Sixt Posts Record Revenue in First Quarter

Sixt successfully kicks of 2023 with record revenue in the first quarter, up 19.7% from the first quarter of 2022.

The company reported consolidated revenue of EUR 69.1 million ($758.8 million) for the first quarter of 2023, with North America and Germany the biggest growth drivers.

The mobility services provider benefited from demand returning to pre-COVID levels and from a consistently positive market environment with a price level for rental cars still significantly higher than in 2019.

“Sixt has gotten off to a successful start to the new year and is well on track,” said Sixt CFO Prof. Dr. Kai Andrejewski. “We are also very satisfied with the course of the second quarter so far. In view of the continuing good demand and the positive booking situation with airlines and hotels, we are also expecting a positive development for the summer season.”

Consolidated earnings before taxes (EBT) hit EUR 33.3 million ($36.3 million) in the first quarter, which was within the forecasted EUR 20 to 40 million. Continued high growth investments and a higher cost base compared to the first quarter of 2022 were cited as the reason.

With improving supply chains and excellent OEM relationships, Sixt increased its average global fleet (excluding franchises) to 149,000 vehicles, up 19% compared to Q1 of 2022. Overall, its global fleet is 15% larger and more dominated by vehicles from BMW, Audi and Mercedes Benz than in 2019.

In European counties, electric vehicles comprised 22% of the Sixt fleet in the first quarter. This is 9 percentage points higher than the first quarter of 2022. The company also placed an order to install over 1,000 additional charging points in the DACH region by year’s end. Sixt also has launched a large, multinational campaign based on the slogan, “Rent electromobility” to increase enthusiasm for EV rentals.

The company is experiencing inflation-related cost increases from the current economic climate and accelerated growth. To navigate the effects of these things, Andrejewski says the company will do the things it has always done “to keep our costs in check.” This includes measures to increase efficiency, a continued growth strategy, and investments in technology and e-mobility.

Regionally, the company reported a:

• 21.6% increase in revenue in North America to EUR 226.4 million ($247.1 million). The company also opened new branches in Toronto and Pittsburgh.
• 21.7% increase in revenue in Germany to reach EUR 218.0 million ($238 million).
• 16.% increase in revenue in European markets outside Germany to reach EUR 248.3 million ($271 million.)

The outlook for the company is good overall, but inflation and the accompanying risks to costs and the economy remain a concern. Sixt will continue to follow these things carefully, reported an earnings press release.