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ALD
ALD: Trading update on Q1 2019 Results
03-May-2019 / 07:30 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
trading update
Paris, 3 May 2019
ALD TRADING UPDATE ON Q1 2019 RESULTS
· TOTAL FLEET AT 1.68 MILLION VEHICLES
· LEASING CONTRACT AND SERVICES MARGINS UP 4.7% VS. Q1 2018
· SOLID CAR SALES RESULT AT EUR 258 PER VEHICLE, INSIDE GUIDANCE RANGE OF
EUR 100 TO EUR 300
· NET INCOME (GROUP SHARE): EUR 133.8 MILLION
· CONFIRMING FULL YEAR 2019 GUIDANCE
FIRST QUARTER 2019 RESULTS HIGHLIGHTS
? Total Fleet: 1.68 million vehicles managed worldwide at end March 2019, up
1.1% vs. end December 2018 and up 9.3% vs. end March 2018
- Leasing Contract and Services Margins together up 4.7%
- Car Sales Result at EUR 19.0 million
- Gross Operating Income: EUR 332.3 million, up 1.1% vs. Q1 18
- Cost-Income ratio excluding Car Sales Result[1] improved to 49.6% from
51.1% a year earlier
- Net Income (Group share): EUR 133.8 million in Q1 19, down 2.1% vs. Q1 18
KEY STRATEGIC AND COMMERCIAL INITIATIVES
- Stern Lease acquisition and partnership agreement in the Netherlands
- International framework agreement with Chargepoint
- Partnership with Belgian retail chain Hubo and Nissan
On 3 May 2019, Mike Masterson, ALD CEO, commenting on the Group Results,
stated:
"In the first quarter of 2019 ALD has continued to develop its commercial
activity and made a significant bolt-on acquisition, reinforcing our
leadership position. Our private lease offering is encountering success in a
number of important markets thanks to our state-of-the-art digital
solutions, which we continue to optimize and deploy more widely to boost
growth in this segment. At the same time, in the context of a general
transformation impacting the car industry, we remain focused on promoting
electric and hybrid vehicles and reducing the share of diesel in our fleet.
Our financial performance in Q1 is in line with our guidance for 2019, which
we are confident of achieving thanks to the rigourous management of our
costs and risks. ALD is determined to pursue its strategy of delivering
sustainable growth, building on its constant customer focus and backed by
the service excellence of its teams."
BUSINESS DEVELOPMENT ON TRACK TO REACH GROWTH TARGET
ALD maintained good fleet growth during the first quarter of 2019. Total
fleet rose to 1.68 million vehicles at the end of March, increasing by 1.1%
vs. the end of December 2018 and 9.3% vs. the end of March 2018. Private
lease development was dynamic, confirming the 150K vehicles target set for
the end of 2019. All of this quarter's fleet growth was organic and all
regions contributed.
Q1 19 ended with a strong order bank, reflecting longer delivery periods for
certain types of vehicles (in particular EV and hybrid vehicles) and ALD is
confident of reaching its total fleet organic growth guidance of 5-7% for
2019.
GOOD FINANCIAL PERFORMANCE
Leasing Contract and Services Margins taken together rose by 4.7% in the
first quarter of 2019 vs. the same quarter last year. This performance was
achieved in the context of an ongoing focus on the promotion of electric and
hybrid vehicles and the repricing of Diesel residual value, putting pressure
on Services margin growth.
Demand for used cars was good this quarter, supporting prices. As a result,
Car Sales Result per unit[2] in Q1 19 maintained itself at a robust level at
EUR 258. Although down from EUR 417 in Q1 18, this represented an increase
from EUR 235 in the previous quarter, and was well inside the guidance range
of EUR 100 to EUR 300 per vehicle provided at the start of the year.
The number of used cars sold2 in Q1 19 reached c. 74 thousand, rising from
c. 72 thousand in the preceding quarter and c. 71 thousand in Q1 18. In line
with previous quarters, more than 60% of used cars were sold via electronic
platforms. Average stock turnover[3] remained stable over the quarter.
Car Sales Result in Q1 19 was EUR 19.0 million, rebounding from EUR 17.1
million in the previous quarter, though down markedly from EUR 29.6 million
in Q1 18.
Gross Operating Income for the first quarter of 2019 came in at EUR 332.3
million, up 1.1% from EUR 328.7 million a year earlier.
Operating Expenses amounted to EUR 157.5 million in Q1 19, showing a
moderate rise of 3.5% vs. Q1 18. As a result, the Cost-Income ratio
excluding Car Sales Result[4] improved to 49.6%, from 51.1% recorded a year
earlier, continuing its downward trend driven by scale benefits and
automation of processes throughout the organisation.
Impairment charges on receivables were up from a low EUR 6.4 million in Q1
18, but remained well under control at EUR 10.4 million in Q1 19 and down
from the two previous quarters.
ALD's effective tax rate stood at a low 17.6%, reflecting the continued
strong, favourable impact of the Italian Stability Law.
ALD's solid operating performance resulted in Net Income (Group share) for
Q1 19 of EUR 133.8 million, down 2.1% from Q1 18.
The Group's consolidated results as at 31 March were examined by the Board
of Directors, chaired by Didier Hauguel, on 2 May 2019.
KEY STRATEGIC AND COMMERCIAL INITIATIVES
Stern Lease acquisition and partnership agreement in the Netherlands
On 1 March 2019, ALD signed an agreement to acquire SternLease B.V., the
leasing arm of Stern Group, the Dutch listed market leader in automotive
retail. SternLease B.V. holds a fleet of c. 13,000 vehicles rented to SMEs
and private individuals in the Netherlands and provides leasing services
through direct distribution and Dealergroup Stern's network of 85 local
dealerships.
On top of the acquisition, a dedicated distribution agreement has been
signed to provide access to this local dealership network for the exclusive
distribution of ALD leasing services for SMEs and private individuals.
International framework agreement with Chargepoint
In order to facilitate and accelerate the transition to e-mobility for its
clients, ALD has signed an international framework agreement with
ChargePoint, the world's leading electric vehicle (EV) charging network. A
joint end-to-end electric vehicle solution will be rolled out across Europe
over the next few months.
This agreement will reinforce ALD's EV coverage by improving and
complementing existing e-mobility partnerships, with energy suppliers in
particular.
Partnership with Belgian retail chain Hubo and Nissan
ALD recently entered into a partnership with Belgian retail chain Hubo to
sell private lease via 40 of their shops, offering Nissan vehicles. This
100% online offer will rely on ALD's end to end digital platform and is the
opportunity to promote digital solutions to other potential partners.
2019 GUIDANCE
For 2019, the Group expects 5-7% organic growth in Total Fleet. Bolt-on
acquisitions might add to this growth, as opportunities arise.
Car Sales Result per unit is expected to average between EUR 100 and EUR
300.
In addition, the Group aims to improve its Cost/Income (excluding Car Sales
Result) ratio further and expects it to reach c. 49% in 2019 (vs. 50% in
2018).
Given the strong capital generation from its activities, the Group targets a
pay-out ratio of 40-50% for 2019, a level which allows it to maintain a high
rate of growth without significantly impacting its total equity to total
assets ratio.
To summarise ALD's guidance for 2019:
· Total Fleet is expected to grow organically 5-7% compared to 2018, plus
bolt-on acquisitions
· Car Sales Result to average between EUR 100 and EUR 300 per vehicle
· Cost/Income (excluding Car Sales Result) to improve to c. 49%
· Total Equity / Total Assets ratio between 15% and 17%
· Target pay-out ratio between 40% and 50%.
CONFERENCE CALL FOR INVESTORS AND ANALYSTS
Date: 3 May 2019, at 10.00 am Paris time - 9.00 am London time
Speakers: Mike Masterson, CEO, and Gilles Momper, CFO
FINANCIAL CALENDAR
22 May 2019 General assembly of shareholders
29 May 2019 Detachment of the dividend
31 May 2019 Payment of the dividend
1 August 2019 Q2 and H1 2019 results
6 November 2019 Q3 2019 trading update
Press contact:
Stephanie Jonville
+33 (0)1 42 14 38 99
stephanie.jonville@aldautomotive.com
ALD
ALD is a global leader in mobility solutions providing full service leasing
and fleet management services across 43 countries to a client base of large
corporates, SMEs, professionals and private individuals. A leader in its
industry, ALD places sustainable mobility at the heart of its strategy,
delivering innovative mobility solutions and technology-enabled services to
its clients, helping them focus on their everyday business.
With over 6,500 employees worldwide, ALD manages 1.68 million vehicles (at
end March 2019).
ALD is listed on Euronext Paris, compartment A (ISIN: FR0013258662; Ticker:
ALD) and its share is included in the SBF120 index. ALD's controlling
shareholder is Societe Generale.
For more information, you can follow us on Twitter @ALDAutomotive [1] or
visit www.aldautomotive.com [2].
This document contains forward-looking statements relating to the targets
and strategies of ALD SA (the "Company") and its subsidiaries (together with
the Company, the "Group"). These forward-looking statements are based on a
series of assumptions, both general and specific, in particular the
application of accounting principles and methods in accordance with IFRS
(International Financial Reporting Standards) as adopted in the European
Union. These forward-looking statements have also been developed from
scenarios based on a number of economic assumptions in the context of a
given competitive and regulatory environment. The Group may be unable to: -
anticipate all the risks, uncertainties or other factors likely to affect
its business and to appraise their potential consequences; - evaluate the
extent to which the occurrence of a risk or a combination of risks could
cause actual results to differ materially from those provided in this
document and the related presentation. Therefore, although the Company
believes that these statements are based on reasonable assumptions, these
forward-looking statements are subject to numerous risks and uncertainties,
including matters not yet known to it or its management or not currently
considered material, and there can be no assurance that anticipated events
will occur or that the objectives set out will actually be achieved.
Important factors that could cause actual results to differ materially from
the results anticipated in the forward-looking statements include, among
others, overall trends in general economic activity and in the Group's
markets in particular, regulatory changes, and the success of the Company's
strategic, operating and financial initiatives. More detailed information on
the potential risks that could affect the Company's financial results can be
found in the Registration Document and in the Last Financial Report filed
with the French Autorité des Marchés Financiers. Investors are advised to
take into account factors of uncertainty and risk likely to impact the
operations of the Group when considering the information contained in such
forward-looking statements. Other than as required by applicable law, the
Company does not undertake any obligation to update or revise any
forward-looking information or statements. Unless otherwise specified, the
sources for the business rankings and market positions are internal. The
financial information presented for the year ending 31 December 2018 was
reviewed by the Board of Directors on 6 February 2019 and has been prepared
in accordance with IFRS as adopted in the European Union and applicable at
this date.
Appendix
Consolidated income statement
in EUR million Q1 2019 Q1 2018 Change in %
Q1 '19/'18
Leasing Contract Margin 165.2 146.9 +12.4%
Services Margin 148.1 152.2 (2.7%)
Leasing Contract and Services 313.3 299.1 +4.7%
Margins
Car Sales Result 19.0 29.6 (35.7%)
GROSS OPERATING INCOME 332.3 328.7 +1.1%
Total Operating Expenses (157.5) (152.2) +3.5%
Cost/Income ratio (excl CSR) 50.3% 50.9% na
(2)
Impairment Charges on (10.4) (6.4) +62.7%
Receivables
Non-Recurring Income 0.0 0.0 na
(Expenses)
OPERATING RESULT 164.5 170.2 (3.4%)
Share of Profit of Associates 0.4 0.3 +36.8%
and Jointly Controlled
Entities
Profit Before Tax 164.9 170.5 (3.3%)
Income Tax Expense (29.1) (32.0) (9.1%)
Profit for the Period 135.8 138.5 (1.9%)
Net Income (Group share) 133.8 136.7 (2.1%)
Total fleet and selected
balance sheet figures
in EUR million, except stated 31.03.2019 31.03.2018 Change YTD
otherwise
Total Fleet(1) (in '000 of 1,682 1,538 +9.3%
vehicles)
Notes:
(1) On and off balance sheet
(2) Defined as: (Total Operating Expenses) / (Leasing Contract Margin +
Services Margin)
=---------------------------------------------------------------------------
[1] Calculated as a 4-quarter rolling average
[2] Management information
[3] Measured as the ratio between average stock for the month (start and
end) and the number of cars sold during the month, multiplied by the number
of days in the month
[4] Calculated as a 4-quarter rolling average
Regulatory filing PDF file
Document title: ALD Trading update on Q1 2019 Results
Document: http://n.eqs.com/c/fncls.ssp?u=YVAAIHBMXK [3]
Language: English
Company: ALD
1 Rue Eugène et Armand Peugeot
92500 Rueil-Malmaison
France
Internet: https://www.aldautomotive.com/
ISIN: FR0013258662
Euronext Ticker: ALD
AMF Category: Additional regulated information to be pubicly disclosed
under the legislation of a Member State / First quarter
financial report
EQS News ID: 806615
End of Announcement EQS News Service
806615 03-May-2019 CET/CEST
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May 03, 2019 01:30 ET (05:30 GMT)
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