09.08.2023 GRENKE AG  DE000A161N30

EQS-News: GRENKE: Positive earnings development in the second quarter of 2023


 

EQS-News: GRENKE AG / Key word(s): Half Year Results
GRENKE: Positive earnings development in the second quarter of 2023

09.08.2023 / 18:35 CET/CEST
The issuer is solely responsible for the content of this announcement.


GRENKE: Positive earnings development in the second quarter of 2023

  • Income from operating business increases by 11.4% to EUR 109.2 million (Q2 2022: EUR 98.0 million)
  • Net profit grows 17.3% to EUR 24.5 million (Q2 2022: EUR 20.9 million)
  • Loss rate in the second quarter of 2023 is 0.9% and significantly better than target of 1.5%
  • 2023 forecast confirmed and outlook for 2024 aligned with the market environment 

Baden-Baden, August 09, 2023: GRENKE AG, a global financing partner for small and medium-sized enterprises, continues its rebound. In the second quarter of 2023, GRENKE generated income from operating business of EUR 109.2 million, for a year-on-year increase of 11.4% (Q2 2022: EUR 98.0 million). Consolidated Group net profit also grew significantly year-on-year by 17.3% to EUR 24.5 million (Q2 2022: EUR 20.9 million). Earnings per share equaled EUR 0.55 (Q2 2022: EUR 0.46).

“We are on the right track,” emphasises Dr Sebastian Hirsch, CEO of GRENKE AG. After two years, new business has rebounded from the corona-induced dip, and we are almost back to the level achieved in 2019. Hirsch: “We have interest rates and inflation under control. Even if growing recessionary concerns in the markets call for new priorities, we want to continue our double-digit growth, thereby outpacing the market and gaining market share. What is important for us now, however, is first and foremost maintaining a profitable and balanced business with solid margins. At the same time, we intend to increase our efficiency over the next twelve months through not only digitalisation but also stringent cost management.”

Over one million current lease contracts, featuring a volume of now EUR 9.2 billion (Q2 2022: EUR 8.7 billion), are the source of our future income. The continued positive development of the CM2 margin in Q2 2023 to 16.9% after 16.7% in Q1 2023 will have a particularly positive impact on Consolidated Group net profit.

Interest income continued to develop positively in the second quarter of this year, increasing year-on-year by EUR 10.2 million to EUR 113.6 million (Q2 2022: EUR 103.4 million). This increase compensated for the majority of the EUR 13.6 million increase in refinancing expenses resulting from the sharp rise in capital market interest rates. Interest expenses from refinancing and deposit business rose from EUR 15.9 million (Q2 2022) to EUR 29.5 million in Q2 2023.

Based on an unchanged cautious assessment of all available macroeconomic factors, the settlement of claims and risk provision was reduced further. This, combined with customers’ good payment behaviour resulted in a reduction in expenses for the settlement of claims and risk provision in Q2 2023 of 23.6% year-on-year (Q2 2023: EUR 21.4 million vs. Q2 2022: EUR 28.1 million). The resulting loss rate was 0.9% in the reporting period (Q2 2022: 1.3%) and therefore well within the forecast of below 1.5% for the current 2023 financial year.

Staff costs in the second quarter of 2023 increased by EUR 9.0 million to EUR 44.0 million compared to the same quarter in the prior year (Q2 2022: EUR 35.0 million). Compared to the first quarter of 2023 (Q1 2023: EUR 41.3 million), however, staff costs maintained a stable level, which includes the inflation-driven salary adjustments made in the second half of 2022. As a result, the cost-income ratio (CIR) was 59.5% in the second quarter of the current year, compared to 57.1% in the first quarter (Q2 2022: 54.0%). The increase in the CIR was compensated for by the favourable decline in the expenses for the settlement of claims and risk provision due to the good payment behaviour of customers, falling from EUR 28.1 million in Q2 2022 to EUR 21.4 million in Q2 2023.

As of the June 30, 2023 reporting date, GRENKE Group's total assets amounted to EUR 6.7 billion (December 31, 2022: EUR 6.4 billion). The largest balance sheet item, current and non-current lease receivables, increased slightly to EUR 5.4 billion as of the reporting date (December 31, 2022: EUR 5.2 billion). As of June 30, 2023, liquidity in the form of cash and cash equivalents reached approximately EUR 0.6 billion (December 31, 2022: 0.4 billion). The equity ratio stayed at a consistently high level of 19.8% (December 31, 2022: 20.8%) and was thus comfortably above the self-set target of at least 16.0%.

 Outlook

The Board of Directors confirms the outlook announced on March 16, 2023 for new leasing business in 2023 at a volume ranging from EUR 2.6 billion to EUR 2.8 billion. The Board of Directors also continues to expect Consolidated Group net income in 2023 to be in line with the forecast communicated of EUR 80 million to EUR 90 million, despite macroeconomic developments that are difficult to foresee.

Based on updated economic forecasts and a continued focus on balanced margins, the Board of Directors is targeting new leasing business of EUR 3.0 billion to EUR 3.2 billion for the year 2024, instead of the previous figure of around EUR 3.4 billion, and Consolidated Group net profit of EUR 95 million to EUR 115 million, instead of the previous figure of around EUR 120 million. GRENKE is continuing its growth strategy also with a reduced guidance range for new business. The new outlook for new business corresponds to double-digit growth of 11% to 19% as compared to the mid-point of guidance for the current financial year of around EUR 2.7 billion.

The financial report for the second quarter and first half of 2023 will be available as of August 10, 2023 the internet at www.grenke.com/investor-relations/reports-and-presentations/.

Key figures at a glance (in EUR million)

  Q2 2023 Q2 2022 ∆(%) Q1-Q2
2023
Q1-Q2
2022
∆(%)
New business 866.7 792.6 9.4   1,681.7   1,482.7 13.4
  New leasing business 650.3 587.4 10.7 1,260.5 1,086.7 16.0
  New factoring business 205.4 191.5 7.3 397.4 366.6 8.4
  New lending business 11.0 13.6 -19.5 23.8 29.4 -19.2
CM2 margin of new leasing business in % 16.9 15.9 1.0pp 16.8 16.2  0.6pp
Consolidated Group net profit 24.5 20.9 16.3 40.4 41.5 -3.0
Earnings per share in EUR 0.55 0.46 19.6 0.74 0.72 2.8
Cost-income-ratio in % 59.5 54.0    5.5pp 58.3 53.3 5.0pp
Equity ratio in % 19.8 20.2 -0.4pp      
Consolidated Group average no. of employees in full-time equivalents 2,052 1,846 11.2 2,023 1,831 10.5

Note: Rounding differences may occur between individual values and the actual figure achieved in euros.

For more information, please contact:

Investor contact
Investor Relations Team
Neuer Markt 2
76532 Baden-Baden
Phone: +49 7221 5007-204
Email:  [email protected]
Website: www.grenke.de
 
Press contact
Stefan Wichmann
Neuer Markt 2
76532 Baden-Baden
Phone: +49 (0) 171 20 300
Email: [email protected]
 

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 more than 30 countries and employs approximately 2,000 staff (measured in terms of full-time equivalents) worldwide. GRENKE shares are listed on the Frankfurt Stock Exchange (ISIN DE000A161N30).



09.08.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - 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: [email protected]
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: 1700135

 
End of News EQS News Service

1700135  09.08.2023 CET/CEST

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Die wichtigsten Finanzdaten auf einen Blick
  2017 2018 2019 2020 2021 2022 2023e
Umsatzerlöse1 2.418,55 2.936,64 3.512,49 2.675,70 2.358,74 3.083,36 3.419,82
EBITDA1,2 176,71 174,38 203,03 153,99 163,99 130,44 139,98
EBITDA-Marge3 7,31 5,94 5,78 5,76 6,95 4,23
EBIT1,4 161,35 157,16 170,00 125,12 132,51 97,98 112,91
EBIT-Marge5 6,67 5,35 4,84 4,68 5,62 3,18 3,30
Jahresüberschuss1 124,98 131,11 135,90 88,44 95,19 84,18 86,71
Netto-Marge6 5,17 4,46 3,87 3,31 4,04 2,73 2,54
Cashflow1,7 27,95 53,66 140,75 586,62 -72,04 -346,84 329,25
Ergebnis je Aktie8 2,74 2,78 2,95 1,86 1,94 1,75 1,79
Dividende8 0,70 0,80 0,80 0,26 0,51 0,45 0,58
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2023 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: BDO

INVESTOR-INFORMATIONEN
©boersengefluester.de
Grenke
WKN Kurs in € Einschätzung Börsenwert in Mio. €
A161N3 20,850 - 969,43
KGV 2025e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
8,69 21,38 0,41 9,42
KBV KCV KUV EV/EBITDA
0,85 2,94 0,28 6,93
Dividende '22 in € Dividende '23e in € Div.-Rendite '23e
in %
Hauptversammlung
0,45 0,47 2,25 30.04.2024
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
15.05.2024 08.08.2024 14.11.2024 07.03.2024
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
-4,88% -7,06% -16,77% -23,20%
    
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Finanzdienstleistungen , A161N3 , GLJ , XETR:GLJ