27.07.2018
GRENKE AG DE000A161N30
DGAP-News: GRENKE's earnings continue to grow in the first half of 2018
DGAP-News: GRENKE AG / Key word(s): Quarterly / Interim Statement
GRENKE's earnings continue to grow in the first half of 2018
27.07.2018 / 07:19
The issuer is solely responsible for the content of this announcement.
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GRENKE's earnings continue to grow in the first half of 2018
- Half-year net profit increases 23.1% to EUR 63.4 million (6M-2017: EUR
51.5 million)
- Very solid financing: Renewed confirmation of Company's investment grade
rating with a stable outlook: equity ratio rises to 18.8%
- Full-year targets confirmed
Baden-Baden, July 27, 2018. The GRENKE Consolidated Group continued its
dynamic development during the first six months of its 2018 anniversary
year. Net profit rose by 23.1% to EUR 63.4 million compared to EUR 51.5
million in the same period of the prior year. The Company confirms its 2018
fiscal year forecast for net profit of EUR 123 to EUR 131 million. As
already reported on July 3, 2018, the sharp increase in new business at
GRENKE Group Leasing in the first half of the year prompted the Company to
raise its growth target for new business in the Leasing segment from the
previous range of 16 to 20 percent to 18 to 22 percent.
For Antje Leminsky, Chair of the Board of Directors of GRENKE AG, these
results demonstrate that the Company is clearly on course: "Our tried and
true business model is and remains highly profitable - and future proof. We
are applying it to an ever-growing number of new product and service offers
and deepening our international market penetration. Further digitisation
along the entire value chain opens up additional opportunities for us".
In the reporting period, the profitable new business of the recent past
continued to be the strongest driver of net interest income and, thus, the
profitability of the Consolidated Group. The sum of interest and similar
income from financing business increased by 14.0% versus a rise in expenses
from interest on refinancing of just 11.3%. As a result, net interest income
grew by 14.4% to EUR 137.2 million after EUR 119.9 million in the first half
of the prior year. Net interest income after the settlement of claims and
risk provision - which as per the beginning of 2018 under IFRS 9 includes
not only losses that have already occurred but also expected losses -
increased 13.4% to EUR 94.4 million compared to EUR 83.3 million in the same
period of the prior year. The Consolidated Group's loss rate, based on the
overall risk provisioning in accordance with IFRS 9, amounted to 1.4% after
1.4% in the first quarter of 2018. The results from service business and new
business increased 20.6% and 22.2%, respectively. Overall, the Consolidated
Group's income from operating business increased 19.3% from EUR 144.1
million in the previous year to EUR 171.9 million.
Including the most recent cell divisions and acquisitions, the average
number of employees at the GRENKE Consolidated Group increased by 18.2% to
1,397 employees compared to last year's period. Staff costs were 19.8%
higher than the previous year's level, and the Consolidated Group's second
major expense item, selling and administrative expenses, increased by 19.9%
as a result of the Consolidated Group's growth and intensified sales and
marketing activities.
The operating result exceeded the previous year's figure of EUR 68.7 million
by 11.2%, reaching EUR 76.4 million. As mentioned, net profit increased in
the first half-year by 23.1% to EUR 63.4 million compared to EUR 51.5
million in the prior year, resulting in earnings
per share of EUR 1.35 in the first half of 2018 compared to EUR 1.13 in the
first half of the prior year.
The Consolidated Group's balance sheet structure was very solid as per the
June 30, 2018 reporting date. In addition to higher retained earnings due to
the net profit achieved in the reporting period, GRENKE AG's equity was
increased by roughly EUR 200 million against cash contribution in June 2018.
Overall, the equity ratio grew from 16.7% as per the end of 2017 to 18.8%,
visibly exceeding our long-term benchmark of 16%.
"We continue to pursue our international growth path, which requires solid
financing. With our very successful capital increase in June, despite the
rather difficult overall market environment, we have been able to strengthen
our equity base by a total of almost EUR 200 million. In addition, GRENKE AG
was recently given a top financial market rating once again with the award
of the credit rating BBB+ and a stable outlook from the rating agency
Standard & Poor's. This rating gives us continued flexibility on the capital
market, thereby providing us access to the funds needed for our future
growth", explained Sebastian Hirsch, member of the Board of Directors of
GRENKE AG.
The 2018 half-year financial report is available at
www.grenke.de/financialreports.
Overview of key figures (in EUR millions)
6M-2018 6M-2017 Change in %
New business GRENKE Group Leasing 1,158.4 939.5 23.3
New business GRENKE Group Factoring 235.6 199.7 18.0
New business SME lending business 18.7 13.1 42.9
(incl. business start-up financing)
CM2 margin on new business Leasing in % 17.7 18.1 -2.2
Net profit GRENKE Consolidated Group* 63.4 51.5 23.1
Cost / income ratio in %* 56.5 54.8 3.1
Equity ratio in %* 18.8 15.4 22.1
Consolidated Group's average number of 1,397 1,182 18.2
employees
*Previous year's figures adjusted in accordance with IRFS 9.
Please note: Due to rounding, differences to the actual number in euro may
occur in individual figures.
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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27.07.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
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Archive at www.dgap.de
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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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708541 27.07.2018
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