GRENKE AG raises profit forecast for 2021

GRENKE AG raises profit forecast for 2021
 

• Consolidated Group net profit of EUR 60-80 million expected (previous forecast: EUR 50-70 million) 
• Stable payment behaviour of customers - Decrease in expenses for settlement of claims and adjustment in risk provisioning

Baden-Baden, July 28, 2021: GRENKE AG, a global financing partner for small and medium-sized enterprises, is raising its profit forecast for 2021. The Board of Directors now expects a Consolidated Group net profit after taxes of between EUR 60 million and EUR 80 million, compared to the previous forecast of EUR 50 million to EUR 70 million published with the publication of the 2020 Annual Report. According to preliminary figures, Consolidated Group net profit reached EUR 32 million in the first six months (1H 2020: EUR 33.2 million).

Based on the preliminary half-year figures for 2021, the need for risk provisioning ended up decreasing. Due to the high level of uncertainty resulting from the pandemic, the Board of Directors had previously projected a higher level of risk provisioning. The main reason for the change in the assessment is the continued stable payment behaviour of customers. The Board of Directors of GRENKE AG expects this to continue in the second half of 2021. The target range for net profit in the current fiscal year was raised as a result.

"Even though a high level of pandemic-related uncertainty remains, we are starting to see a normalisation in our operating business. This gives us strong confidence in the performance in the second half of the year. Our risk provisioning at the beginning of the year was appropriately cautious in view of the circumstances. The positive trend now allows us to raise our net profit outlook for the second half-year, despite our continued conservative risk provisioning," commented Chief Financial Officer, Dr Sebastian Hirsch.

According to preliminary figures, the profit and loss item settlement of claims and risk provisioning decreased to EUR 84 million in the first half of 2021 (1H 2020: EUR 123.1 million). In the previous year, this item had increased significantly as a result of expected payment defaults at the beginning of the COVID-19 pandemic. Primarily due to the continuing negative impact of the pandemic, the Board of Directors still expects new leasing business in the range of EUR 1.7 billion and EUR 2.0 billion, following a level of EUR 2.0 billion in 2020. The Board of Directors also continues to expect to achieve an equity ratio of more than 16 percent.

For further information, please contact:

GRENKE AG
Team Investor Relations
Neuer Markt 2
76532 Baden-Baden
Phone: +49 7221 5007-204
Email: investor@grenke.de
Website: www.grenke.com

Press contact
Stefan Wichmann
Executive Communications Consulting
Neuer Markt 2
76532 Baden-Baden
Mobile: +49 (0) 171 20 20 300
Email: presse@grenke.de

About GRENKE

The GRENKE Group (GRENKE) is a global financing partner for small and medium-sized companies. As a one-stop shop for customers, GRENKE's products range from flexible small-ticket leasing and demand-driven bank products to convenient factoring. Fast and easy processing and personal contact with customers and partners are at the centre of GRENKE's activities.

Founded in 1978 in Baden-Baden, the Group operates in 33 countries and employs more than 1,800 staff (full-time equivalents) worldwide. GRENKE shares are listed in the SDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30).