Europcar made a net loss of €644.8 million for 2020, the
company has announced, with travel bans and customers deciding not to travel hitting its bottom line. The loss compares to a net profit of €29.6 million in
2019.
Caroline Parot, CEO of Europcar Mobility Group, said: “Our
2020 full year revenue was down 45 per cent vs 2019 due to travel bans and
lockdowns, combined with a ‘self-restriction’ trend among customers concerned
with their safety. All this strongly impacted the level of activity of our cars
and low-cost business units all year long, as reflected in our results.
“Yet local markets showed good resilience, supported by
domestic demand, and our vans & trucks, and urban mobility business units performed
well. Thanks to the financial restructuring combined with a sharp cost
adaptation plan, the group benefits from a much lower cost base and a strong
liquidity.”
The company made cost savings of around €1 billion in 2020
and reduced cash burn from €371 million in the first half of the year to €175 million
in the second half.
Parot added, “Regarding 2021, although vaccination campaigns
are being rolled out, our views remain cautious. Nevertheless, I am confident
that we will rebound strongly as soon as the sanitary / market conditions
improve, as demonstrated by our US business.”