Sixt SE: Sixt increases earnings before taxes (EBT) by almost 16%
Sixt SE / Key word(s): Preliminary Results
24.03.2014 / 10:00
Sixt increases earnings before taxes (EBT) by almost 16%
– Consolidated operating revenue up by 6.2% to EUR 1.51 billion
– Rental revenues climb 7.5%
– Foreign business continues to see strong growth rates
– Consolidated profit up by 19.2% to EUR 94.4 million
– CEO Erich Sixt: “We generated record level results in 2013.”
– Shareholders to receive dividend of EUR 1.00 per ordinary share and
– 2014 expected to see slight revenue increases and stable to slightly
Pullach, 24 March 2014 -Sixt, Germany’s biggest car rental company and one of the leading international mobility service providers, increased consolidated earnings
Sixt communicated the preliminary key figures for financial year 2013 during the company’s annual press conference in Munich today.
Erich Sixt, CEO of Sixt SE: “We are very pleased with the business performance of 2013. We managed to exceed our original expectations significantly and generated a result that is on record level, despite the start-up losses for key strategic growth initiatives. Our focus continues to be on the extension of operations abroad with the expansion in the US making good progress. Sixt also gained substantial market shares in key European markets, such as France and Spain. We want to continue on this track in 2014.”
Sixt Group’s revenue and earnings development in 2013
– Rental revenues increased 7.5% to EUR 1.03 billion (2012: EUR 953.7 million). Sixt recorded strongest gains in its foreign operations, which climbed 18.9% to EUR 414.9 million (2012: EUR 349.0 million). 41% of rental revenues were therefore generated outside of Germany (2012: 37%). Next to the US, pleasant double-digit growth rates were recorded above all in France and Spain. Domestic rental revenues rose slightly by 1.0% and with increasing momentum over the course of the year to EUR 610.7 million (2012: EUR 604.7 million).
– Leasing revenue amounted to EUR 391.8 million in 2013, a gain of 2.3% on 2012 (EUR 382.9 million). Positive impulses came from a substantial growth in the contract portfolio, above all in the fleet management and private customer leasing segments.
– Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) rose 6.2% to EUR 1.51 billion (2012: EUR 1.43 billion). The international share of operating revenue continued to increase to 34% (2012: 31%).
– The Group’s total consolidated revenue climbed 4.3% to EUR 1.66 billion
– Consolidated earnings before taxes (EBT) rose 15.6% and thus clearly outperformed revenue growth. At EUR 137.1 million EBT was on a record level. As was already communicated, the result includes start-up losses for such growth initiatives as the expansion in the USA or the carsharing joint venture DriveNow.
– The consolidated profit after taxes came to EUR 94.4 million, a plus of 19.2% (2012: EUR 79.2 million).
Key drivers for the Group’s encouraging earnings performance in 2013 were:
– Substantial growth of foreign business,
– tangible market upturn as from the summer 2013, resulting in the strongest Q3 in company history,
– accelerated marketing and sales activities in the private and business customer segment as well as
– sustainable improvement in the financing conditions of the Group.
Excellent equity base
Dr. Julian zu Putlitz, CFO of Sixt SE: “Sixt’s net asset and financial structure is rock solid. Our consistent finance management has earned us a reputation with investors and banks as reliable partner. This puts us more and more in a position, where we can refinance our strategic and operative measures at attractive conditions.”
High distribution ratio of 51% proposed
Vehicle value of investments increased
Outlook for financial year 2014
Against this background the Managing Board expects for 2014 to generate a slight increase in consolidated operative revenue compared to the previous year. Growth stimulus should once again come predominantly from the markets abroad. On the basis of a continued demand-driven and cautious fleet policy and a consistent cost management the aim is to achieve a stable to slightly higher Group EBT.
Developments in the operating business units
In fiscal year 2013 Sixt continued to expand its activities in the US started in 2011.
The premium carsharing service DriveNow is developing more and more dynamically. In 2013 it won around 140,000 new customers with the number of registered users almost tripling. The joint venture is managed together with BMW and already has 250,000 members across five German sites. The start of DriveNow in Hamburg at the beginning of November 2013 was highly successful.
The rental revenues for the Vehicle Rental Unit increased 7.5% in 2013 to EUR 1.03 billion (2012: EUR 953.7 million). Outside of Germany Sixt recorded gains of 18.9% to EUR 414.9 million (2012: EUR 349.0 million) with all foreign subsidiaries, apart from the US, making a positive contribution to earnings. The Business Unit’s total revenue climbed 7.6% to EUR 1.12 billion (2012: EUR 1.04 billion). The average fleet size of the Vehicle Rental Business Unit in the Sixt-Corporate Countries climbed around 2% to 78,000
The Business Unit’s earnings before taxes (EBT) rose 15.0% and above average to revenue to EUR 122.3 million (2012: EUR 106.4 million). This way the return on sales was 0.7 percentage points up to 10.9%.
In 2013 Sixt Leasing registered a successful business performance and developed better than the industry as a whole. The number of leasing contracts in the Sixt-Corporate Countries rose by 22.5% to the year end, up by 14,000 to 76,200 contracts. This encouraging development is primarily due to more contracts in the fleet management and
Leasing revenue for 2013 was a slight 2.3% upturn from the year before from EUR 382.9 million to EUR 391.8 million. The Business Unit’s total revenue (including the usually fluctuating revenue from the sale of used leasing vehicles) amounted to EUR 534.7
Note: As announced, Sixt Group’s attested and final Annual Financial Statements for 2013 will be published on 22 April 2014.
End of Corporate News
24.03.2014 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.
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