Features
11 May 22

LeasePlan Q1 net result up 99%

LeasePlan
ALD

LeasePlan’s net result for the first quarter of 2022 is €360 million. That is up 99.4% compared to Q1 2021. The leasing company’s serviced fleet grew 6.3% year on year, almost reaching 1.9 million vehicles, while its Q1 2022 order book reached historic highs, LeasePlan stated in its first quarterly report of the year. 

“In the first quarter of 2022? LeasePlan continued to deliver outstanding results, as it operates in one of the most attractive industries”, said Tex Gunning, CEO of the LeasePlan, which is in the process of being acquired by ALD. 

Some highlights from the quarterly report:

  • The net result of €360 million (+99.4%) includes a net €85 million positive mark-to-market impact, arising from derivatives used for hedging. 
  • The underlying net result of €281 million is up 69.1% year-on-year. 
  • Gross profit from leasing and additional services was €398 million (+8.7%), with all services showing a strong performance.
  • Gross profit from used-car sales and end-of-contract fees was €199 million (+209.7%), driven by strong demand for used cars. 
  • On 22 April, LeasePlan, ALD and Société Générale (ALD’s main shareholder) signed a binding agreement confirming the terms of the acquisition disclosed earlier this year. 

Separate entities

For now, both companies continue to operate as separate entities. LeasePlan, for its part, expects strong growth, as evidenced by its strong fleet growth and record orders. 

Additionally, “our used car proposition has never been so popular, driven by continued demand for second-hand cars and the increasing uptake of used-car leasing services,” Mr Gunning went on. “The transition to zero-emission mobility is also driving growth, with 1 in 4 of our new deliveries now being an EV.”

For example, in February, LeasePlan signed a new partnership with global facility managing services provider ISS to electrify its entire fleet of 20,000 vehicles worldwide.  

Looking ahead to LeasePlan’s integration with ALD, Mr Gunning said the combined company “will be well-positioned to ride the subscription megatrend, lead the shift to electric mobility and be at the forefront of the digital revolution. The combined company will also bring together the best talents in the industry to capture the
opportunities of the fast-growing mobility market.”

Image: Shutterstock

Authored by: Frank Jacobs
Financial Models
Europe