04.04.2018
GRENKE AG DE000A161N30
DGAP-News: GRENKE AG: The year starts off successfully with robust new business in the first quarter of 2018
DGAP-News: GRENKE AG / Key word(s): Miscellaneous
GRENKE AG: The year starts off successfully with robust new business in the
first quarter of 2018
04.04.2018 / 07:13
The issuer is solely responsible for the content of this announcement.
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The year starts off successfully with robust new business in the first
quarter of 2018
- New business at the GRENKE Group grows by 22.8% in the first quarter of
2018
- eSignature enjoys strong popularity with a continued increase in the
number of contracts
- Company continues cell divisions
Baden-Baden, April 4, 2018: With the robust new business growth in the first
quarter, the GRENKE Group is laying a solid foundation to achieve its 2018
targets. New business at GRENKE Group Leasing - defined as the total
acquisition costs of newly purchased leased assets - increased 23.3%
year-on-year to EUR 549.2 million (3M-2017: EUR 445.6 million). New business
at GRENKE Group Factoring was also strong based on a rise in total purchased
receivables of 19.6% year-on-year to EUR 116.8 million (3M-2017: EUR 97.7
million).
"2018 is a very special year for us as we reflect on four decades of
phenomenal success - decades during which we expanded the Company entering
attractive markets on a global scale. Most important, however, is that we
continue to effectively seize our growth opportunities and highlight our
innovative products. A good example of this is the level of new business we
achieved in the first quarter of 2018, getting us off to a positive start in
the year", said Antje Leminsky, Chair of the Board of Directors of GRENKE AG
since March 1, 2018, in her comments on the first quarter's success.
We were very pleased with the profitability of new business accompanied by a
persistent level of high growth. The contribution margin 2 (CM2) in the
Leasing segment in the first three months of the year amounted to EUR 97.1
million after EUR 80.8 million in the same period of the prior year. This
level corresponds to a CM2 margin of 17.7% compared to 18.1% in the first
three months of the prior year. The Leasing segment's CM1 margin
(contribution margin 1 at acquisition values) amounted to 12.7% and EUR 69.5
million (3M-2017: 12.4% and EUR 55.1 million).
Important to highlight is the continued rise in the number of contracts
concluded using eSignature in the first quarter of 2018. This innovative
product that enables lease contracts to be processed entirely electronically
has already helped conclude a total of 72,766 contracts since its launch in
2015. Our leasing product portfolio also developed well, particularly in
terms of its increased diversification since 2017. Since that time, the
share of medical devices and small machinery and systems has experienced a
marked increase from 21.1% to 27.2%.
On a regional basis, among our three core leasing markets, France (+28.3%)
and Italy (+27.0%) recorded particularly strong growth. Our core market of
Germany also increased by a very satisfactory 13.7% over the previous year,
demonstrating our gains in market share in all three markets. Among the
other major international markets, Spain stood out with reported new
business growth of 36.2%. "All of our regions are growing, and we are on
track to reach our full-year forecasts in the Leasing, Factoring and Banking
segment. We have already taken an important step this year to finance this
future growth by successfully issuing a five-year, fixed-rate bond in the
amount of EUR 200 million in March", explains Sebastian Hirsch, member of
the GRENKE AG Board of Directors.
We opened one new location each in Croatia and the Netherlands in the first
quarter of 2018 as part of our cell division strategy. We also acquired the
companies of our former franchisees in Croatia and the United Arab Emirates.
"The former franchisees have done a great job in their respective markets
and have firmly anchored GRENKE's product range with local small and
medium-sized businesses. We are pleased to be able to now fully integrate
their companies into the Consolidated Group", said Sebastian Hirsch, in his
description of GRENKE Group's expansion. GRENKE is now available for
customers on five continents with 134 locations worldwide. The Company is
preparing for further cell divisions and the entry into the markets in the
Baltic States and New Zealand scheduled for later this year.
In the period from January to March, the GRENKE Group recorded a total of
140,722 lease applications (118,122 thereof were international), which
generated 65,059 new lease contracts (53,541 thereof international). At EUR
8,441 (3M-2017: EUR 8,557), the mean acquisition value per lease contract
remained at a level customary for our business.
The conversion rate (applications into contracts) in the GRENKE Group
(Leasing segment) was 46%. In our international markets, 45% of applications
were converted into contracts, which was lower than the level of 51% in the
DACH region.
As mentioned above, the volume of new business in our Factoring segment
increased by 19.6% to EUR 116.8 million (3M-2017: EUR 97.7 million). The
gross margin on the new business volume of EUR 43.6 million in Germany
remained at a high level of 1.60% (3M-2017: 1.69%). In our international
markets, the gross margin on new business of EUR 73.3 million was 1.26%
(3M-2017: 1.15%). This margin is based on the average period of a factoring
transaction of approx. 28 days in Germany (3M-2017: approx. 27 days) and
approx. 40 days on an international level (3M-2017: approx. 38 days).
GRENKE Bank recorded a gratifying increase of 36.4% in the lending business
for small and medium-sized enterprises (including start-up financing). The
volume as per March 31, 2018 in absolute terms amounted to EUR 9.0 million
compared to EUR 6.6 million in the previous year. Deposits increased by
29.3% and amounted to EUR 576.6 million compared to EUR 446.2 million as per
March 31, 2017.
Overview of new business development (in EUR millions, previous year's
figures have been adjusted)
3M-2018 3M-2017 Change in %
New business GRENKE Group Leasing 549.2 445.6 23.3
- of which international 407.2 320.8 26.9
- of which Franchise international 16.3 12.0 36.0
- of which DACH* 125.8 112.8 11.5
Western Europe (without DACH)* 152.1 115.8 31.4
Southern Europe* 171.7 135.8 26.4
Northern/Eastern Europe* 84.4 71.1 18.8
Other regions* 15.2 10.2 49.5
New business GRENKE Group Factoring 116.8 97.7 19.6
- of which Germany 43.6 42.1 3.5
- of which international 35.1 37.1 -5.3
- of which Franchise international 38.1 18.5 106.4
3M-2018 3M-2017 Change in %
GRENKE Bank
Deposits 576.6 446.2 29.3
New business SME lending business 9.0 6.6 36.4
(incl. business start-up financing)
Contribution margin 2 /CM2) of new business
GRENKE Group Leasing 97.1 80.8 20.1
- of which international 75.7 61.8 22.5
- of which Franchise international 3.5 2.5 37.9
- of which DACH* 17.9 16.5 8.5
Western Europe (without DACH)* 27.2 21.2 28.2
Southern Europe* 33.2 27.1 22.3
Northern/Eastern Europe* 15.6 13.8 13.3
Other regions* 3.3 2.2 46.3
* Regions: DACH: Germany, Austria, Switzerland
Western Europe (without DACH): Belgium, France, Luxembourg, the Netherlands
Southern Europe: Croatia, Italy, Malta, Portugal, Slovenia, Spain
Northern/Eastern Europe: Denmark, Finland, Ireland, Norway, Sweden, UK /
Czechia, Hungary, Poland, Romania, Slovakia
Other Regions: Australia, Brazil, Canada, Chile, Singapore, Turkey, UAE
The Company will publish its quarterly statement for the first three months
of 2018 on April 27, 2018.
For more information, please contact:
GRENKE AG
Investor Relations
Renate Hauss
Neuer Markt 2
76532 Baden-Baden
Phone: +49 7221 5007-204
Email: [email protected]
Internet: http://www.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 Company operates in 31 countries and
employs more than 1,300 staff worldwide. GRENKE shares are listed in the
SDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30).
Further information about GRENKE and its products is available at
http://www.grenke.de
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04.04.2018 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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