ALD / LeasePlan has boosted its leasing contract margin to €315.3m in H1 2023 versus €62.7m in H1 2022 on the back of a reduction in depreciation costs driven by exceptionally high used car prices.

Publishing its half-yearly (H1) financial results for 2023, the car leasing giant’s results come after ALD’s £4.1bn (€4.8bn) acquisition of LeasePlan was completed by a consortium led by TDR Capital in May.

The lessor said its gross operating income reached €1.5bn (£1.3bn) in H1 2023, up 23.8% compared to the first six months of 2022. The Group’s net income was €564.5m (£486m) in H1 2023, down 7.9% from €612.8m (£527m) in H1 2022.

Meanwhile, total contracts for ALD / LeasePlan stood at almost 3.4 million at the end of June 2023, up by 4.3% compared to the end of June 2022. LeasePlan’s contribution amounted to 1.6 million contracts as of the end of June 2023.

The Group’s fleet management contracts increased 9.1% compared with June 2022, to reach 724,000 vehicles. The company said year-on-year growth was driven by a new banking partnership.

Tim Albertsen, CEO of ALD LeasePlan, said: “Having finalised the acquisition of LeasePlan last May, our teams are thrilled to embark on this exciting journey and to leverage our strengths and complementarities to create the leading global sustainable mobility player in an industry where size matters.

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“The integration of LeasePlan is progressing according to plan. A number of key initiatives, led by the industry’s best talent, are well underway.

“Two months into the integration, we’ve already reached our first objectives. We will continue executing our integration plan at the same rapid pace and I am confident that we will start reaping some benefits very soon.”

H1 2023 results highlights

Total Contracts 3.391 million contracts managed worldwide at the end of June 2023
Funded fleet 2.667 million vehicles, up 3.0% vs. end of June 2022
Leasing Contract and Services Margins at €1,255.4m, up 54.6% vs. H1 2022, driven by a reduction in depreciation costs and the consolidation of LeasePlan
Used Car Sales result at €285.4m, vs. €432.7m in H1 2022
Operating expenses at €632.1m, including LeasePlan-related costs vs. €403.7m in H1 2022
Cost of Risk at a low level at 13 bps vs. 16 bps in H1 2022
The result from discontinued operations of €-91.3m