- Nine-month net profit increases by 5.2% to EUR 103.0 million (9M-2018: EUR 98.0 million)
- Loss rate is stable compared to the second quarter of 2019 and in line with expectations
- Forecast for net profit of EUR 138 to 148 million in the 2019 fiscal year confirmed
Baden-Baden, October 30, 2019: In the third quarter of 2019, the GRENKE Group continued to grow and, at the same time, increase profitability. "With net profit up 5.2% from EUR 98.0 million to EUR 103.0 million in the first nine months of the current fiscal year, we are in line with our expectations announced at the half-year. As a result, we are confirming our forecast for Consolidated Group net profit for the full year in the range of EUR 138 and 148 million," commented Antje Leminsky, Chair of the Board of Directors of GRENKE AG. A decisive con-tribution to the favourable business performance was made by the consistently strong devel-opment of new business across all business units. In the first nine months of 2019, new busi-ness at GRENKE Group increased by 23.3% year-on-year. Growth in the Leasing business amounted to 21.7%, while the sum of purchased receivables in the Factoring business rose 29.9%.
The sum of interest and similar income from financing business in the first nine months rose by 15.2%. Expenses from interest on refinancing increased by 17.8%. This contributed to a year-on-year increase in net interest income of 14.8% from EUR 209.0 million in the prior-year's nine-month period to EUR 239.9 million in 2019. At 1.6%, the Consolidated Group’s loss rate held steady compared to the second quarter of 2019 (9M-2018: 1.3%).The settlement of claims and risk provision amounted to EUR 92.2 million after EUR 66.6 million in the first nine months of 2018. Net interest income after settlement of claims and risk provision increased by 3.7% to EUR 147.7 million compared to a level of EUR 142.4 million in the same period in the previous year. Including the profit from service business and new business, the Consolidated Group’s income from operating business increased by 10.4%, from EUR 262.3 million in the previous year to EUR 289.5 million.
The average number of employees at the GRENKE Consolidated Group increased by 15.4% to 1,649 employees compared to the same period of the previous year. As a result, staff costs increased by 12.8% compared to the nine-month period of the prior year. Selling and admin-istrative expenses – another significant cost item for the Consolidated Group – declined by 2.1%.
The operating result exceeded the previous year's level of EUR 117.3 million by 7.2% and amounted to EUR 125.8 million. Net profit in the nine-month period increased by 5.2% to EUR 103.0 million, compared to EUR 98.0 million in the same period of 2018. Earnings per share therefore equalled EUR 2.08, compared to EUR 2.07 in the same period of the prior year. With an equity ratio as per September 30, 2019 of 16.9%, this ratio continues to stand above the long-term benchmark of 16%.
"Our loss rate stabilised in the third quarter, as expected. At the same time, we were able to improve our contribution margin 2, alongside excellent new business growth. We intend to continue on this path in order to expand our earnings growth and sustainably increase the Company's enterprise value," explains Sebastian Hirsch, member of the Board of Directors of GRENKE AG.
The quarterly statement for the third quarter is available here.