LeasePlan Q2: net result up 101%
Driven by high residual values, a full order book and funds raised from CarNext’s going independent, LeasePlan posted a net result of €174 million for Q2 2021.
In the second quarter of corona year 2020, LeasePlan reported a net result of €86.7 million. This year’s Q2 result is up 101% and the serviced fleet has grown 1.6% to reach 1.9 million vehicles and an order book that reached a record high, partially driven by the semiconductor shortage which has delayed new car deliveries.
Continued demand for e-commerce related delivery vehicles also drove strong growth in new LCV registrations, significantly outperforming the market.
On the sustainability front, LeasePlan continued to make progress towards its 2030 net zero ambition, with new orders for electric vehicles and plug-in hybrids increasing to a record 17.4%. Going forward, LeasePlan’s zero emission offering will be strengthened by its partnership with EV manufacturer Arrival, enabling delivery of an entire new range of innovative and fully customisable eLCVs to customers across Europe.
LeasePlan also continued efforts in the field of digitisation. Tex Gunning, CEO, said: “LeasePlan’s ambition is to unlock this growth through the implementation of NextGen LeasePlan – a fully digital global business model delivering digital services at digital cost levels through a modular Next Generation Digital Architecture. An excellent proofpoint of NextGen LeasePlan is our new omnichannel customer service module, which allows us to deliver a harmonised customer experience across all touchpoints. In the coming quarters, we will continue to execute our digital roadmap with more countries being rapidly folded into our NextGen modules.”
Vehicle sales and end of contract fees were up by 40.2% to €853 million, driven by continued beneficial used-car pricing and a higher amount of vehicles sold (+30%) due to the disruption of the used-car market in Q2 2020.
Underlying operating expenses were up 12.5% to €222 million, in large part attributable to continued investments in digital platforms but also relatively low expenses in Q2 2020 due to cost measures related to COVID-19.
The underlying net result from discontinued operations amounts to €-23 million (-6.6%), due to the sale of LeasePlan Australia and New Zealand to SG Fleet. Once approved, LeasePlan is expected to close the transaction in Q3 and it will receive a 13% minority stake in SG Fleet.
LeasePlan also carved out its used-car business CarNext into a fully independent business and raised €400 million to supercharge the next phase of its growth. Mr Gunning commented: "Going forward, our long-term service agreement with CarNext ensures LeasePlan will continue to be supported by an industry leading remarketing partner that delivers the best prices for our high-quality used cars."
Photo: Tex Gunning, CEO, LeasePlan (copyright: LeasePlan)
