LeasePlan announces Q1 2021 results
LeasePlan Corporation N.V. (“LeasePlan”; the “Company”), one of the world’s leading Car-as-a-Service (“CaaS”) companies and a leading pan-European used-car market place, today reports its Q1 results.
Q1 2021 financial highlights
Net result of EUR 181 million (+810%)
Underlying net result of EUR 166 million (+44.8%)
Car-as-a-Service:
o Underlying Lease and Additional Services gross profit of EUR 366 million (+1.0%) driven by strong Damage Services & Insurance results and lower costs for expected credit losses
o PLDV and End of Contract Fees Gross Profit of EUR 61 million (+536%) primarily driven by favourable used-car pricing
o Operating expenses of EUR 205 million (+5.8%) which includes continued investments in our digital platforms
o Underlying net result of EUR 190 million (+37.9%)
CarNext:
o Revenues stable at EUR 169 million (-1.5%) with lower B2C retail sales (-18.4%) due to COVID-19-related temporary store closures, offset by increased third-party and ancillary services sales
o Underlying net result of EUR –24 million (-4.0%) including continued investments in key markets focussed on accelerating future growth
Announcement of Sale and Purchase Agreement through which LeasePlan will divest 100% of its shares in LeasePlan Australia and New Zealand to SG Fleet. LeasePlan will hold a 13.0% stake in SG Fleet post-closing of the transaction
Quarter-end liquidity buffer of EUR 7.6 billion
This was the best quarter in the history of LeasePlan. This excellent performance is a reflection of the plan we put in place over a year ago to manage the impact of the COVID-19 crisis on our business, and was supported by strong used-car pricing, strong Damage and Insurance results, and lower than expected customer defaults due to our high-quality customer base.
The underlying strength of our business is confirmed by our record-high order book, although the global shortage of computer chips means some of this growth will be deferred to later in the year. We also continued to lead the transition to zero emission mobility in the industry, with EVs now representing 16.9% of new orders in Q1. In addition, CarNext made good progress in the quarter with the expansion of its ancillary service offering and online sales increasing exponentially.
Looking forward, we’re very excited about what’s next. The subscription megatrend means there is significant growth potential in all our key market segments. We are well placed to capture this growth thanks to our continuing transformation from a local analogue business model to a completely digital global business model, underpinned by our Next Generation Digital Architecture. Our approach is already producing results, including rapid growth in online sales in the SME and Private segments, which we expect will only accelerate as the digital leasing market expands.
