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Grenke AG Earnings Release 2015
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Earnings Release
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Corporate | 27 October 2015 07:26
GRENKELEASING AG: Consolidated Group net profit rises 24% to EUR 59.7 million – GRENKE increases its guidance once again
DGAP-News: GRENKELEASING AG / Key word(s): Quarter Results
2015-10-27 / 07:26
Consolidated Group net profit rises 24% to EUR 59.7 million – GRENKE increases its guidance once again
– Net interest income in the first nine months of 2015 climbed 21.9% to EUR 140.4 million (previous year: EUR 115.2 million)
– Consolidated Group net profit grew 23.5% in the first nine months of 2015 from EUR 48.3 million in the previous year to EUR 59.7 million
– 2015 earnings guidance revised higher: Consolidated Group net profit expected in the range of EUR 78 – 80 million (previous guidance: EUR 74 – 78 million)
Baden-Baden, October 27, 2015: The profitable new business of recent quarters and the attractive interest rate environment contributed to the positive development of the first nine months of 2015. The increase in interest income of 21.9% to EUR 140.4 million (9M-2014: EUR 115.2 million) resulted from higher interest income from financing business and lower interest expenses on refinancing.
Expenses for the settlement of claims and risk provision increased at a slower rate in the first nine months and rose 12.2% to EUR 43.8 million (9M-2014: EUR 39.1 million). The loss rate in the first nine months was slightly below the previous year’s level. Net interest income after the settlement of claims and risk provision increased by 26.8% from EUR 76.2 million in the previous year’s period to EUR 96.6 million.
Profit from insurance business climbed 20.9% to EUR 36.9 million (9M-2014: EUR 30.5 million). Profit from new business was 6.7% higher at EUR 37.3 million after EUR 35.0 million in the first nine months of 2014. Including gains/losses from disposals, which tend to be volatile on a quarterly basis, income from operating business increased 19.1% from EUR 143.4 million in the previous year’s period to EUR 170.7 million.
Expenses had a moderate rise in the first nine months in comparison to income growth. Staff costs grew 15.1% and amounted to EUR 46.3 million in the first nine months of 2015 compared to EUR 40.3 million in the previous year’s period. Selling and administrative expenses were 13.2% higher at EUR 38.5 million after EUR 34.0 million in the first nine months of 2014.
The operating result increased by 23.3% to EUR 80.7 million after EUR 65.5 million in the first nine months of 2014.
The Consolidated Group’s net profit in the first nine months of 2015 was 23.5% higher at EUR 59.7 million (previous year: EUR 48.3 million).
We had already increased our net profit guidance for the current 2015 fiscal year at the end of the first half. We are raising our net profit guidance for 2015 once again and now expect net profit in the range of EUR 78 – 80 million (previous guidance: EUR 74 – 78 million). This would represent growth of 20 – 23% compared to the net profit in 2014 of EUR 65.0 million.
At 17.5%, the Consolidated Group’s equity ratio was not only above the previous year’s level but continues to exceed our long-term target of a minimum of 16%.
| Key Figures GRENKE | 9M-2015 | 9M-2014 |
| New business GRENKE Group Leasing | 961.1 | 821.3 |
| New business GRENKE Group Factoring | 230.2 | 149.2 |
| Business start-up financing GRENKE Bank | 14.4 | 8.4 |
| Contribution margin 2 (CM2) on new business GRENKE Group Leasing in % | 18.5 | 19.3 |
| Net profit GRENKE Consolidated Group in EURm | 59.7 | 48.3 |
| Economic result* in EURm | 82 | 75 |
| Cost / income ratio in % | 53.8 | 55.1 |
| Equity ratio in % | 17.5 | 16.7 |
| Number of new leasing contracts in units | 113,448 | 100,596 |
* Net profit + change in embedded value after tax adjusted
From 2015, the method of calculation was adjusted to determine the economic result. The retained earnings are included in both the net profit for the period as well as in the embedded value at the end of the period. Therefore, they are eliminated once in the calculation of the economic result.
These results were generated by 918 employees compared to 838 employees in the first nine months of 2014 (on a full-time basis excluding the members of the Board of Directors and trainees).
“The positive trend witnessed in the first six months of the year continued unabated in the third quarter. Net profit in the nine-month period grew a satisfactory 24 percent to EUR 60 million. On the basis of this encouraging development, we expect to even exceed the increased guidance provided in July 2015 of a net profit in the range of EUR 74 – 78 million. For the year as a whole, we expect a net profit between EUR 78 – 80 million, representing year-on-year growth of at least 20 percent. With these positive results we are entering the last quarter of 2015 with the confidence that we will end the fiscal year as a whole on a successful note”, commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, on the results.
“We are very pleased with the current fiscal year’s performance and intend to continue this trend in the future. Strategically, we rely on limiting risk through the continued expansion of our already extensive range of refinancing instruments. To further strengthen our equity base, we issued a hybrid bond in the third quarter for a total of EUR 30 million. With this instrument, which we used for the first time and fits in well strategically with our profitable growth path and our equity ratio of 17.5 percent, based on total assets of EUR 3.2 billion, we are well equipped to reach our future targets”, highlighted Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG.
The full Financial Report for the 3rd Quarter and the first nine months 2015 can be accessed at www.grenke.de/financialreports
Should you have any queries, please contact:
GRENKELEASING AG
Corporate Communications / Investor Relations
Renate Hauss
Neuer Markt 2
76532 Baden-Baden, Germany
Tel.: +49 7221 5007-204
E-mail: [email protected]
Internet: http://www.grenke.de
The GRENKE Group
The GRENKE Group is a broadly diversified provider of IT-based services in Small-Ticket-IT-Leasing, Factoring and Banking for small and medium-sized companies. In addition, the GRENKE Bank offers its classic online services also to private customers.
The GRENKE Group is independent of vendors and banks and holds a leading market position in Europe in the field of small-ticket IT leasing for products such as PCs, notebooks, copiers, printers, or software of relatively low asset value. The GRENKE Group operates in 29 countries and employs more than 900 staff.
GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock Exchange and is included in the SDAX. GRENKELEASING AG shares are listed on the Frankfurt Stock Exchange with the code GLJ, ISIN DE000A161N30.
Information on the GRENKE Group and its products is available at http://www.grenke.de
2015-10-27 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English |
| Company: | GRENKELEASING 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 |
| End of News | DGAP News Service |
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| 405593 2015-10-27 |