Ayvens reports robust Q3 and nine-month 2024 results

Ayvens has posted solid financial results for Q3 and the first nine months of 2024, demonstrating resilience in a fluctuating market environment and continued momentum in its integration efforts. The company achieved strong leasing and services margins while maintaining cost efficiency, despite certain non-recurring challenges.

Integration milestones have also progressed as planned, underscoring Ayvens’ dedication to its long-term growth strategy.

In Q3 2024, Ayvens reported underlying leasing and services margins of 521 basis points (bps), slightly down from 539 bps in Q2 2024, with a total margin of €647 million, reflecting a 6.8% decline from the previous quarter. This decrease was largely due to a €66 million fluctuation in derivative mark-to-market valuations and a dip in breakage revenues. For the nine months of 2024, the company achieved margins of €2,047 million, marking an underlying basis of 530 bps.

The Used Car Sales (UCS) segment saw results per unit of €1,420, excluding the impact of depreciation and Purchase Price Allocation (PPA), down from €1,480 in Q2 2024. Including depreciation and PPA effects, UCS results per unit stood at €493, a reduction from €575 in the previous quarter.

Synergies gained strength, reaching €32 million in Q3, up from €27 million in Q2. Year-to-date synergies stand at €80 million, showing Ayvens’ commitment to realising efficiencies from the integration.

Ayvens maintained its cost discipline, with the cost-to-income ratio at 63.4% in Q3 and 64.3% for the nine-month period, reflecting strong operational efficiency. The cost of risk slightly decreased to 22 bps from 23 bps in Q2, aligning with Ayvens’ continued efforts to monitor risk prudently. The net income attributable to shareholders reached €147 million for Q3, totalling €524 million for the nine months of 2024, highlighting the company’s profitability amidst an evolving economic landscape.

Return on Tangible Equity (ROTE) was recorded at 7.1% in Q3 and 8.8% for the nine months, with earnings per share at €0.15 in Q3 and €0.56 year-to-date. Earning assets remained stable compared to June 2024, showing a 5.8% increase compared to September 2023, while Ayvens’ Common Equity Tier 1 (CET1) ratio stood strong at 12.6% at the end of September 2024.

Avyens’ chief executive officer Tim Albertsen highlighted Ayvens’ successful integration initiatives, including the mid-October IT platform migration in France, marking a key step in standardising operations. Rebranding efforts also made significant strides, covering 32 of Ayvens’ 42 countries, alongside the establishment of Ayvens Bank, a core component of the Group’s funding strategy.

Albertsen emphasised Ayvens’ advantage from its expanded remarketing channels, especially in profitable markets for electric vehicles, which optimise resale volumes and pricing. Additionally, Ayvens reported a strong reduction in its derivatives portfolio through integrated treasury management, anticipated to reduce future financial volatility.

In a notable achievement, Ayvens received the Ecovadis Platinum medal, positioning the company within the top 1% of businesses evaluated by Ecovadis over the past year.