Germany-based car rental company Sixt reported strong first-quarter demand and consolidated revenue of €780.2 million, a 12.3 percent increase year over year and the 12th consecutive quarter of double-digit year-over-year growth, the company announced Friday.
The North America segment grew 21.6 percent year over year to €275.2 million, followed by Germany at €243 million, up 11.5 percent for the quarter. European markets outside of Germany reported revenue of €260.7 million, an increase of 5 percent versus Q1 2023.
Despite the increased revenue, the company reported a loss of €27.5 million before taxes compared with earnings of €33.3 million a year prior. The first quarter of the year typically is a weak one for earnings, Sixt said in a statement, and cited “headwinds due to macroeconomic conditions such as continuing inflationary pressure, lack of a reversal in interest rates and declining residual vehicle values, especially in the electric vehicle sector” as contributors to the loss, Sixt CFO Kai Andrejewski said in a statement.
Sixt’s average number of vehicles increased 8.9 percent year over year for the quarter to 162,300 compared with about 149,000 a year prior.
The company’s outlook includes continued strong demand, and a “significant increase in consolidated revenue” for the full year. Still, Sixt lowered its projected 2024 earnings before taxes to €350 million to €450 million, down from the €400 million to €520 million projected in February. For the second quarter, the company expects to return to profitability with earnings between €60 million and €90 million.
