LeasePlan today publishes its first quarter 2017 financial results. To view the Q1 results overview click here
• Gross profit increased by 5% to EUR 399 million on the back of 6% fleet growth and continued resilient income streams.
• Underlying net result grew by 21% to EUR 146 million, mainly driven by operational excellence improvements
• Underlying return on equity was up 2.8 percentage points to 18.6%, mainly due to the higher underlying net result.
LeasePlan’s fleet grew from 1.6 million vehicles at the end of first quarter of 2016 to 1.7 million vehicles at the end of the first quarter of 2017. Growth continued in all segments and in all major markets with relatively strong contributions from Germany, the Netherlands and Italy.
In addition, a further roll out of fleet insurance products and services across our group resulted in a growth of the insured fleet by 54,000 vehicles during the past 12 months. In several European countries, the improvement of the insurance market led to a reversal of the downward pressure on premiums.
We also saw a continued increase in demand from international customers for consultancy, covering areas including cost optimisation and fleet policy.
Sustainability was also a growth area, with a strong interest among our corporate customers for low-emission value propositions. We will support this increasing demand via our new Electric Vehicle Centre of Expertise, which we launched in Q1.
Mobility as a service
Finally, in Q1, we also took steps to capitalize on additional growth opportunities in the ‘mobility as a service’ segment, including the launching of a pan-European partnership with Uber. The partnership, which builds on existing local initiatives, will enable us to bring the benefits of a full operational lease to Uber’s growing fleet of partner-drivers.
LeasePlan will relocate its head office from Almere to Amsterdam. As of 6 June 2017, LeasePlan Corporation will be located in the UN Studio building, (Gustav Mahlerlaan) in the Zuidas business district. LeasePlan Bank will also move into the same building. LeasePlan Netherlands’ office remains in Almere.
Tex Gunning, CEO of LeasePlan:
LeasePlan has delivered yet another strong set of results in Q1 2017, highlighting again the strong and resilient nature of our business. In addition, in Q1, we were delighted to launch a pan-European partnership with Uber, underlining our increasing presence and expertise in the fast-growing ‘mobility as a service’ segment. From an operational perspective, we also successfully rolled out the “Power of One LeasePlan” initiative within the company in Q1. Going forward, this will enable us to leverage the strength of our organisation across all LeasePlan countries, the value chain and our functional competencies – enabling us to quickly unlock significant additional value for our customers and investors.