Sixt grows ‘significantly’ despite economic headwinds

Germany-based car rental firm Sixt achieved record €1.24 billion revenue in the third quarter, despite a “challenging macroeconomic environment” in Europe.

Sixt said its revenue was up by 10 per cent compared with the same quarter of 2023, thanks to year-on-year growth of 20 per cent in North America, alongside a 5 per cent increase in sales in its home market of Germany and across the rest of Europe.

The company made a pre-tax profit of €246.4 million during the quarter, which was on a par with its performance in Q3 of 2023.

Alexander Sixt, co-CEO of Sixt, said: “In an extremely challenging market with economic headwinds, the Sixt team has once again demonstrated its ability to adapt.

“Even in this environment, we have been able to grow significantly: our revenue in Q3 was 10 per cent above the prior-year quarter, and around 60 per cent higher than pre-Covid.

“The utilisation of our fleet is high, the measures taken are effective, and the investments made are paying off. We fought our way back step-by-step and were able to achieve Q3 earnings at the level of the previous year.”

Sixt recorded a loss in the first quarter of 2024, as it suffered from the impact of higher vehicle costs and a decline in the residual value of used cars, before returning to profit in the second quarter.

The company said in its earnings statement that it had benefited from the ability to buy vehicles “under more favourable conditions after years of supply shortages on the part of the manufacturers”.

“We will continue to pursue our strategy in 2025 and will maintain our conservative fleet planning at a tight level with purchasing conditions that are significantly more attractive than in the years of vehicle shortages,” added Alexander Sixt.

Despite its strong Q3 performance, Sixt added that “economic development and the geopolitical situation remain subject to a high degree of uncertainty”.

“While economic growth in the US has so far proven to be robust, the German federal government now expects the country’s GDP to decline again in 2024. In the Eurozone, too, the economy remains under pressure in many countries,” said the company in a statement.

Sixt’s management is expecting to achieve pre-tax profit of €340 million for the whole of 2024, which is at the lower end of its previous guidance range.