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GRENKE AG: GRENKE increases Consolidated Group net profit again in the second quarter of 2022

·6-min read

DGAP-News: GRENKE AG / Key word(s): Half Year Report/Half Year Report
GRENKE AG: GRENKE increases Consolidated Group net profit again in the second quarter of 2022
11.08.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

 GRENKE increases Consolidated Group net profit again in the second quarter of 2022

  • Net profit increases year-on-year by 14.6 percent to EUR 20.9 million in the second quarter of 2022

  • Number of current lease contracts reaches more than 1 million for the first time

  • Stable incoming payments continue from the leasing business

  • Loss rate falls to 1.3 percent

  • Guidance for the 2022 financial year and the 2024 outlook reaffirmed

Baden-Baden, August 11, 2022: GRENKE AG, a global financing partner for small and medium-sized enterprises, increased its net profit in the second quarter of 2022 compared to the same quarter of the previous year, despite global uncertainties. Consolidated Group net profit increased to EUR 20.9 million, corresponding to a year-on-year increase of 14.6 percent (Q2 2021: EUR 18.3 million). This follows an increase in Consolidated Group net profit in the first quarter to EUR 20.5 million (Q1 2021: EUR 14.0 million). The positive performance of leasing new business since December 2021 has contributed to the fact that net profit is now approaching the level seen prior to the corona pandemic. In the first half of 2022, GRENKE generated leasing new business totalling EUR 1.1 billion (Q1–Q2 2021: EUR  0.8 billion) with a net profit of EUR 41.5 million (Q1–Q2 2021: EUR 32.3 million). The Board of Directors confirms the guidance for the 2022 financial year and the outlook for 2024.

"It appears our plan is working. We are ideally positioned thanks to our financial resilience. The growth in our new business gives us additional momentum. Above all, the quality of our lease receivables provides a solid backbone to support our profitability," said GRENKE CEO Michael Bücker in his comments on the current business development. GRENKE CFO Dr Sebastian Hirsch added: "We accelerated at the right time and were able to increase our profit again. We also reached a new dimension in terms of lease contracts with over one million active contracts."

Expenses for settlement of claims and risk provision fell by 29.0 percent to EUR 28.1 million (Q2 2021: EUR 39.5 million). This decline is attributed to customers' continued good payment behaviour, even in the current environment. The resulting loss rate in the reporting period was 1.3 percent (Q2 2021: 1.8 percent), which was just under the range of 1.4 percent to 1.7 percent projected for the full year.

As of the June 30, 2022 reporting date, GRENKE Group's total assets amounted to EUR 6.4 billion (December 31, 2021: EUR 6.7 billion). Current and non-current lease receivables, which represent the largest item on the balance sheet, remained constant at EUR 5.1 billion (December 31, 2021: EUR 5.1 billion). As of June 30, 2022, liquidity in the form of cash and cash equivalents returned as planned to the customary level of approximately EUR 0.5 billion (December 31, 2021: EUR 0.9 billion). The equity ratio rose to 20.2 percent as of June 30, 2022 (December 31, 2021: 19.1 percent) and was comfortably above the Company’s self-set target of a minimum of 16 percent.

 Outlook

The GRENKE AG Board of Directors expects the strong growth in leasing new business to continue and stable payment behaviour on the part of customers for the remainder of the year. The Board of Directors confirms the guidance from March 17, 2022 and continues to expect leasing new business in the range of EUR 2.0 billion and EUR 2.2 billion in the 2022 financial year. Due to the solid profitability of the existing contract portfolio, the Board of Directors continues to expect net profit for the year in the range of EUR 75 million to EUR 85 million.

The Board of Directors continues to expect leasing new business to reach EUR 3.4 billion and net profit to equal EUR 140 million by 2024. This would amount to double the level of leasing new business and net profit generated in the 2021 financial year. Leasing new business in 2021 was EUR 1.7 billion and net profit (excluding the gain on the sale of the viafintech investment) was EUR 72.2 million.

The report for the second quarter and first half of 2022 is available at www.grenke.com/investor-relations/reports-and-presentations.

 

Overview of key figures (in EUR millions)

 

 

Q2 2022

Q2 2021

∆(%)

Q1–Q2
2022

Q1–Q2
2021

∆(%)

New business

792.6

580.0

36.7

1,482.7

1,115.9

32.9

New business Leasing

587.4

398.6

47.4

1,086.7

764.5

42.2

New business Factoring

191.5

175.2

9.3

366.6

330.6

10.9

New lending business

13.6

6.1

123.0

29.4

20.9

41.2

CM2 margin of leasing new business in %

15.9

18.1

-2.2 pp

16.2

18.8

-2.6 pp

Net profit GRENKE Group

20.9

18.3

14.6

41.5

32.3

28.6

Cost-income ratio in %*

54.0

47.0

7.0 pp

53.3

48.3

5.0 pp

Equity ratio in %

20.2

17.8

2.4 pp

 

 

 

Average number of Consolidated Group
employees (full-time equivalents)*

1,846

1,788

3.2

1,831

1,795

2.0

*The calculation for this indicator has changed. The figures for 2021 were retroactively adjusted.

Please note: Rounding may result in differences in individual values compared to the values actually achieved in

EUR.

 

For more information, please contact:

GRENKE AG
Team Investor Relations
Neuer Markt 2
76532 Baden-Baden
Phone: +49 7221 5007-204
Email: investor@grenke.de
Website: www.grenke.com

Press contact
Stefan Wichmann
Neuer Markt 2
76532 Baden-Baden
Phone: +49 (0) 171 20 300
Email: presse@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 Consolidated Group operates in 33 countries and employs more than 1,800 staff (full-time equivalents) worldwide. GRENKE shares are listed on the Frankfurt Stock Exchange (ISIN DE000A161N30).

 


11.08.2022 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.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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

EQS News ID:

1418099


 

End of News

DGAP News Service

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