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GRENKE AG: Continuously good business development in the third quarter of 2018

DGAP-News: GRENKE AG / Key word(s): 9-month figures/Quarterly / Interim Statement

30.10.2018 / 07:02
The issuer is solely responsible for the content of this announcement.


Continuously good business development in the third quarter of 2018

- Nine-month net profit increases by 24% to EUR 97.9 million (9M-2017: EUR 79.3 million)

- Full-year 2018 Consolidated Group net profit target narrowed to an increase of EUR 126 to 132 million compared to the previous target of EUR 123 to 131 million

- Strong equity base: equity ratio at 19.2% after the first nine months of 2018

Baden-Baden, October 30, 2018. The growth momentum of the GRENKE Consolidated Group continued in the third quarter of the current fiscal year. "With an increase in net profit of 24 percent from EUR 79.3 million to EUR 97.9 million in the first nine months of 2018, we are clearly on course. As a result, we narrow our full-year 2018 forecast and now expect Consolidated Group net profit to be in the range of EUR 126 million to EUR 132 million," said Antje Leminsky, Chair of the Board of Directors of GRENKE AG. As already reported on October 2, 2018, new business at the GRENKE Group grew by a total of 22% in the first nine months of 2018 compared to the same period of the previous year. With an increase of 23%, new business volume at GRENKE Group Leasing was at the upper end of the published full-year forecast.

In the reporting quarter and the nine-month period, the profitable new business in the recent past was the main driver of net interest income and, thus, of the profitability of the Consolidated Group. Overall, interest and similar income from financing business increased by 14% in the first nine months versus a rise in expenses from interest on refinancing of only 8%. As a result, net interest income increased by 15% from EUR 182.2 million in the first nine months of the previous year to EUR 209.0 million. Net interest income after the settlement of claims and risk provision - which as per the beginning of 2018 under IFRS 9 includes not only losses that have already occurred but also expected losses - increased 13% to EUR 142.2 million after EUR 126.2 million in the same period of the previous year. The Consolidated Group's loss rate, based on the overall risk provisioning in accordance with IFRS 9, amounted to 1.3% after 1.4% in the prior year period. The results from service business and new business in the first nine months increased by 21% and 24%, respectively. Overall, the Consolidated Group's income from operating business increased by 19% from EUR 220.0 million in the first nine months of the previous year to EUR 262.1 million.

Including the most recent cell divisions and acquisitions, the average number of employees at the GRENKE Consolidated Group increased by 19% to 1,429 employees compared to the same period in the prior year. Staff costs rose to the same extent and were 20% higher than in the prior-year period. The Consolidated Group's second major expense item, selling and administrative expenses, increased by 22% as a result of the Consolidated Group's growth and intensified sales and marketing activities.

The operating result exceeded the previous year's figure of EUR 104.9 million by 12% and reached EUR 117.1 million. As mentioned above, net profit increased by 24% to EUR 97.9 million in the nine-month period compared to EUR 79.3 million in the first nine months of the previous year. This resulted in earnings per share of EUR 2.06 compared to EUR 1.74 in the nine-month period of the prior year.
The Consolidated Group's balance sheet structure was very solid as per the September 30, 2018 reporting date. The equity ratio came to 19.2% as per September 30, 2018, which was above our long-term benchmark of 16%. "With our solid equity base, we are keeping a keen eye on one of our most important strategic goals - high financial strength - which remains the key to the GRENKE Group's further expansion, the continuation of our successful internationalisation strategy, the targeted expansion of our market share and the systematic development of our range of products and services", explained Sebastian Hirsch, Member of the Board of Directors of GRENKE AG.

The quarterly statement for the third quarter and first nine-months of 2018 is available at www.grenke.de/en/investor-relations/financial-reports.

Overview of key figures (in EUR millions)

  9M-2018 9M-2017 Change in %
New business GRENKE Group Leasing 1,718.1 1,401.9 22.6
New business GRENKE Group Factoring 366.2 309.3 18.4
New business SME lending business
(incl. business start-up financing)
29.3 20.0 46.2
CM2 margin on new business Leasing in % 17.6 18.0 -2.2
Net profit GRENKE Consolidated Group* 97.9 79.3 23.6
Cost / income ratio in %* 56.3 54.6 3.1
Equity ratio in %* 19.2 16.6 15.7
Consolidated Group's average number of employees 1,429 1,202 18.9
 

* Previous year's figures adjusted in accordance with IFRS 9.
Please note: Due to rounding, differences to the actual number in euro may occur in individual figures.

For more information, please contact:
GRENKE AG
Investor Relations
Renate Hauss
Neuer Markt 2
76532 Baden-Baden
Phone: +49 7221 5007-204
Email: investor@grenke.de
Internet: http://www.grenke.de

 

About GRENKE

The GRENKE Group (GRENKE) is a global financing partner for small and medium-sized companies. As a one-stop shop for customers, GRENKE's products range from flexible small-ticket leasing and demand-driven bank products to convenient factoring. Fast and easy processing and personal contact with customers and partners are at the centre of GRENKE's activities.

Founded in 1978 in Baden-Baden, the Group operates in 31 countries and employs more than 1,500 staff worldwide. GRENKE shares are listed in the SDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30).

Further information about GRENKE and its products is available at http://www.grenke.de.



30.10.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: GRENKE AG
Neuer Markt 2
76532 Baden-Baden
Germany
Phone: +49 (0)7221 50 07-204
Fax: +49 (0)7221 50 07-4218
E-mail: investor@grenke.de
Internet: www.grenke.de
ISIN: DE000A161N30
WKN: A161N3
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange


 
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