Features
4 Aug 21

ALD half-year results: net income up 70%

ALD had an excellent first half of the year. Net income was up 70% and the operating result saw a 85.1% increase. The total number of contracts staid stable at 1.76 million but EV deliveries rose by 26%.

In a recent interview with Fleet Europe, ALD CEO Tim Albertsen (pictured above) already indicated the year had started strongly and the published figures confirm this. Commenting on the H1 2021 results, he said: “During the second quarter, optimism has come back at several levels, with many countries starting to see the beginning of the exit of the COVID crisis. Although the level of uncertainty remains high, the hard part seems to be behind us.”

The fleet size remained stable at 1.76 million units which ALD attributes to production issues caused by the global semiconductor shortage. "This shortage makes delivery delays of new cars longer," said Mr Albertsen.

Leasing contract and services margins improved by 9% to 671.6 million. For the entire year, ALD expects the fleet to grow by 1 to 3%, with a marked growth of the share of EVs, PHEVs and hybrids. All electrified drivetrains now account for 26% of all new passenger cars in Europe and 23% globally.

Key facts & figures

  • For the first time ever, average CO2 emissions of passenger cars fell below 100g at 99g (116g in 2019), a 15% decrease.
  • Income from used-car sales reached €125.3 million, thanks to the favourable conditions in used car markets, with average sales margins of €740 per unit and €1,058 over the second quarter.
  • Operating expenses reached €329.9 million and the cost to income ratio (excl. UCS result) improved at 49.1%.
  • Net income stood at €352 million, up from €206.8 million in H1 2020.
  • Earning Assets increased by 3.6% at the end of June 2021 compared to 2020, reaching €21.6 million, reflecting the increasing share of higher value electric vehicles.
  • Total funding stood at €18 billion, up slightly from €17.6 billion at the end of 2020, of which 69% consisted of loans from Société Générale.

Partnerships

  • Bansabadell Renting (purchase agreement signed in April) will be integrated in H2 2021 and add around 20,000 vehicles to the funded fleet.
  • ALD acquired MaaS start-up Skipr, aiming to consolidate and accelerate ALD Move, a key objective within the Move 2025 strategy.
  • In July, ALD signed a new partnership with Smart Europe, one of the first 100% EV players in Europe. The partnership covers 17 countries in Europe.
  • ALD will provide white-label operational leasing services to Volvo in Ireland.
  • ALD Netherlands now offers used-car lease on the full inventory of Stern in the Netherlands.

Prime rating

For the first time, ALD has been rated by ISS ESG, one of the main extra-financial rating agencies. ALD is ranked in the second highest decile of the sector and is granted a Prime rating, meaning it fulfils ESG’s requirements regarding sustainability performance in its sector.

Photo copyright: ALD Automotive

Authored by: Benjamin Uyttebroeck