Reduced leftover values split Sixt's bottom line in half

Sixt, the global car rental company, has released its Q2 results for 2024, revealing a mixed picture of growth and challenges.

The company's growth in North America was the largest contributor to its overall growth, with a 25% increase in turnover. This impressive expansion was facilitated by the opening of 15 new locations in North America since the start of the year, bringing Sixt's total presence to 49 airports across the continent. Co-CEOs Alexander Sixt and Konstantin Sixt, who have been instrumental in Sixt's successful expansion into the American market, played a significant role in this achievement.

However, the company faced a setback in its remarketing operation due to a decline in residual values. This decline affected Sixt's net profit, with the figure for Q2 2024 halving to €48.3 million. The decline in residual values also presented an opportunity for Sixt to procure new vehicles at better conditions.

Rental customers of Sixt continue to prefer cars with internal combustion engines, and as a result, Sixt is following the trend of other rental companies by deprioritizing electric vehicles (EVs). The number of EVs in Sixt's fleet of 170,000 units is expected to decrease.

Sixt's income from selling vehicles decreased by approximately €40 million in the second quarter of 2024. However, the specific details of Sixt's Q2 results can be found in the provided link.

Despite these challenges, Sixt's revenue for the second quarter of 2024 was €1.08 billion, marking an 8.9% year-on-year growth. The company's growth in the North American market is expected to continue.

In conclusion, while Sixt faced challenges in its Q2 results, its growth in North America and overall revenue growth indicate a resilient company navigating through a complex market. For more detailed information, please refer to the provided link.