10 Sep 21

Arval shows strong growth in H1 2021

Strong growth in all metrics: Arval’s half-year report showed a company exhibiting robust expansion on all fronts, in the face of adverse market conditions. Fleet size increased by 6.4%, net income was up 59.3%. The used-car market was an important driver of the excellent results. 

“Arval’s activity continued to develop well in the first half of 2021 (…) confirming our position as European leader of the multibrand full-service leasing industry,” said Arval CEO Alain Van Groenendael (pictured). Some salient figures from the report:

  • The total leased fleet grew by 6.4% (compared to June 2020) to 1,416,777 vehicles. 
    • The corporate leased fleet grew by 3.3% to 1,012,995 vehicles. 
    • The retail segment grew by 16.2% to 372,007 vehicles (of which 31% in private lease). 
    • The mid-term rental segment grew by 3.6% to reach 31,105 vehicles.  
  • Electrified vehicles represented 26% of Arval’s worldwide deliveries in H1 2021, bringing the total to 154,402 electrified vehicles, up by 83%.
  • Gross operating income totalled €845.7 million, up by 29.3%. 
    • Excluding car sales, the result was €358.8, up 9.2%.
    • Lease contract margin rose by 17.1%
    • Lease service margin was €320.9 million, up by 1.5%.
  • Car sales reached €166 million, compared to €31.5 million in H1 2020 (a low figure due to lockdowns). 
    • The number of disposals reached 171,102, up 52.3%.
  • The operating result stood at €435.1 million, up 64%. Profit before tax came to €441.7 million, up 66.7%. Net income was €334.6 million, up 59.3%.

Arval managed to grow its fleet despite the longer delivery times for new cars (due to the semiconductor shortage). Arval’s car sales result benefited from the positive evolution of the used car market in terms of demand and prices. 

As part of its strategic plan Arval Beyond, Arval launched a range of new mobility services, including Arval Mobility Hub, the Arval Mobility app, and Arval Mobility Consulting. 

Arval also implemented a number of partnerships, including with Sixt in various countries, and with UniCredit Bank in Austria. In June, Arval also acquired Athlon’s full-service leasing fleet in Switzerland. 

“Supported by the high level of used car prices, we’ve seen in a strong increase in our gross operating income,” said Mr. Van Groenendael. “Operating expenses were well controlled and the cost of risk was down compared to last year when it was impacted by the Covid crisis.”

Image: Fleet Europe

Authored by: Frank Jacobs