Sixt:Quarterly Results/2022 Q4

FY 2022

Results

Sixt's revenue in 2022 grew by 34.3% year-over-year to EUR 3.07 billion in-line with the EUR 3.04 billion(+33.3%) analysts estimate. On the other hand, its EBT grew by 24.4% year-over-year to EUR 550.2 million. As a result, the company announced that it will pay a dividend in the amount of EUR 4.11 per ordinary share, which exceeds EUR 3.37 per ordinary share estimate.The company also proposed a dividend in the amount of EUR 4.13 per preference share. Besides, shareholders will get a special dividend of EUR 2.00 per share.

Sixt pointed out that the 17.6% EBT margin was above the 10% return on investment target.

The company continues to grow geographically. In 2022, the share of foreign revenue grew to 71.4% from 67.2% in 2021.

The company said it "was successful in placement of Borrower´s note loans with a total volume of EUR 450 million" and terms of three, five and seven years. Sixt added that the issue received a huge demand as it had an order book of more than EUR 750 million and "was priced at the lower end of the target range that had been announced."

Outlook for Q1 2023 and FY 2023

Q1 2023

For Q1 2023, the company is guiding for revenue to grow by 10 to 25% year-on-year. However, it is forecasting EBT this quarter to be between 20 million euros and 40 million euros versus 93.5 million euros in Q1 2022. This is because "at the beginning of 2022, staffing levels and the fleet size were still at an unusually low level; hence they had a positive impact on costs." Similarly, " marketing expenses in the first quarter of 2023 will be high compared to past years as a result of the major US-campaign currently underway."

FY 2023

For FY2023, management forecasts revenue and EBT to exceed analysts expectations of EUR 3.0 billion and EUR 427 million, respectively "as demand approaches pre-pandemic level again, as it did in 2022 and the first weeks of 2023, but at higher prices." Notably, EBT in 2023 is expected to come in the range of EUR 430 million to EUR 550 million.

The company noted the industry trends have improved considerably. " For example, the global airline umbrella organisation IATA projects that passenger traffic on domestic flights will reach 95% of 2019 pre-Covid levels already in 2023 and 80% on international routes, not yet taking into consideration the re-opening of China. The data analyst firm Statista forecasts a 20% increase in the global travel and tourism market volume in 2023." Sixt said in the press release.

Key numbers	2022	y/y growth
Revenue	EUR 3.07 billion	34.3%
EBT	EUR 550.2 million.	24.4%
EBT margin	17.9%
share of Foreign revenue	71.4%
Number of Vehicles	138,400	10%
Share of premium vehicles	57%

Expectations

Management Guidance

Key numbers	2022 lower-end	2022 mid-point	2022 upper-end	mid-point Y/Y Growth
Revenue	EUR 2.8 billion	EUR 2.95 billion	EUR 3.1 billion	29.4%
EBT	EUR 500 million	EUR 525	EUR 550 million	18.7%

Analysts estimates:

Key numbers	2022 analysts estimates	2021 actual	Y/Y growth
Revenue	EUR 3.04 billion	EUR 2.28 billion	33.33%
EBT		EUR 442.28
Dividends per ordinary share	EUR 3.37	EUR 3.70	-8.9%
Share of Foreign revenue		67.2%
Number of vehicles		125,300
European share of electric vehicles		10%
Share of premium brands		57%

Competitor expectations and results

Hertz:Quarterly Results/2022 Q4