03.07.2018
GRENKE AG DE000A161N30
DGAP-News: GRENKE AG: Growth momentum at the start of the year continues in the second quarter of 2018
DGAP-News: GRENKE AG / Key word(s): Miscellaneous
GRENKE AG: Growth momentum at the start of the year continues in the second
quarter of 2018
03.07.2018 / 07:18
The issuer is solely responsible for the content of this announcement.
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Growth momentum at the start of the year continues in the second quarter of
2018
- GRENKE Group's new business grows 23% in the first half of 2018
- Higher number of cell divisions: five new locations in Q2, seven in total
after six months
- 2018 full-year forecast for new business growth in the Leasing segment
raised to 18 - 22% (prior forecast 16 - 20%); Consolidated Group net profit
forecast between EUR 123 - 131 million confirmed
Baden-Baden, July 3, 2018: After a strong start in the year, the GRENKE
Group continued to grow in the second quarter of 2018. The acquired volume
at GRENKE Group Leasing - defined as the total acquisition costs of newly
purchased leased assets - increased 23.3% to EUR 609.2 million after EUR
493.9 million in the same quarter of the previous year. With total new
leasing volume of EUR 1,158.4 million in the first six months of 2018
(prior-year period: EUR 939.5 million), the billion-euro threshold was
exceeded for the first time in a six-month period by a significant amount
and corresponds to an increase of 23.3%. New business at GRENKE Group
Factoring has recently benefited in particular from the strong growth of the
international franchise partners. Total purchased receivables increased by
16.4% to EUR 118.8 million in the quarter under review (prior-year period:
EUR 102.1 million) and by 18.0% to EUR 235.6 million in the six-month period
(prior-year period: EUR 199.7 million).
"We are very satisfied with the level of new business achieved in the first
half of 2018. In the second quarter, we were able to maintain the
outstanding growth of the prior quarter. So far this year, we have opened
seven new locations and will continue to add more in the second half of the
year. We are confident that we will be able to generate a sharper increase
in GRENKE Group Leasing's new business in the current fiscal year than
previously forecast. As a result, we now expect an increase in new business
of between 18 and 22 percent versus our prior forecast of 16 to 20 percent
and, at the same time, confirm our earnings forecast for the current 2018
fiscal year," commented Antje Leminsky, Chair of the Board of Directors of
GRENKE AG.
The profitability of new business remained high. In the GRENKE Group's
Leasing segment, the contribution margin 2 (CM2) increased in the 2018
six-month period by 20.8% to EUR 205.1 million compared to EUR 169.8 million
in the same period of the prior-year. This level represents a constant 17.7%
CM2 margin compared to the first quarter of the year. In the first half of
2017, the CM2 margin was 18.1%. The Leasing segment's CM1 margin
(contribution margin 1 at acquisition values) was 12.8% in the first half of
2018 compared to 12.5% in the prior-year period and reached EUR 148.3
million compared to EUR 117.8 million (Q2 2018: 12.9% and EUR 78.8 million).
Particularly noteworthy is the continuous high growth momentum seen in the
comparatively new eSignature online offer. The number of leases signed using
this innovative and fully digital distribution channel increased by 63.0% in
the first half of 2018 (6M-2018: 29,375 contracts; 6M-2017: 18,018
contracts). Since its launch in 2015, our customers have chosen this option
for a total of 88,113 contracts.
As in the first quarter, the regions that continued to stand out showing
very strong growth in the reporting period within our three core leasing
markets were France (+24.6%), as well as Italy (+25.3%). Our core market of
Germany advanced significantly with a plus of 13.1% compared to the previous
year. Among the other major international markets, Spain once again stood
out with new business growth of 42.3%.
"In the second quarter, we extended our cooperation with Kreditanstalt für
Wiederaufbau with a follow-up agreement for a new global loan and launched
our eighth global loan with NRW.BANK. We also arranged a loan of EUR 100
million for the first time with the European Investment Bank. This will
enable small and medium-sized enterprises (SMEs) to benefit from attractive
lease conditions when making new business purchases. In total, more than
42,000 leases have been concluded so far within the scope of such
collaborations," says Sebastian Hirsch, Member of the Board of Directors of
GRENKE AG.
In the January through June period, the GRENKE Group recorded a total of
277,936 lease applications (233,545 thereof were international), which
generated 135,087 new lease contracts (111,227 thereof were international).
The mean acquisition value per lease contract was EUR 8,575 (6M-2017: EUR
8,525) and remained at a level typical for the business. The conversion rate
(applications into contracts) at the GRENKE Group (Leasing segment) was 49%.
The conversion rate in our international markets was 48%, which was lower
than the level of 54% seen in the DACH region.
In our Factoring segment, we were able to increase the volume of new
business in the first six months of the current fiscal year by 18.0% to EUR
235.6 million (6M-2017: EUR 199.7 million). The gross margin of the new
business volume of EUR 85.5 million achieved in Germany remained at a high
level of 1.62% (6M-2017: 1.71%). The gross margin in our international
markets was at the prior year's level of 1.20% on new business volume of EUR
150.1 million. This margin is based on the average period for a factoring
transaction in Germany of roughly 27 days (6M-2017: approx. 27 days) and
close to 40 days on an international level (6M-2017: approx. 36 days).
In the second quarter, GRENKE Bank's lending business for small and
medium-sized enterprises (including business start-up financing) recorded an
even higher increase compared to the beginning of the year. This business
grew 42.9% in the first six months with a volume in absolute terms of EUR
18.7 million as per June 30, 2018 compared to EUR 13.1 million in the same
prior-year period.
The deposit volume of GRENKE Bank increased by 25.3% and amounted to EUR
595.6 million as per June 30, 2018 compared to EUR 475.3 million as per the
end of the first half of 2017.
Overview of new business development (in EUR millions; previous year's
figures have been adjusted)
6M-2018 6M-2017 Change in %
New business GRENKE Group Leasing 1,158.4 939.5 23.3
- of which international 871.4 692.8 25.8
- of which Franchise international 26.5 10.9 143.1
- of which DACH* 260.5 235.8 10.5
Western Europe (without DACH)* 305.2 240.4 27.0
Southern Europe* 371.1 293.5 26.4
Northern/Eastern Europe* 183.4 149.6 22.6
Other regions* 38.2 20.2 89.0
New business GRENKE Group Factoring 235.6 199.7 18.0
- of which Germany 85.5 81.6 4.7
- of which international 67.9 74.7 -9.2
- of which Franchise international 82.3 43.4 89.7
GRENKE Bank
Deposits 595.6 475.3 25.3
New business SME lending business 18.7 13.1 42.9
(incl. business start-up financing)
Contribution margin 2 (CM2) on new business
GRENKE Group Leasing 205.1 169.8 20.8
- of which international 162.6 133.3 22.0
- of which Franchise international 5.6 2.3 145.1
- of which DACH* 36.9 34.3 7.7
Western Europe (without DACH)* 54.8 43.6 25.9
Southern Europe* 71.2 58.3 22.1
Northern/Eastern Europe* 34.2 29.0 18.0
Other regions* 7.9 4.6 69.7
* 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 financial report for the second quarter and
first half-year of 2018 on July 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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03.07.2018 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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700929 03.07.2018
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