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GRENKE AG: GRENKE raises net profit to EUR 20.5 million in the first quarter of 2022

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DGAP-News: GRENKE AG / Key word(s): Quarterly / Interim Statement
GRENKE AG: GRENKE raises net profit to EUR 20.5 million in the first quarter of 2022
12.05.2022 / 07:02
The issuer is solely responsible for the content of this announcement.


GRENKE raises net profit to EUR 20.5 million in the first quarter of 2022

- GRENKE’s net profit in the first quarter of 2022 increases by 46.8% year-on-year to EUR 20.5 million (Q1 2021: EUR 14.0 million)

- Expenses for settlement of claims and risk provision improve to EUR 31.6 million (Q1 2021: EUR 44.6 million)

- Loss rate of 1.4% is at the lower end of the guidance range (1.4 – 1.7%)

Baden-Baden, May 12, 2022: GRENKE AG, a global financing partner for small and medium-sized enterprises, generated net profit of EUR 20.5 million in the first quarter of 2022 (Q1 2021: EUR 14.0 million), corresponding to an increase of 46.8% compared to the first quarter of 2021.

"With these results, we are fully back on our growth trajectory and on track to achieve our full-year guidance for 2022, with a net profit forecast of EUR 75 to 85 million," said Michael Bücker, Chair of the Board of Directors of GRENKE AG, in his comments on the business performance in the first quarter of 2022. Chief Financial Officer, Dr Sebastian Hirsch, added: "All indicators show that we have put the low point behind us and can expand our new business as planned."

The stable payment behaviour of customers had a positive effect in the first quarter of 2022, which enabled us to reduce our expenses for settlement of claims and risk provision by 29.2%, from EUR 44.6 million in the same prior-year quarter to EUR 31.6 million in the reporting quarter. The resulting loss rate in the first quarter of 2022 was 1.4% (Q1 2021: 2.0%), and at the lower end of our guidance range of 1.4% to 1.7%.

GRENKE Group's total assets amounted to EUR 6.5 billion as of the March 31, 2022 reporting date (December 31, 2021: EUR 6.7 billion), mainly as a result of a targeted reduction in liquidity. The largest balance sheet item – non-current and current lease receivables – was unchanged as of the reporting date, amounting to EUR 5.1 billion (December 31, 2021: EUR 5.1 billion). Liquidity in the form of cash and cash equivalents amounted to EUR 0.7 billion as of March 31, 2022 (December 31, 2021: EUR 0.9 billion; March 31, 2021: EUR 1.1 billion). The equity ratio was 19.7% and continued to exceed our self-set target of a minimum of 16%.

Outlook

For the 2022 financial year, the Board of Directors continues to expect new leasing business of between EUR 2.0 billion and EUR 2.2 billion, compared to EUR 1.7 billion in the previous year. In the medium term, the Board of Directors expects new leasing business to double by 2024, compared to new leasing business of EUR 1.7 billion in 2021. The lower level of new business over the past two years is expected to reduce operating income for full-year 2022. Based on the high profitability of the existing portfolio of contracts, the Board of Directors anticipates net profit in the range of EUR 75 million to EUR 85 million. In the financial year 2024, the Board of Directors expects net profit to double compared to the 2021 level of EUR 72.2 million (excluding the income from the sale of the viafintech investment).

The Company will provide more information on its strategy at tomorrow's "Capital Markets Update", which will be held virtually, in English, starting at 10:30 a.m. (CEST).

The following link will direct you to the invitation: https://www.grenke.com/investor-relations/capital-markets-update/.

The quarterly statement for the first quarter of 2022 is available online at www.grenke.com/investor-relations/reports-and-presentations.

 

Overview of key figures (in EUR millions)

 

Q1 2022

Q1 2021

∆ in %

New business

690.1

536.0

28.8

New business Leasing

499.2

365.8

36.5

New business Factoring

175.1

155.4

12.6

New business
lending business

15.8

14.7

7.3

CM2 margin of new leasing business in %

16.7

19.5

-2.8 pp

Net profit

20.5

14.0

46.8

Cost-income ratio in %

55.1

51.2

3.8 pp

Equity ratio in %

19.7

16.5

3.2 pp

Consolidated Group's average number of employees (full-time equivalents)*

1,816

1,802

0.8

*The calculation for this indicator has changed. The figure for Q1 2021 was retroactively adjusted.

 


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


For further 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.de

Press contact
Stefan Wichmann
Neuer Markt 2
76532 Baden-Baden
Mobile: +49 (0) 171 20 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).


12.05.2022 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:

1350275


 

End of News

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