DJ ALD: Q3 & 9M 2020 Trading Update
ALD
ALD: Q3 & 9M 2020 Trading Update
05-Nov-2020 / 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
Paris, 5 November 2020
QUARTERLY FINANCIAL INFORMATION
ALD reports third quarter and nine months 2020 results
· STRONG PERFORMANCE OF REMARKETING: USED CAR SALES RESULT PER UNIT AT EUR
333 ON AVERAGE IN Q3 2020
· UPDATED 2020 GUIDANCE: USED CAR SALES RESULT PER UNIT TO AVERAGE EUR -50
TO EUR 150
· TOTAL FLEET: 1.76 MILLION VEHICLES, UP 1.6% VS. END SEPTEMBER 2019
· LEASING CONTRACT AND SERVICES MARGINS RISING IN LINE WITH FLEET GROWTH
WHEN ADJUSTED FOR IMPACT OF FLEET REVALUATION
· EUR 4.8 MILLION DECREASE IN OVERHEADS IN Q3 2020 VS. Q3 2019
DEMONSTRATING ABILITY TO CONTROL COSTS
· NET INCOME (GROUP SHARE) AT EUR 140.6 MILLION IN Q3 2020, AND EUR 347.5
MILLION IN 9M 2020
Q3 & 9M 2020 Results highlights
· Leasing Contract and Services Margins at EUR 310.1 million in Q3 2020,
and EUR 926.0 million in 9M 2020
· Used Car Sales result positive at EUR 29.7 million in Q3 2020, and EUR
18.0 million in 9M 2020
· Cost of Risk at EUR 11.8 million in Q3 2020, with unchanged
forward-looking provisions, and EUR 59.3 million in 9M 2020
2020 Updated Guidance
· Total Fleet growth (organic) close to 0% versus 2019, plus bolt-on
acquisitions as opportunities arise
· Updated guidance on Used Car Sales result per vehicle to average EUR -50
to EUR 150,
from EUR -250 to EUR 0
· Cost/Income (excluding Used Car Sales result) ratio between 50% and 51%
On 5 November 2020, Tim Albertsen, ALD CEO, commenting on the 9M 2020 Group
Results, stated:
"Q3 2020 saw the used car markets recovering fast after lockdown measures
were softened in Europe. In this context ALD has once again demonstrated its
agility by seizing market opportunities where possible, reflected in the
strong performance of our remarketing activity this quarter. Flexible offers
continue to gain traction as well as used car lease. Our operating and
financial performance in 9M was strong despite inclusion of several
provisions recorded to reflect potential upcoming risks. Careful attention
to costs remains a focus area for ALD, as illustrated by the important cost
savings achieved once again this quarter. We are looking forward to
presenting our business strategy in further details on our Capital Markets
Day to be held on November 12th."
Strong performance underpinned by used car sales recovery
Total Fleet reached 1.76 million vehicles at the end of September 2020, up
1.6% vs. end of September 2019. Organic fleet growth (adjusting for the
impact of the disposal of ALD Fortune Auto Leasing & Renting in China) over
the same period stood at 1.7%. Funded fleet reached 1.37 million vehicles,
up 0.3% over the same period.
Leasing Contract Margin reached EUR 151.7 million and Services Margin EUR
158.3 million in Q3 2020, down 9.5% and 0.3% respectively vs. Q3 2019. Taken
together they decreased by EUR 16.3 million vs. Q3 2019. When adjusted for
the impact of fleet revaluation, Leasing Contract and Services Margins rose
in line with fleet growth. The excess depreciation in Q3 reflects unchanged
assumptions from the H1 Fleet Revaluation.
The contribution to Gross Operating Income from Used Car Sales result
reached EUR 29.7 million in Q3 2020, up from EUR 21.1 million in Q3 2019.
Average sales margin on used vehicles[1] for the quarter came in at EUR 333
per unit. 9M 2020 average was EUR 84 per unit. The number of used cars sold1
in Q3 2020 was 89K, up from 74K in Q3 2019, thanks to the efficiency of
ALD's digital remarketing platforms, combined with a strong recovery of the
used car market. Stock levels have decreased over the quarter.
Operating Expenses decreased by EUR 4.8 million in Q3 2020, reaching EUR
154.1 million, demonstrating ALD's strong ability to control costs in
difficult times. This decrease reached EUR 8.2 million in 9M 2020 when
compared to 9M 2019, a significant achievement. Cost/income ratio (excl. UCS
result) reached 49.7% over the quarter and 50.5% over the first 9 months of
2020, compared to 48.7% in Q3 2019 and 49.3% in 9M 2019.
Impairment charges on receivables reached EUR 11.8 million, rising by EUR
1.1 million from the EUR 10.6 million recorded in Q3 2019. IFRS 9 forward
looking provisions were unchanged vs. June. The total for 9M 2020 reached
EUR 59.3 million vs. 32.4 million in 9M 2019.
As a result, ALD Net Income (Group Share) reached EUR 140.6 million in Q3
2020, down from EUR 146.1 million in Q3 2019, and EUR 347.5 million in 9M
2020, down from EUR 426.8 million in 9M 2019.
2020 Agenda
12 November 2020 Capital Markets Day
10 February 2021 Q4 and FY 2020 results
Press contact
Stephanie Jonville
ALD Communication Department
Tel.: +33 (0)6 46 14 81 90
stephanie.jonville@aldautomotive.com
About
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 6 700 employees around the globe, ALD manages 1.76 million vehicles (at
end-September 2020).
ALD is listed on Compartment A of Euronext Paris (ISIN: FR0013258662;
Ticker: ALD) and is included in the SBF120 index. Société Générale is ALD's
majority shareholder.
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 nine months ending 30 September 2020
was reviewed by the Company's Board of Directors on 4 November 2020 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 Q3 2020 Q3 2019 Var % 9M 9M Var % 9M
Q3 2020 2019 '20/'19
'20/
'19
Leasing Contract 3,327. 3,350. (0.7%)
Revenues 6 0
Leasing Contract (2,735 (2,650 +3.2%
Costs - .2) .3)
Depreciation
Leasing Contract (144.5 (215.3 (32.9%)
Costs - ) )
Financing
Unrealised (0.6) 13.5 (104.8%)
Gains/Losses on
Financial
Instruments
Leasing Contract 151.7 167.6 -9.5% 447.2 497.9 (10.2%)
Margin
Services 1,591. 1,599. (0.5%)
Revenues 3 5
Cost of Services (1,112 (1,133 (1.8%)
Revenues .6) .1)
Services Margin 158.3 158.7 -0.3% 478.8 466.4 +2.7%
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2020 01:30 ET (06:30 GMT)
DJ ALD: Q3 & 9M 2020 Trading Update -2-
Leasing Contract 310.1 326.3 -5.0% 926.0 964.3 (4.0%)
and Services
Margins
Proceeds of Cars 2,365. 2,266. +4.3%
Sold 1 6
Cost of Cars (2,347 (2,202 +6.6%
Sold .1) .1)
Used Car Sales 29.7 21.1 40.5% 18.0 64.5 (72.1%)
result
GROSS OPERATING 339.7 347.4 -2.2% 944.0 1,028. (8.2%)
INCOME 8
Staff Expenses (304.7 (304.8 (0.0%)
) )
General and (120.3 (130.2 (7.6%)
Administrative ) )
Expenses
Depreciation and (42.4) (40.6) +4.5%
Amortisation
Total Operating (154.1) (158.9) -3.0% (467.4 (475.6 (1.7%)
Expenses ) )
Cost/Income 49.7% 48.7% 50.5% 49.3%
ratio (excl UCS
result)
Impairment (11.8) (10.6) 10.5% (59.3) (32.4) +83.1%
Charges on
Receivables
OPERATING RESULT 173.9 177.9 -2.3% 417.2 520.7 (100.0%)
Share of Profit 0.7 0.5 47.0% 1.4 1.4 (19.9%)
of Associates
and Jointly
Controlled
Entities
Profit Before 174.6 178.4 -2.1% 418.7 522.1 +5.0%
Tax
Income Tax (32.2) (31.1) 3.6% (76.8) (90.8) (19.8%)
Expense
Result from 0.0 0.0 10.0 0.0 (15.5%)
discontinued
operations
Profit for the 142.4 147.3 -3.3% 351.9 431.2
Period
Net Income 140.6 146.1 -3.8% 347.5 426.8 (18.4%)
(Group share)
Non-Controlling 1.7 1.2 49.4% 4.4 4.4 (18.6%)
Interests
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[1] Management information
Regulatory filing PDF file
File: ALD Q3 [1]
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 / Third quarter
financial report
EQS News ID: 1145564
End of Announcement EQS News Service
1145564 05-Nov-2020 CET/CEST
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(END) Dow Jones Newswires
November 05, 2020 01:30 ET (06:30 GMT)
