12 Nov 20
News

LeasePlan Q3 results: net result is lower but meets expectations

In the third quarter of 2020, LeasePlan posted a net result of €101 million, 21.2% lower than last year but within the expectations set at the start of the coronavirus outbreak. CarNext.com sold 1.9% more used cars and posted an 18 million loss.

Gross profit for Car-as-a-Service, the business segment including lease and additional services, was down by 16% to €325 million, impacted by COVID-19 reduction rebates and bonuses due to lower business activity and the increasing provisions for expected credit losses.

Operating expenses, however, were flat due to continued tight cost control despite continued investments in long-term strategic initiatives.

CarNext.com, the company’s off-lease vehicle platform, reported B2C sales were up by 1.9% to 10,800 vehicles. Nevertheless, the net result was €18 million in the red, particularly after further strategic investments worth €6 million, intended to accelerate future growth.

LeasePlan CEO Tex Gunning commented: “Despite unprecedented circumstances, LeasePlan once again delivered a solid performance across both of our businesses this quarter – a testament to the strength and resilience of our business model, the high-quality nature of our customer base and the stability of our income streams, and the dedication and expertise of LeasePlan employees around the world.”

Image: LeasePlan CEO Tex Gunning

Authored by: Benjamin Uyttebroeck