• Adjustment in forecast for Consolidated Group net profit: following net profit of EUR 131 million in the previous year, net profit in the current year forecasted to rise to EUR 138 to 148 million (previous forecast: EUR 147 to 156 million)
  • Target for new business growth at GRENKE Group Leasing narrowed to 16 to 19 percent (previous forecast: 14 to 19 percent)

 

Baden-Baden, July 29, 2019: The profitable new business generated in the past quarters continued to be a key driver of the Consolidated Group’s profitability in the reporting period. The changing overall economic environment and the associated fluctuations in the payment behaviour of customers will result in a higher loss rate. Based on the currently available projections, the Company expects the expenses for settlement of claims and risk provision to increase. Furthermore, GRENKE emphasises that a development such as that seen in the first half-year represents a certain degree of normalisation, as the losses in recent years, which were accompanied by a sharp rise in new business volume, were at a very low level. As a result, the Board of Directors is adjusting the full-year forecast for Consolidated Group net profit to EUR 138 to 148 million (previous forecast: EUR 147 to 156 million), which represents an increase of 5 to 13 percent compared to the previous year.

Given the robust business model and the continued good growth outlook, the Company is narrowing its forecast for new business growth in 2019 at GRENKE Group Leasing to 16 to 19 percent (previous forecast: 14 to 19 percent).

The GRENKE Consolidated Group’s financial report for the second quarter and first half-year of 2019 will be published on July 30, 2019.

Analysts and investors are kindly asked to direct any questions to

Renate Hauss
Director Investor Relations
Phone: +49 7221 5007-182
Email: rhauss@grenke.de