Features
5 Aug 22

ALD reports record €1.2-billion half-yearly income

ALD

ALD has achieved a record gross operating income of more than €1.2 billion in the first half year of 2022, up more than 55% over the same period last year. This despite severe market disruptions, notably due to supply chain issues and inflation. 

If it’s not one thing, then it’s another. While the effects of the pandemic softened in H1 2022, the auto industry faced other disruptions, caused mainly by the semiconductor crisis and the war in Ukraine, both of which were instrumental in pushing up inflation and interest rates. 

Used-car windfall

Despite these challenges, ALD achieved an excellent financial result, thanks in no small part to a windfall in the used-car segment. ALD also continues to expand in the run-up to the end of the year, when the acquisition of LeasePlan will be finalised. 

Some highlights from the half-yearly report:

  • Leasing contracts and services margins increased by 4.6% compared to the same period last year, reaching €805.2 million.
  • Used-car sales increased from €125.3 million in H1 2021 to €432.7 million in the first half of this year.
  • Operating expenses amounted to €404.3 million, including a €41.3 million preparation cost for the acquisition of LeasePlan. 

External factors

The big picture: ALD’s gross operating income for the first half of this year reached a total of €1,237.9 million. That’s an increase of 55.3% over the same period last year. Deducting expenses, including from such external factors as the end of benefits from Italy’s Stability Law and hyperinflation in Turkey, ALD’s net income in the first half of this year reached a record €606.1 million, an increase of 72.2% compared to H1 2021. 

ALD’s excellent performance was fuelled in large part by strong used-car sales results and depreciation adjustments:

  • The average sales margin on used vehicles in H1 2022 was €3,212 per unit, and even reached €3,330 in the second quarter; in H1 2021, it was just €740. 
  • The higher per-unit price was offset by a lower overall sales volume: ALD sold 135,000 units in H1 2022, compared to 169,000 units in the same period last year. This was due in part to extensions of used-car lease contracts.

4% fleet growth

Based on these results, ALD offered some predictions for its whole-year results:

  • Its funded fleet will grow by 2% to 4%.
  • The average used-car sales result will be above €2,000 per vehicle.
  • The dividend payout ratio will be between 50% and 60%. 

These results reflect ALD’s constant focus on client needs and its efforts to reshape the world of mobility, commented Tim Albertsen, the company’s CEO. He was confident ALD would overcome current market disruptions thanks to its solid business model and its adaptability. Additionally, the acquisition of LeasePlan will offer new growth opportunities and add resilience, he said. 

In further preparing for the future, ALD:

  • Continues its electrification efforts, with 27% of its new-car registrations in the last 12 months being EVs. Additionally, the company issued a €500-million green bond to finance BEVs. 
  • Launched ALD Move in France,
  • Acquired a stake in Skipr, a Belgian MaaS provider,
  • Acquired Fleetpool, the #1 vehicle subscription service in Germany,
  • Is preparing to roll out its fleet management consultancy ALD Flex in Sweden and Serbia in the latter half of this year.
     
Authored by: Mufit Yilmaz Gokmen
Financial Models
Europe