio between 40% and 50%

 On 8 February, Mike Masterson, ALD CEO, commenting on the FY 2017 Group Results, stated:

“The exceptional rate of fleet growth achieved by ALD in 2017 demonstrates the strength of our commercial franchises and the quality of our services. This performance has yielded solid operating and financial results in 2017 in line with the guidance we had provided to the market. This is despite a challenging used car market, affected by the continuing debate about diesel engines. A key focus of the business in 2017 has been managing our residual values and in particular the diesel product offering. The Group is moving towards a more balanced fleet mix and we are continually developing our used car resale capabilities and the channels required to promote used car leasing. I am confident that 2018 will see continued strong fleet growth for ALD, which will help in further improving operating leverage and compensate for a lower contribution to our results from car sales. The growth that we are currently registering, built on new partnerships and great technology, leaves the business well positioned to be a leader in the mobility sector in the years ahead.”

Click to read the PR 

*The Group’s unaudited consolidated results as at 31 December 2017 were examined by the Board of Directors, chaired by Didier Hauguel, on 7 February 2018. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress. 

[1] ROE: Return on Equity | Annualized ratio: in the numerator quarterly figure multiplied by 4 or half-year figure multiplied by 2 or annual figure. In the denominator the arithmetic average of Earning Assets or Equity attributable to owners of the parent at the beginning and end of the period.