Restructuring costs and compensation payments linked to an ongoing company transformation plan led to a net loss of €112 million at Europcar in 2014.
The net result would have amounted to about €25 million without such non-recurring items, the car rental company said.
Revenues for the year were up by 3.4% to almost €2 billion to give adjusted earnings [EBITDA] of €213 million, an improvement of 35% over 2013.
The ‘Fast Lane’ transformation plan, launched in 2012, enabled Europcar to lay the foundations for “sustained, profitable growth,” according to the company.
“The strategic initiatives undertaken were designed to both improve fixed and variable cost structures and reinvigorate sales efforts.
“They contributed in large measure to results beyond initial goals in terms of operating profitability and cash generation,” the firm said.
The plan is continuing with measures underway aimed at bolstering both revenues and operating margins.
New initiatives will progressively enlarge the group’s portfolio of products, services and digital offerings.
Revenue growth was helped by the development of digital distribution channels, especially on mobile platforms, an e-commerce department re-organisation and agreements with global sales agents to stimulate demand from countries such as China, India, Russia and Brazil.
Chief executive, Philippe Germond, said: “The year 2014 represents a major step forward for Europcar, which now returns to growth, with constant improvements in operating profit margin over the past three years.
“The group is halfway along its transformation plan in a growing European rental market. In this favourable environment, the group can capitalise upon its strengths to reinforce its growth and seize opportunities linked to the market’s evolution.
“We must follow through on efforts underway to address even better customer expectations and, in so doing, become our customers’ preferred mobility partner.”
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