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GRENKE AG (FRA:DE000A16) EQS-News: GRENKE STARTS YEAR WITH STRONG Q1 2024

Transparency directive : regulatory news

15/05/2024 07:05

EQS-News: GRENKE AG / Key word(s): Quarter Results/Quarterly / Interim Statement
GRENKE STARTS YEAR WITH STRONG Q1 2024

15.05.2024 / 07:05 CET/CEST
The issuer is solely responsible for the content of this announcement.


GRENKE STARTS YEAR WITH STRONG Q1 2024

  • Group earnings increased 25% to EUR 19.8 million (Q1 2023: EUR 15.9 million)
  • Equity ratio of 18.8 % above self-set target of 16% despite share buyback
  • 2024 forecast reaffirmed

Baden-Baden, May 15, 2024: GRENKE AG, a global financing partner for small and medium-sized enterprises, increased its Group earnings by 25% to EUR 19.8 million in the first quarter of 2024 (Q1 2023: EUR 15.9 million). The continued strong growth in new business in past quarters and the improvement in the margin situation in 2023 contributed to this performance. The CM2 margin expanded to 16.8% in the first quarter of 2024 compared to 16.7% in the first quarter of 2023. The cost income ratio (CIR) equalled 58.1% (Q1 2023: 57.1%), marking an improvement compared to the 2023 full-year average (59.2%).

Dr Sebastian Hirsch, CEO of GRENKE AG: “We’ve had a strong start to the year. We were able to build on the previous year’s momentum and still have plenty of potential. These are the best prerequisites for staying on track to achieve our ambitions for the year as a whole.”

Dr Martin Paal, designated CFO of GRENKE AG: “Including the additional investments we have made in our digitalisation, our costs are in line with our plan. At the same time, the growth in our interest income in absolute terms is outpacing the increase in our interest expenses, which should provide a further boost to our profitability in the quarters ahead.”

Higher interest income

Interest income in the first quarter of 2024 increased year-on-year by EUR 23.6 million to a total of EUR 132.1 million (Q1 2023: EUR 108.5 million). At the same time, the strong growth in new business led to higher refinancing requirements while capital market interest rates remained high. Consequently, interest expenses increased by EUR 21.6 million to EUR 46.1 million (Q1 2023: EUR 24.5 million). As a result, net interest income (the balance of interest income and interest expenses) rose to EUR 86.1 million in Q1 2024 (Q1 2023: EUR 84.0 million).

Expenses for settlement of claims and risk provision in the first quarter of 2024 were almost unchanged at EUR 26.7 million (Q1 2023: EUR 26.4 million). The loss rate of 1.1% (Q1 2023: 1.2%) was below 1.5%, as forecast. The increase in interest income led to an increase of 3.1% in net interest income after settlement of claims and risk provisions to EUR 59.3 million (Q1 2023: EUR 57.6 million).

The average number of employees (measured in full-time equivalents) in the reporting quarter increased by 8.0% year-on-year to 2,156 (Q1 2023: 1,996 employees). Due to the growth-driven staff increase in 2023, staff costs rose year-on-year to EUR 46.8 million (Q1 2023: EUR 41.3 million) but fell in comparison to the prior quarter (Q4 2023: EUR 47.5 million).

Lease receivables develop in line with plan

Based on the growth in new business, lease receivables at the end of Q1 2024 were slightly higher year-on-year, rising to EUR 5.8 billion (Q1 2023: EUR 5.7 billion). New leasing business in the first quarter of 2024 increased 9.4% to EUR 669.8 million (Q1 2023: EUR 610.2 million).

Equity ratio continues to exceed self-set target

The liquidity position as of the March 31, 2024 reporting date totalled EUR 700.4 million (December 31, 2023: EUR 697.2 million). The equity ratio was 18.8% (Q1 2023: 20.8%) and continued to be above the Company’s self-set target of at least 16%, even after taking into account the ongoing share buyback programme.

Outlook 2024

GRENKE remains by its forecast for new leasing business in the 2024 financial year in the range of EUR 3.0 billion to EUR 3.2 billion and Group earnings of EUR 95 million to EUR 115 million. GRENKE is aiming for a slight year-on-year increase in the CM2 margin in 2024. In the medium term, the target is to achieve a CM2 margin of around 17%. The expectation for the profit corridor in the 2024 financial year is based on the assumption that the loss rate will remain below 1.5%. Taking into consideration the planned investments in the digitalisation programme, GRENKE is aiming for a CIR of less than 58% in 2024. Based on the anticipated development of the Group earnings, GRENKE continues to expect a balance sheet equity ratio of over 16%.

The quarterly statement for the first quarter of 2024 can be accessed on the Company’s website under the heading “Reports & Presentations”.

KEY FIGURES AT A GLANCE (IN EURm)

  Q1 2024 Q1 2023 ∆ in %
New leasing business 669.8 610.2 9.8
CM2 margin of new leasing business in % 16.8 16.7 0.1 pp
Group earnings 19.8 15.9 24.9
Earnings per share in EUR 0.22 0.19 15.8
Cost-income ratio in % 58.1 57.1 1.0 pp
Equity ratio in % 18.8 19.1 -0.3 pp
Average no. of employees in
full-time equivalents
2,156 1,996 8.0

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
+49 7221 5007-204
investor@grenke.de
Press contact
Stefan Wichmann
Neuer Markt 2
76532 Baden-Baden
+49 171 2020300
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 Group operates in more than 30 countries and employs approximately 2,100 staff (measured in terms of full-time equivalents) worldwide. GRENKE shares are listed on the Frankfurt Stock Exchange (ISIN DE000A161N30).
 


15.05.2024 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.

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com


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: 1903273

 
End of News EQS News Service

1903273  15.05.2024 CET/CEST

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