Worldwide news

05May

Trading update on Q1 2022 results

Trading update on Q1 2022 results
  • NET INCOME (GROUP SHARE): EUR 255.3 MILLION, UP 64.2% VS Q1 2021
  • STRONG OPERATING PERFORMANCE IN A DISRUPTED ENVIRONMENT: FUNDED FLEET AT 1.44 MILLION, UP 4.8% VS END MARCH 2021
  • RECORD USED CAR SALES RESULT PER UNIT[1]: EUR 3,101 VS EUR 439 IN Q1 2021
  • GUIDANCE ON 2022 AVERAGE USED CAR SALES RESULT PER UNIT REVISED UPWARDS TO ABOVE EUR 2,000 
  • FRAMEWORK AGREEMENT FOR THE ACQUISITION OF LEASEPLAN SIGNED ON 22 APRIL 


First quarter 2022 results highlights

  • Total Contracts 1.737 million contracts managed worldwide at end March 2022
  • Funded fleet 1.436 million vehicles, up 4.8% vs end March 2021
  • Leasing Contract and Services Margins at EUR 329.0 million, up 4.5% vs Q1 2021 when adjusted for a provision in Ukraine (EUR -27.3 million) and the impact of fleet revaluation (EUR +12.5 million)
  • Used Car Sales result at EUR 215.2 million, vs EUR 38.2 million in Q1 2021
  • Cost/Income Ratio (excl. Used Car Sales Result) at 52.7% when adjusted for the provision in Ukraine vs. 49.9% in Q1 2021, reflecting preparation costs for the integration of LeasePlan
  • Cost of Risk at EUR 7.9 million, vs EUR 8.7 million in Q1 2021
  • Net income (Group share) at EUR 255.3 million vs EUR 155.5 million in Q1 2021

Outlook for 2022

While the global economy pursued in Q1 2022 its recovery from the pandemic, the macroeconomic environment became more uncertain during the quarter, with continued disruptions in supply chains, rising inflation, increasing fuel prices and interest rates, geopolitical tensions and new lockdowns in China. The shortage of new cars intensified in Europe, propelling used car prices to new highs. 
Against this backdrop, ALD saw strong commercial dynamics in Q1 2022, and an exceptionally favourable supply / demand situation in used car markets that is expected to persist in the near term. As a consequence, ALD is adjusting its guidance for 2022 as follows: 

  • Funded fleet growth between 2% and 4% (unchanged); 
  • Used Car Sales result per vehicle above EUR 2,000 (from above EUR 1,000) on average in 2022; 
  • Dividend payout ratio between 50% and 60% (unchanged). 

ALD is continuing to prepare for the acquisition of LeasePlan, with a closing planned for end 2022 [2]. As a consequence, the company has started incurring related costs in Q1 2022 and will share an estimate of the full year impact for 2022 at the time of the half year results publication. 

On 5 May 2022, Tim Albertsen, ALD CEO, commenting on the Q1 2022 Group results, stated: “ALD recorded an excellent start to the year, with very strong commercial dynamics despite continuing supply constraints. In a more complex environment, once again, ALD demonstrated the relevance of its business model through consistent delivery of high-quality results. 

Over the past months, the economic, geopolitical and health environments have changed dramatically, posing unprecedented challenges to the car leasing industry. Nevertheless, ALD was prompt in adjusting and taking necessary measures and I am confident that ALD, thanks to its competitive business edge and the strength of its teams, can successfully navigate through this new environment. 

In this regard, the acquisition of LeasePlan will further reinforce ALD’s positioning and its resilience through the cycle. I am delighted that on 22 April 2022, ALD reached another major milestone towards creating a leading global player in mobility, with the signing of the framework agreement for the acquisition. The transaction is expected to close by end 2022, subject to customary closing conditions.

Read the PR 

 

[1] Management information
[2] Cf ALD press release dated 6 January 2022