DGAP-News: GRENKE AG: GRENKE strengthens new leasing business in Q3 2020 with stronger focus on profitability
DGAP-News: GRENKE AG
/ Key word(s): Miscellaneous
GRENKE strengthens new leasing business in Q3 2020 with stronger focus on profitability - New business at GRENKE Group Leasing totals EUR 517.6 million (-24.6% compared to Q3 2019), and at 75% of the previous year's level, new business slightly exceeds the Company's own forecast - Contribution margin 2 increases to 18.4% compared to 17.1% in Q3 2019 Baden-Baden, October 2, 2020: GRENKE AG, a global financing partner for small and medium-sized enterprises, was able to maintain its position in the new leasing business during the third quarter of 2020 amid the global COVID-19 pandemic. After a first pickup in new business in June, the Company continued its positive development during the third quarter of 2020. Achieving a level of 75.4% of the previous year's quarter (Q3 2019: EUR 686.8 million), the volume of new business was slightly above the level most recently communicated by the Board of Directors of around 70% of the previous year's quarter. New business volume is defined as the sum of the total acquisition costs of all newly purchased leased assets. "The fact that our new leasing business is developing positively despite the COVID-19 pandemic is a strong sign", said Antje Leminsky, Chair of the Board of Directors of GRENKE AG. "This performance gives us momentum - particularly in light of the short-seller attack we are currently facing - and we will continue to do everything in our power to refute the unjustified accusations. My special thanks goes out to our 1,700 employees, who are persevering in the current situation. We will master this crisis together." Regional development of new business Development of percentage contribution margins "Even though the COVID-19 pandemic is not yet over, these results show that we are on the right track", said Sebastian Hirsch, member of the Board of Directors of GRENKE AG. "Above all, we have succeeded in achieving an increase in our contribution margins in all regions. We will continue to focus going forward on the solid profitability of our new business". Contribution margin 1 (CM1) declined by 23.7% to EUR 65.9 million (Q3 2019: EUR 86.5 million), while the CM1 margin remained stable at 12.7% (Q3 2019: 12.6%). The GRENKE Group received a total of 132,065 leasing applications in the third quarter of 2020. Of these, 26,779 applications originated from the DACH region and 105,286 from international regions. At the Group level, 64,293 new leasing contracts were concluded from these applications, which corresponds to a conversion rate of 49%. With purchased receivables of EUR 154.4 million, new business at GRENKE Group Factoring recorded a decline of 9.3% compared to the same period of the previous year (Q3 2019: EUR 170.2 million). The development of new business in the third quarter of 2020 essentially reflected the restrictions of macroeconomic activity prevailing in Q2 2020 with a time lag. The new SME lending business of GRENKE Bank reached EUR 32.1 million in the third quarter of 2020, which was a significantly higher level than in the same quarter of the previous year (Q3 2019: EUR 13.9 million). This rise was a result of higher demand for KFW development loans. GRENKE Bank's deposit business, with a portfolio volume of EUR 1,300.0 million as of September 30, 2020 (June 30, 2020: EUR 1,312.3 million), remains an important pillar of the Consolidated Group's refinancing. In comparison to September 30, 2019, the deposit volume rose from EUR 799.3 million by a total of 62.7%. Overview of new business development (in EUR millions)
Please note: Rounding differences may occur. *Regions: DACH: Germany, Austria, Switzerland The quarterly statement for the third quarter and the first nine months of 2020 will be published on October 29, 2020. For further information, please contact: GRENKE AG Press contact About GRENKE Founded in 1978 in Baden-Baden, the Group operates in 33 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.
02.10.2020 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: | 1138471 |
End of News | DGAP News Service |
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1138471 02.10.2020
Grenke AG Stock
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