Ayvens, a global sustainable mobility provider of full-service leasing, subscription services and fleet management born from last year’s merger of ALD Automotive and LeasePlan, faced a challenging fiscal 2023 marked by market turbulence, reflected in a decline in earnings and operational shifts. Here’s a review of the company’s financial performance and outlook, based on a recent press release.
Earning assets and leasing
Earning assets surged by 14.2%, bolstered by a sharp rise in vehicle values as Ayvens navigated through a dynamic market. Leasing contract and services margins exhibited robust growth at EUR 2,616.1 million, a significant 38% increase from 2022, driven by the consolidation of LeasePlan and strategic cost management.
Used car sales
The UCS result per unit dipped to EUR 2,400 in 2023, underscoring the impact of market normalization, while Ayvens’ adjusted UCS result per unit aligned with guidance at EUR 1,312. The cost-to-income ratio rose to 63.7%, reflecting the company’s focus on managing operational expenses in a challenging environment.
Net income and returns
Net income (group share) for FY 2023 faced a 32.8% decline, reaching EUR 816.2 million, impacted by market adjustments, and the costs to achieve the integration of LeasePlan. Return on Tangible Equity (ROTE) witnessed a sharp decline to 12.4%, emphasising the influence of changing market dynamics on Ayvens’ profitability.
Q4 2023 performance
The fourth quarter brought additional challenges, with leasing contract and services margins decreasing by 9.5%, primarily due to the negative impact of marked-to-market derivatives and margin pressures. The UCS result per unit in Q4 2023 was EUR 1,706, reflecting the normalisation of the used car market and adjustments related to the LeasePlan purchase price allocation.
Outlook and dividend
Ayvens proposed a dividend of EUR 0.47 per share, signalling a payout ratio of 50%, demonstrating the company’s commitment to shareholder value amidst challenging market conditions. The Common Equity Tier 1 (CET1) ratio, standing strong at 12.5% as of December 2023, underscores Ayvens’ resilience and sound financial position.
Ayvens grappled with a demanding fiscal landscape in 2023, as seen in the decline in earnings. The company’s proposed dividend and robust CET1 ratio highlight its strategic approach to navigating through turbulent times.
