Despite the weakening economy, there are some German companies reporting good preliminary figures for the 2023 fiscal year. Among these bright spots in the German mid-sized sector is the car rental company Sixt, which was able to report record sales for the past year.

In addition, Sixt achieved the second-best result in its 112-year history during the 2023 fiscal year. But before I go into detail about the preliminary figures of the Bavarian car rental company, let me introduce the company briefly.

Sixt SE in focus Founded in 1912 and headquartered in Pullach near Munich, Sixt SE is an international leader in mobility services. The Bavarian company, which now employs around 7,500 people, is active in the areas of car and commercial vehicle rental, car sharing, chauffeur services, and car subscriptions.

In total (including franchise), Sixt has a fleet of more than 270,000 vehicles. The vehicles or services can be booked through the Sixt app. The mobility service provider is represented in more than 100 countries worldwide. Sixt SE has been listed on the Frankfurt Stock Exchange since 1986.

Preliminary financial figures for 2023 in detail According to preliminary calculations, the Bavarian mobility service provider was able to achieve a record turnover for the second year in a row in 2023. Specifically, sales in the past year amounted to 3.62 billion euros, an increase of 18.1% compared to the previous year.

Looking at regions, sales in Germany increased by an impressive 23.6%. This was followed by North America with sales of over 1 billion euros for the first time (+18.5%) and the European foreign markets with a sales increase of 14.3%.

The earnings before interest, taxes, and depreciation (EBITDA) also reached a historic high of 1.33 billion euros. The pre-tax income (EBT) for 2023 was 464.3 million euros and is the second-best result in the company’s history, after the previous year’s value.

With a pre-tax profit margin (EBT margin) of 12.8%, Sixt significantly exceeded its minimum target return of 10%. Due to the good business development in 2023, the company plans to propose a dividend of €3.90 per common share and €3.92 per preferred share at this year’s Annual General Meeting.

Growth to continue in 2024 The Sixt board also expects a significant increase in sales for the current fiscal year, which would reach a new record level for the third consecutive year. According to the company, the main drivers are the high expected demand and continued international expansion.

For the pre-tax income (EBT) for the entire 2024 fiscal year, the company expects a value between 400 and 520 million euros. Both Sixt’s common and preferred shares have not performed well recently. However, the favorable valuation and comparatively high dividend yield could invite medium-term oriented investors to enter the market.