Sixt Stays Cautious on Profit Forecast Despite Record Sales
Strong Demand in Rental and Leasing Business Drives Growth
The German car rental company Sixt SE has announced record sales for the 2022 fiscal year, driven by strong demand for both rental and leasing services. However, the company remains cautious in its profit forecast due to ongoing economic uncertainties.
Record-Breaking Sales
Sixt reported total sales of €3.3 billion for the year ending December 2022, a significant increase from the previous year's €2.6 billion. The growth was primarily attributed to the company's core rental and leasing businesses, with revenue from car rentals rising by 20% and leasing revenue climbing by 15%.
Strong Demand for Mobility Services
Despite the economic challenges, Sixt has benefited from the increased demand for mobility services in the post-pandemic era. As travel restrictions eased, leisure and business travel picked up, leading to higher demand for car rentals. Additionally, the ongoing semiconductor shortage in the automotive industry has made leasing a more attractive option for customers seeking new vehicles.
Cautious Profit Forecast
Despite the record sales, Sixt remains cautious in its profit forecast for 2023. The company expects to achieve an adjusted earnings before interest and taxes (EBIT) margin of 11-12%, lower than the 13.3% margin achieved in 2022. This caution is attributed to ongoing economic uncertainties, including rising inflation and geopolitical tensions.
Expansion Plans Continue
Despite the cautious profit forecast, Sixt remains committed to its growth strategy, with plans to expand its fleet and geographical reach. The company plans to invest €1.2 billion in its rental and leasing businesses in 2023 and will continue to explore new markets and partnerships.
Key Takeaways
- Sixt reported record sales of €3.3 billion for 2022, driven by strong demand for rental and leasing services.
- The company remains cautious in its profit forecast due to ongoing economic uncertainties.
- Sixt plans to continue investing in its growth strategy and will explore new markets and partnerships.
