Sixt Achieves Record Revenue, Earnings for 2022
Sixt is planning another substantial expansion of its fleet in 2023 and expects greater earnings before taxes of EUR 430 million to EUR 550 million. Pictured here is Erich Sixt at the company's North American headquarters grand opening.
Following a record 2021, Sixt reached historic highs in revenue and earnings for 2022 — and expects to top those numbers for 2023.
According to preliminary figures, the international mobility services provider achieved year-on-year growth in consolidated revenue of 34.3% to EUR 3.07 billion, with all three segments — Europe, North America, and Germany — contributing to this growth, the company said in a statement.
Sixt said the continued positive market environment and demand for rentals, as well as prices, was a benefit last year. Consolidated earnings before taxes (EBT) increased, reaching an all-time high of EUR 550.2 million, an increase of 24.4% YOY and of 78.5% compared to 2019.
It also increased its global rental fleet in its corporate countries by more than 10% on an annual average compared to 2021.
Alexander Sixt, co-CEO of Sixt SE, said: “2022 was the second record year in a row for Sixt. We invested heavily last year, in our fleet, staff, technology and marketing, for example. We have thus laid the foundations for future growth and the further sharpening of our premium positioning. Despite these investments and thanks to our continued internationalization, operational improvements, and an increasingly positive market environment, we were able to achieve an EBT margin of 17.9%, significantly exceeding our basic target return of 10%.”
Sixt increased its average stock of rental vehicles in its corporate countries by more than 10% to 138,400 cars last year despite the tight procurement situation.
The electric share (incl. plug-in hybrids and mild hybrids) of the rental fleet in Europe, where Sixt is aiming for an e-share of 70 to 90% by 2030, was increased from around 10% to more than 14% YOY as part of its sustainability program adopted in 2022.
Consolidated revenue increased by 34.3% from EUR 2.28 billion to EUR 3.07 billion and was in the upper half of the target range of EUR 2.8 to 3.1 billion.
It achieved the strongest growth in the North America segment, with the United States its largest single market for Sixt worldwide. Revenue in North America increased by 55.4% to EUR 908.2 million. The Europe segment (excluding Germany) achieved growth of 35.1% to EUR 1.28 billion. The German segment also made a substantial contribution to its growth by posting a 17.6% increase to EUR 869.8 million.
Sixt said it will continue to invest in growth and quality in 2023, focusing on four key areas: service excellence through investments in existing stations and the digitalization and automation of services; operational excellence to reduce costs and increase capacity utilization; expansion of its premium rental fleet and global network, particularly by adding airport and downtown stations in the U.S. and in the van and truck sector; and transformation of its rental fleet toward electric drives and acceleration of enthusiasm for this technology among customers.
The company expects marketing expenses in the first quarter of 2023 to be high compared to previous years as a result of the major U.S. campaign underway.
“We expect to see a significant increase in consolidated revenue for the full year 2023,” Alexander Sixt added. “Group EBT in 2023 is projected to be in the range of EUR 430 million to EUR 550 million. The upper end of this range is thus on course for the record year 2022 and the lower end is clearly above the pre-Covid record level. We are encouraged by the continued improvement in operational execution and continued international and product expansion. Furthermore, our forecast is based on demand returning to pre-pandemic levels, as seen in 2022 and the first weeks of 2023, but at higher prices.”
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