DGAP-Adhoc: GRENKE AG adjusts forecast for 2019 Consolidated Group net profit and reaffirms new business forecast

2019. július 29., hétfő, 22:06





DGAP-Ad-hoc: GRENKE AG / Key word(s): Change in Forecast


GRENKE AG adjusts forecast for 2019 Consolidated Group net profit and reaffirms new business forecast


29-Jul-2019 / 22:06 CET/CEST


Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.


The issuer is solely responsible for the content of this announcement.




GRENKE AG adjusts forecast for 2019 Consolidated Group net profit and reaffirms new business forecast

Adjustment in forecast for Consolidated Group net profit: following net profit of EUR 131 million in the previous year, net profit in the current year forecasted to rise to EUR 138 to 148 million (previous forecast: EUR 147 to 156 million)

- Target for new business growth at GRENKE Group Leasing narrowed to 16 to 19 percent (previous forecast: 14 to 19 percent)



Baden-Baden, July 29, 2019: The profitable new business generated in the past quarters continued to be a key driver of the Consolidated Group"s profitability in the reporting period. The changing overall economic environment and the associated fluctuations in the payment behaviour of customers will result in a higher loss rate. Based on the currently available projections, the Company expects the expenses for settlement of claims and risk provision to increase. Furthermore, GRENKE emphasises that a development such as that seen in the first half-year represents a certain degree of normalisation, as the losses in recent years, which were accompanied by a sharp rise in new business volume, were at a very low level. As a result, the Board of Directors is adjusting the full-year forecast for Consolidated Group net profit to EUR 138 to 148 million (previous forecast: EUR 147 to 156 million), which represents an increase of 5 to 13 percent compared to the previous year.



Given the robust business model and the continued good growth outlook, the Company is narrowing its forecast for new business growth in 2019 at GRENKE Group Leasing to 16 to 19 percent (previous forecast: 14 to 19 percent).



The GRENKE Consolidated Group"s financial report for the second quarter and first half-year of 2019 will be published on July 30, 2019.



Analysts and investors are kindly asked to direct any questions to



Renate Hauss

Director Investor Relations

Phone: +49 7221 5007-182

Email: rhauss@grenke.de


 






Information and Explanation of the Issuer to this News:

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 Company operates in 32 countries and employs more than 1,600 staff worldwide. GRENKE shares are listed in the MDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30).



Further information about GRENKE and its products is available at www.grenke.com.








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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: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 848427





 
End of Announcement DGAP News Service




848427  29-Jul-2019 CET/CEST







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