Worldwide news

07Feb

ALD REPORTS FULL YEAR 2018 RESULTS*

ALD REPORTS FULL YEAR 2018 RESULTS*
  • 2018 OPERATING AND FINANCIAL PERFORMANCE OVERALL IN LINE WITH GUIDANCE
  • RECORD TOTAL FLEET GROWTH OF 10.1%, CONFIRMING ALD’S LEADING POSITION IN EUROPE
  • LEASING CONTRACT AND SERVICES MARGINS ROSE STRONGLY, UP 6.3%
  • CAR SALES RESULT PER UNIT AT EUR 362
  • IMPROVED COST/INCOME RATIO (EXCL. CAR SALES RESULT) AT 49.8%, DOWN BY 1.4 PERCENTAGE POINTS
  • NET INCOME (GROUP SHARE) DOWN SLIGHTLY AT 555.6 MILLION
  • EPS1 AT EUR 1.37
  • PROPOSED 2018 DIVIDEND OF EUR 0.58 PER SHARE UP FROM EUR 0.55 IN 2017
     

2018 RESULTS HIGHLIGHTS

  • Total Fleet growth above 8-10% guidance at 10.1%; 1.66 million vehicles managed worldwide at end Dec 18, including more than 100K electric and hybrid vehicles
  • Gross Operating Income at EUR 1,343.0 million, up 0.8% vs. 2017
  •  Leasing Contract and Services Margins up 6.3%, below 8-10% guidance, principally due to impact of Italian Stability Law²
  • Car Sales Result per unit in upper part of EUR 200-400 guidance; Car Sales Result at EUR 102.5 million
  • Operating Expenses up 3.3%, Cost/Income Ratio (excl. Car Sales Result) at 49.8%, better than 50% guidance
  • Net Income (Group share) at EUR 555.6 million in 2018, down 2.1% vs. 2017
  • Earnings per share1 at EUR 1.37
  • Proposed dividend of EUR 0.58 per share, corresponding to a payout ratio of 42.0%, in line with 40-50% guidance
  • ROE3 at 15.9%
  • Equity/Asset ratio at 15.8%, in line with 15-17% guidance
     

GUIDANCE FOR 2019

  • 5-7% organic growth in Total Fleet vs. 2018, plus bolt-on acquisitions as opportunities arise
  • Car Sales Result per unit to average between EUR 100 and EUR 300
  • Cost/Income (excluding Car Sales Result) ratio to improve further, to circa 49%
  • The ratio of Total Equity to Total Assets to remain between 15 and 17%.
  • Payout ratio of 40-50% in 2019
     

On 7 February, Mike Masterson, ALD CEO, commenting on the FY 2018 Group Results, stated:

“2018 was yet another year of record fleet growth for ALD, confirming our market leadership and demonstrating the strength of our commercial franchise. This success continues to be driven by the quality of our services, for which we once again received numerous awards, our unique multichannel sales organisation, and our state of the art digital tools. In the face of headwinds from a challenging used car market for diesel vehicles, ALD managed to record financial results close to the record performance in 2017. We aim to lead the market in the transformation of our fleet from diesel engine towards electric and hybrid powertrains. The Group’s focus on this transformation has resulted in a significant rebalancing of our powertrain mix in the deliveries made over the last 12 months. At the same time, we are making good progress in the development of used car leasing. We continued to allocate substantial ressources to our IT investments, which we strongly believe to be key to our future competitiveness. Our overall operating and financial performance in 2018 was substantially in line with the guidance we had provided to the market, and underpinned by a further improvement in our already best-in-class operating efficiency. I am confident that in 2019 we will confirm the robustness of our operating model and our leading competitive position thanks to our unrivalled partnership network and technology.”

1 Diluted Earnings per share, calculated according to IAS33. Basic EPS for 2018 at EUR 1.38
2 Estimated to lower growth in Leasing Contract & Services Margins by up to 1.5% in 2018 vs. 2017 (management information)
3 ROE: Return on Equit

*The Group’s unaudited consolidated results as at 31 December 2018 were examined by the Board of Directors, chaired by Didier Hauguel, on 6 February 2019. The audit procedures carried out
by the Statutory Auditors on the consolidated financial statements are in progress.

 

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