Arval’s strong performance in used car market drives profits
Arval has released its annual financial results for 2022, which showed what it describes as “very good performance” and this was largely attributed to the company doing well in the used car market in which residual values stayed high throughout 2022.
Arval outperformed the market in terms of the leased fleet with 1,592,024 vehicles leased worldwide at the end of December 2022, resulting in an 8.3% growth. It achieved this despite longer new-vehicle delivery times due to the semi-conductors shortage and logistics issues affecting the auto sector. The Corporate leased fleet reached 1,082,503 vehicles at the end of December 2022 (+4.9% compared to end-December 2021). The Retail segment came to 454,186 vehicles, a 13.5% increase compared to end-December 2021, showing growing interest of SMEs and retail customers for full-service leasing, even in a disturbed market. The Mid-term Rental segment expanded by 48% compared to 2021.
Continued business expansion
Expansion in activity, including the acquisition of Terberg Business Lease Group in November 2022, and sales of used cars with strong RVs, resulted in a gross operating income of just under €2.5mn (€2,495.50), which was up 43.7% on 2021.
In a press release, Alain van Groenendael, Arval Chairman and CEO, said: “Our gross operating income rose significantly, driven by high used-vehicle prices. We kept operating expenses under control, and our cost of risk is still low. Arval thus achieved a net income of 1,249 million euros, a steep increase from the previous year.