Ayvens (AYV) Q3 2024 TU earnings summary

Executive summary

• Delivered robust business and financial performance in Q3 2024, maintaining steady progress on integration and cost control initiatives despite a softening economic environment and non-recurring items.

• Achieved €80 million in synergies year-to-date, with €32 million realized in Q3, on track for €120 million full-year target.

• Integration milestones include IT migration in five countries, including France, and rebranding in 32 out of 42 countries.

• Awarded EcoVadis Platinum Medal, placing in the top 1% for sustainability.

• Treasury sensitivity to interest rate volatility was significantly reduced.

Financial highlights

• Net income group share was €147 million in Q3 2024, impacted by negative non-recurring items; excluding these, net income would be around €190 million.

• Gross operating income at €724 million, down from €785 million in Q2 and 11.2% year-over-year, mainly due to higher non-recurring items.

• Leasing & Services margins at €647 million in Q3 2024, down 6.8% vs. Q2; used car sales result per unit at €1,420, down €60 from Q2.

• Earning assets increased 5.8% year-over-year to €53.1 billion as of 30 September 2024.

• Cost-to-income ratio improved to 63.4% in Q3 and 64.3% for nine months.

Outlook and guidance

• Confident in maintaining margin guidance at the low end of 530 basis points.

• No change to full-year margin outlook despite falling interest rates, as benefits are offset by selective growth and customer pass-through.

• Integration synergies on track to reach 2024 objectives, with ongoing reduction in derivatives portfolio expected to lower future income statement volatility.

• Expect continued gradual normalization in used car markets and stable car sales volumes in Q4.

• Commercial selectivity in fleet management to restore margins.