DGAP-News: GRENKE AG: GRENKE maintains its position in Q2 2020 and sees the first pickup in new leasing business
DGAP-News: GRENKE AG
/ Key word(s): Miscellaneous
GRENKE maintains its position in Q2 2020 and sees the first pickup in new leasing business - New business at GRENKE Group Leasing amounts to EUR 402.3 million (-45.2% compared to Q2 2019) - Subdued development in April and May with first signs of recovery emerging in June - Consolidated Group CM2 margin increases to 17.5% (Q2 2019: 16.6%) Baden-Baden, Germany, July 2, 2020: GRENKE AG, a global financing partner for small- and medium-sized enterprises, maintained its position in new leasing business in the second quarter of 2020 in the face of the global COVID-19 pandemic. After significantly subdued development at the beginning of the quarter due to the economic restrictions caused by the COVID-19 pandemic, the Company recorded the first pickup in new business in June. Recording a decline of 45.2% (Q2 2019: EUR 734.6 million), new business, which is defined as the total acquisition costs of all newly purchased leased assets, was within the range of approximately 50% of the new business volume planned at the beginning of the year prior to the outbreak of the pandemic, as recently communicated by the Board of Directors. "We are seeing that the situation in several regions has eased somewhat. We saw the first pickup in new business in June. Whether this turns out to be a trend will continue to depend heavily on overall economic development. Right now, it is too soon to assess as to whether and how quickly we will move towards normalisation", explains Antje Leminsky, Chair of the Board of Directors of GRENKE AG. Regional development of new business Development of percentage contribution margins "Even in the difficult market environment, we were able to maintain our position and increase our percentage contribution margins over the prior year in all regions. At the same time, we are solidly financed, especially when we consider the growth in our deposit business at GRENKE Bank. This is very important to us because this liquidity gives us the peace of mind and flexibility, which will also be a benefit when demand starts picking up again more strongly", explains Sebastian Hirsch, member of the Board of Directors of GRENKE AG. Development of contribution margins Contribution margin 1 (CM1), which consists of the contractual cash flows from lease contracts, remained essentially stable with a CM1 margin of 12.1% (Q2 2019: 12.4%) and amounted to EUR 48.5 million (Q2 2019: EUR 91.0 million). The GRENKE Group received a total of 111,934 lease applications in the second quarter of 2020. Of these, 24,348 originated in the DACH region and 87,586 in international markets. At the Group level, 50,381 new lease contracts were concluded based on these applications, which corresponds to a conversion rate of 45%. With a purchased receivables volume of EUR 141.7 million, new business at GRENKE Group Factoring recorded a decline of 13.1% compared to the same period of the previous year (Q2 2019: EUR 163.1 million). Due to the increased demand for KFW development loans, the SME new lending business of GRENKE Bank of EUR 54.2 million reached a significantly higher level in the second quarter of 2020 than in the same quarter of the previous year (Q2 2019: EUR 11.9 million). The deposit business of GRENKE Bank increased by 70.5% in the second quarter of 2020 and thus contributed EUR 1,312.3 million (Q2 2019: EUR 769.9 million) to the Consolidated Group's refinancing. Outlook 2020 Overview of new business development (in EUR millions)
*Regions: DACH: Germany, Austria, Switzerland ** At the end of the reporting period The half-year financial report will be published on July 30, 2020. About GRENKE Founded in 1978 in Baden-Baden, the Group operates in 32 countries and employs more than 1,700 staff worldwide. GRENKE shares are listed in the MDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30). Further information about GRENKE and its products is available at www.grenke.com.
02.07.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
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: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1084363 |
End of News | DGAP News Service |
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1084363 02.07.2020
Grenke AG Aktie
Positive Stimmung für Grenke AG mit mehreren Buy-Einschätzungen, keine Sell-Einschätzungen.
Das Kursziel von 30 € für Grenke AG impliziert eine deutliche Steigerung um über 20% gegenüber 21.75 €.