DGAP-News: GRENKE AG: GRENKE"s business continues to perform well in the third quarter of 2019

2019. október 30., szerda, 07:30







DGAP-News: GRENKE AG


/ Key word(s): Quarter Results






GRENKE AG: GRENKE"s business continues to perform well in the third quarter of 2019







30.10.2019 / 07:30




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



GRENKE"s business continues to perform well in the third quarter of 2019


- Nine-month net profit increases by 5.2% to EUR 103.0 million (9M-2018: EUR 98.0 million)

- Loss rate is stable compared to the second quarter of 2019 and in line with expectations

- Forecast for net profit of EUR 138 to 148 million in the 2019 fiscal year confirmed

 



Baden-Baden, October 30, 2019: In the third quarter of 2019, the GRENKE Group continued to grow and, at the same time, increase profitability. "With net profit up 5.2% from EUR 98.0 million to EUR 103.0 million in the first nine months of the current fiscal year, we are in line with our expectations announced at the half-year. As a result, we are confirming our forecast for Consolidated Group net profit for the full year in the range of EUR 138 and 148 million," commented Antje Leminsky, Chair of the Board of Directors of GRENKE AG. A decisive contribution to the favourable business performance was made by the consistently strong development of new business across all business units. In the first nine months of 2019, new business at GRENKE Group increased by 23.3% year-on-year. Growth in the Leasing business amounted to 21.7%, while the sum of purchased receivables in the Factoring business rose 29.9%.



The sum of interest and similar income from financing business in the first nine months rose by 15.2%. Expenses from interest on refinancing increased by 17.8%. This contributed to a year-on-year increase in net interest income of 14.8% from EUR 209.0 million in the prior-year"s nine-month period to EUR 239.9 million in 2019. At 1.6%, the Consolidated Group"s loss rate held steady compared to the second quarter of 2019 (9M-2018: 1.3%).The settlement of claims and risk provision amounted to EUR 92.2 million after EUR 66.6 million in the first nine months of 2018. Net interest income after settlement of claims and risk provision increased by 3.7% to EUR 147.7 million compared to a level of EUR 142.4 million in the same period in the previous year. Including the profit from service business and new business, the Consolidated Group"s income from operating business increased by 10.4%, from EUR 262.3 million in the previous year to EUR 289.5 million.



The average number of employees at the GRENKE Consolidated Group increased by 15.4% to 1,649 employees compared to the same period of the previous year. As a result, staff costs increased by 12.8% compared to the nine-month period of the prior year. Selling and administrative expenses - another significant cost item for the Consolidated Group - declined by 2.1%.



The operating result exceeded the previous year"s level of EUR 117.3 million by 7.2% and amounted to EUR 125.8 million. Net profit in the nine-month period increased by 5.2% to EUR 103.0 million, compared to EUR 98.0 million in the same period of 2018. Earnings per share therefore equalled EUR 2.08, compared to EUR 2.07 in the same period of the prior year. With an equity ratio as per September 30, 2019 of 16.9%, this ratio continues to stand above the long-term benchmark of 16%.



"Our loss rate stabilised in the third quarter, as expected. At the same time, we were able to improve our contribution margin 2, alongside excellent new business growth. We intend to continue on this path in order to expand our earnings growth and sustainably increase the Company"s enterprise value," explains Sebastian Hirsch, member of the Board of Directors of GRENKE AG.

 



The quarterly statement for the third quarter is available on the Internet at www.grenke.com/investor-relations/reports-downloads.

Overview of key figures (in EUR millions)







































  9M-2019 9M-2018 Change in %
New business GRENKE Group Leasing 2,091.7 1,718.1 21.7
New business GRENKE Group Factoring 475.7 366.2 29.9
New business SME lending business

(incl. business start-up financing)
37.6 29.3 28.5
CM2 margin on new business Leasing in % 16.7 17.6 -5.1
Net profit GRENKE Consolidated Group 103.0 98.0 5.2
Cost / income ratio in % 58.0 56.3 3.0
Equity ratio in % 16.9 19.1 -11.5
Consolidated Group"s average number of

employees
1,649 1,429 15.4

 

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

Investor Relations Team



Neuer Markt 2

76532 Baden-Baden

Phone: +49 7221 5007-204

Email: investor@grenke.de

Internet: www.grenke.com



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.
















30.10.2019 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: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 900189





 
End of News DGAP News Service





900189  30.10.2019 



fncls.ssp?fn=show_t_gif&application_id=900189&application_name=news&site_id=geo_holding_tug
Tilos a hír bármilyen adatbázisba történő mentése vagy annak továbbítása harmadik fél számára;kereskedelmi viszonylatban vagy kereskedelmi céllal csak a Deutsche Gesellschaft für Ad-hoc-Publizität mbh írásos engedélyével történhet.

Közzétételek - archívum