04.04.2017
GRENKE AG DE000A161N30
DGAP-News: GRENKE AG: GRENKE starts the 2017 fiscal year with robust new business
DGAP-News: GRENKE AG / Key word(s): Miscellaneous/Miscellaneous
GRENKE AG: GRENKE starts the 2017 fiscal year with robust new business
04.04.2017 / 07:12
The issuer is solely responsible for the content of this announcement.
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GRENKE starts the 2017 fiscal year with robust new business
- New business at the GRENKE Group increases 21.5% to EUR 549.9 million in
Q1
- Proportion of new business from international markets continues to grow
- Adjustment in calculation of the contribution margin 2 brings increased
transparency
Baden-Baden, April 4, 2017: A very satisfactory level of new business growth
in the first quarter provided the GRENKE Group with a good start to the
current 2017 fiscal year. The acquired volume at GRENKE Group Leasing -
defined as the total acquisition costs of newly purchased leased assets -
grew 20.1% to EUR 445.6 million in the first three months (previous year:
EUR 371.1 million). The level of growth is above the projected range for the
full year of 11 to 16%. New business at GRENKE Group Factoring also
developed positively. The total of purchased receivables increased 28.1% to
EUR 97.7 million (previous year: EUR 76.3 million).
"In the first quarter, we built a solid basis for the Group's continued
development throughout the year, recording double-digit growth rates in new
business in all segments of the GRENKE Group. We continued to see strong
growth from our international markets in particular. As a result, the
international share of our new business continued to grow, reaching 74.0%
compared to 71.8% in the previous year," said Wolfgang Grenke, Chairman of
the Board of Directors of GRENKE AG, in his comments on the new business
development in the first three months of 2017.
The calculation of the contribution margin 2 (CM2) for new business in the
Leasing segment was adjusted starting with the first quarter of 2017 to
further improve the transparency of the reconciliation to the Consolidated
Group's operating results. As a result, the CM2 for the three-month period
amounted to EUR 80.8 million compared to EUR 67.8 million in the previous
year, which is equivalent to a CM2 margin of 18.1% (previous year: 18.3%).
For comparison, the values according to the previous calculation method are
listed separately in the table below. The previous CM2 calculation did not
appropriately reflect economies of scale in the cost items. The unchanged
calculation for the CM1 margin (contribution margin 1 at acquisition values)
was 12.4% and reached a level of EUR 55.1 million (previous year: 12.9% and
EUR 48.0 million, respectively).
Sebastian Hirsch, member of the GRENKE AG Board of Directors, added: "The
adjusted calculation of the CM2 margin provides more transparency as the CM2
now directly corresponds to the operating result contained in the income
statement. The income statement shows the contribution of the leasing
portfolio for the respective period whereas the CM2 shows the contribution
over the entire term."
On a regional basis, we recorded a moderate increase in new business
(Leasing segment) of 5.9% in our home market of Germany in the face of
continuing intense competition. This contrasts with the sharply higher
growth achieved in our international markets (+ 24.6%), particularly in the
important market of Italy (38.3%) as well as in Great Britain (40.5%) and
Spain (40.1%).
As part of our cell division strategy, we opened one new location each in
Denmark, Italy and the Netherlands in the first quarter of 2017. We also
opened a new branch office in Abu Dhabi bringing the number of GRENKE
locations at the end of the first quarter to a total of 126 worldwide. In
the second quarter, we plan to enter the Australian market and the rollout
of our factoring offers in Italy.
In the first three months of 2017, the GRENKE Group recorded 119,129 lease
applications (99,800 thereof were international), which generated 52,075 new
lease contracts (42,731 thereof were international). At EUR 8,557 (previous
year: EUR 8,518) the mean acquisition value per lease contract continued to
remain at a level customary for our business.
The GRENKE Group's (Leasing segment) conversion rate (applications into
contracts) was 44%. The conversion rate in our international markets
amounted to 43% and was thereby at a lower level than in the German market
(48%).
In our Factoring segment, we increased our new business volume by a pleasing
28.1%. The gross margin on the new business volume of EUR 42.1 million
acquired in Germany remained at a high level of 1.69% (previous year:
2.01%). In our international markets, the gross margin on new business
volume of EUR 55.6 million amounted to 1.15% (previous year: 1.34%). This
margin is based on the average period of approximately 27 days for a
factoring transaction in Germany (previous year: approx. 29 days) and
approximately 38 days in our international markets (previous year: approx.
38 days).
The development of GRENKE Bank's business start-up financing and microcredit
business was also exceptionally strong, growing year-on-year by 31.1% and
reaching a total volume of EUR 6.6 million.
Overview of new business development (in EUR millions, previous year's
figures have been adjusted)
3M-20- 3M-20- Change
17 16 in %
New business GRENKE Group Leasing 445.6 371.1 20.1
- of which international 336.3 275.2 22.2
- of which Franchise international 15.0 6.9 118.4
- of which Germany 94.4 89.1 5.9
Western Europe (without Germany)* 134.2 124.5 7.8
Southern Europe* 135.8 99.2 36.9
Northern/Eastern Europe* 71.1 53.5 32.9
Other regions* 10.2 4.9 109.0
New business GRENKE Group Factoring 97.7 76.3 28.1
- of which Germany 42.1 33.2 26.6
- of which international 37.1 32.2 15.1
- of which Franchise international 18.5 10.8 71.4
GRENKE Bank
Deposits 446.2 363.7 22.7
New business start-up financing (including the 6.6 5.0 31.1
microcredit business)
Contribution margin 2 on new business
GRENKE Group Leasing 80.8 67.8 19.3
- of which international 64.6 54.3 18.9
- of which Franchise international 3.3 1.3 143.8
- of which Germany 13.0 12.1 7.4
Western Europe (without Germany)* 24.7 23.9 3.5
Southern Europe* 27.1 20.2 34.0
Northern/Eastern Europe* 13.8 10.6 30.6
Other regions* 2.2 1.0 122.1
CM2 margin of new business in % 18.1 18.3 -0.6
CM2 margin of new business in % (previous 16.9 16.8 0.5
calculation)
* Regions: Western Europe (without Germany): Austria, Belgium, France,
Luxembourg, the Netherlands, Switzerland
Southern Europe: Croatia, Italy, Malta, Portugal, Slovenia, Spain
Northern/Eastern Europe: Denmark, Finland, Great Britain, Ireland, Norway,
Sweden / Czech Republic, Hungary, Poland, Romania, Slovakia
Other regions: Brazil, Canada, Chile, Singapore, Turkey, UAE
The Company will publish its quarterly statement for the first quarter of
2017 on May 3, 2017.
For further information, please contact:
GRENKE AG
Corporate Communications / Investor Relations
Renate Hauss
Neuer Markt 2
76532 Baden-Baden
Phone: +49 7221 5007-204
Email: [email protected]
Internet: http://www.grenke.de
The GRENKE Group
The GRENKE Group is a broadly diversified provider of IT-based services in
small-ticket IT leasing, factoring and banking for small- and medium-sized
companies. In addition, the GRENKE Bank also offers its classic online
services to private customers.
The GRENKE Group is independent of vendors and banks and holds a leading
market position in Europe in the field of small-ticket IT leasing for
products such as PCs, notebooks, copiers, printers, or software of
relatively low asset value. The GRENKE Group operates in 30 countries and
employs more than 1,100 staff.
GRENKE AG is listed in the Prime Standard of the Frankfurt Stock Exchange
and is included in the SDAX. GRENKE AG shares are listed on the Frankfurt
Stock Exchange under the code GLJ, ISIN DE000A161N30.
Information on the GRENKE Group and its products is available at
http://www.grenke.de/en.
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04.04.2017 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.
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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
End of News DGAP News Service
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