LeasePlan grows profits and global fleet
LeasePlan has reported strong underlying net result growth in Q2 as well as an increase in its serviced fleet.
The Q2 2018 results saw the underlying net result rise 10.2% to €161m while the net result was up 13.2% to €152m. Underlying gross profit was up 3.4% in Q2 to €414m (H1 down 1.9% to €785m, including the €30m impairment reported in Q1).
The firm said the growth was driven by significant contributions from Lease & Additional Services, up 6.4% in Q2 to €378m (H1 up 7.0% to €753m excluding impairments), supported by the ongoing impact of ‘The Power of One LeasePlan’ operational excellence programme.
Total gross profit was impacted by the predictable normalisation of the Profit/Loss on Disposal of Vehicles (as communicated in previous quarters) which declined by €10m in Q2 (H1 down by EUR 34 million).
LeasePlan also grew its serviced fleet 6.7% in Q2 to 1.8 million vehicles, driven by growth in the corporate fleet and SME segment.
The CarNext.com B2C and B2B digital marketplace saw volumes in the higher-margin B2C business increase by 70% in Q2 to 11,600 vehicles compared to Q2 2017 (H1 up 60%). B2C penetration increased to a run-rate of 19% of total cars coming off lease and sold by LeasePlan. Used car leasing, which has been successfully introduced in 7 additional countries, grew by 300% to 2,400 newly contracted vehicles in Q2, compared to 600 vehicles in Q2 2017.
In B2B, CarNext.com began the roll-out of its new B2B marketplace trader app and saw auction price improvements. Over the period, roughly 20% of total sales were cross border, as CarNext.com capitalised on the arbitrage opportunity of matching demand with vehicle supply across geographies.
Commenting on the figures, Tex Gunning, CEO of LeasePlan, said: “Our results demonstrate the strength of LeasePlan’s strategy and positive impact of our Power of One LeasePlan operational excellence programme. We have more cars on the road than ever before, our underlying net result increased and we delivered a strong improvement in our return on equity.
“Looking ahead, our strategy to lead the megatrend from ownership to subscription – ultimately providing any car, anytime, anywhere – ensures we will continue to deliver significant value creation.”