Worldwide news

06May

Trading update on Q1 2020 results

Trading update on Q1 2020 results
  • ORGANIC TOTAL FLEET GROWTH + 4.9%1 VS. END MARCH 2019
  • RESILIENT NET INCOME (GROUP SHARE) AT EUR 128.9 MILLION
  • SOLID AND ADAPTABLE FUNDING STRUCTURE
  • ROBUST BUSINESS MODEL WITH MULTI-YEAR CONTRACTS
  • 2019 EUR 0.63 DIVIDEND PER SHARE PROPOSAL MAINTAINED


First quarter 2020 results highlights

  • ✓ Total Fleet 1.78 million vehicles managed worldwide at end March 2020, +5.6% vs. March 2019
  • ✓ Leasing Contract and Services Margins at EUR 326.3 million, up 3.1% vs. Q1 2019
  • ✓ Used Car Sales result at EUR 3.2 million, including EUR 9 million impairment of used car stock, reflecting COVID-19 risks, implying a Used Car Sales result2 per unit at EUR 43
  • ✓ Operating Expenses at EUR 4.6 million, up 2.9% vs. Q1 2019
  • ✓ Cost of risk up EUR 7.4 million vs Q1 2019, including a EUR 4.4 million IFRS9 provision for COVID-19 crisis related credit risk
  • ✓ EUR 10 million after tax profit on disposal of stake in ALD Fortune (China)
  • ✓ Net Income (Group share) at EUR 128.9 million in Q1 2020, down 3.7% vs. Q1 2019

On 6 May 2020, Tim Albertsen, ALD CEO, commenting on the Q1 2020 Group Results, stated:

“ALD started the year with a good commercial performance reflecting the strength of our business model and franchise. When from mid-March onwards the COVID-19 lockdowns gradually caused economic activity to slow down in many European countries, our efficient remote working arrangements and state-of-the-art digital tools allowed our staff to continue to engage with our clients and help address their immediate needs. Despite the challenges, our operating and financial performance in Q1 was reassuring and reflects the robustness and geographical diversification of our business model. At the same time ALD has taken an active role in supporting those on the frontline of the crisis by lending our assets and making donations, in a great number of countries. As our main markets progressively emerge from confinement we are positioning ourselves to seize new opportunities, for instance by responding to the demand for flexible products and promoting our used car lease offer, while paying careful attention to our costs. ALD remains committed to a partnership driven strategy of delivering sustainable growth backed by service excellence and I am convinced that we will come out of this crisis even stronger and continue to lead the market.”


1 Excluding the acquired Stern Lease fleet from Q3 2019 (14K vehicles) and including the ALD Fortune divested from Q1 2020 (2K vehicles)
2 Management information

 

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