Sixt shares are still falling: High demand is driving Sixt’s profits

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Sixt was able to charge higher rental prices because people are traveling significantly more again after two years of the corona pandemic and are therefore booking rental cars more often. In addition, there is still a shortage of vehicles on the market because car manufacturers are struggling with production cutbacks. Overall, the quarter developed significantly better than analysts had on average on the slip. On the stock exchange, Sixt’s ordinary shares, which have been listed in the MDAX since March, fell by up to eight percent in early XETRA trading at times. The losses on the paper are currently 6.86 percent at EUR 116.80.

The proceeds between April and June increased by almost half compared to the previous year to almost 744 million euros, as the company announced on Wednesday in Pullach near Munich. In southern Europe in particular, the Management Board recorded a high volume of travel after corona-related restrictions were lifted in many countries. Despite the scarcity of available vehicles, the management was able to expand the fleet, it said. In fact, however, investments in the number of vehicles fell by around 44 percent, and the investment volume was also down.

With its US strategy, Sixt has primarily targeted airports and business centers: The expansion of rental stations, particularly at the major hubs of American airlines, should ensure that more corporate customers make reservations with the Pullachers. The company currently operates stations at 36 of the top 50 US airports. In Canada, half of the ten most important airports should be targeted using the same method.

In the second quarter, the United States and Germany each accounted for less than 30 percent of consolidated sales. Meanwhile, the development of earnings in the Europe segment was much more impressive: compared to the previous year, the division increased by almost 75 percent. Even then, Europe was the most important segment, but the distance to the other two markets has now increased significantly.

Before taxes, the company’s profit was around 130 million euros, almost two-thirds more than in the same quarter of the previous year. After-tax earnings rose by almost half to around 94 million euros.

Management stuck to its sales target and specified the outlook for profitability. The high demand is likely to continue in the summer months. However, Sixt is burdened by the limited availability of vehicles because the car manufacturers are still able to build significantly fewer models due to supply chain problems. In 2022, however, group sales are likely to be significantly higher than the previous year’s figure of EUR 2.28 billion. In terms of pre-tax earnings (EBT), the board now wants to reach the upper end of 380 to 480 million euros – so far only the range has been mentioned.

/ngu/men

PULLACH (dpa-AFX)

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