EQS-News

SIXT sets new revenue record in first quarter, Q1 EBT impacted by market factors – return to profitability in Q2 with positive outlook for full year - Seite 2

 

The company’s solid operating performance is reflected in first quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), which reached an all-time high of EUR 217.8 million.

 

Challenging market conditions

As predicted at the beginning of the year, earnings before taxes (EBT) were negative in the traditionally weak first quarter. At minus EUR 27.5 million, it was at the lower end of the previously forecasted range. In addition to the further deterioration in economic prospects, particularly for the eurozone, a repeated postponement of the interest rate reversal and a recent decline in market price levels in some regions higher vehicle costs are the main cause. This development is mainly due to the, in some cases significant, decline in residual values for used cars. This trend has recently intensified, with used car prices in the US market, for example, falling by an average of 1.9% between March and mid-April (Manheim Used Vehicle Value Index, April 2024). In Germany, the average depreciation of battery electric vehicles (BEV), whose residual values have come under particular pressure, was 4.0% in the first three months of the year (AutoScout24 Gebrauchtwagen-Preis Index (AGPI)).

 

Counter measures taking effect

SIXT has been working to counter the deteriorating market conditions since the beginning of the year. The measures include initiatives aimed at generating additional, profitable revenue and measures to further increase efficiency. Another important lever is the continued reduction in the number of electric vehicles and the increased in-fleeting of new vehicles acquired at more favourable conditions compared to the years in which the market faced vehicle shortages. In Germany, for example, the average depreciation per vehicle per day could already be reduced by more than 10% year-on-year in the first quarter. In addition, SIXT is paying close attention to maintaining a conservatively planned fleet at a tight level, where customer demand and vehicle availability are always at an optimum margin to achieve positive effects in terms of utilisation and pricing.