The upward trend continues in the first quarter of 2022

DGAP-News: GRENKE AG / Keyword(s): Miscellaneous
05.04.2022 / 07:02
The issuer is solely responsible for the content of this announcement.

GRENKE: The upward trend continues in the first quarter of 2022

New leasing business in Q1 2022 dynamically increases by 36.5% to EUR 499.2 million (Q1 2021: EUR 365.8 million)

– Contribution margin 2 increases to €83.2 million (+16.4% compared to Q1 2021: €71.5 million)

– The average acquisition value per lease is EUR 8,064 (Q1 2021: EUR 7,434)

Baden-Baden, April 5, 2022: GRENKE AG, a global financial partner for small and medium-sized enterprises, generated new leasing business of 499.2 million euros in the first quarter of 2022, an increase of 36.5 YoY % (Q1 2021: €365.8 million). The upward trend continued in the first quarter of the year under review. In the fourth quarter of 2021, new business was up 22.1% year-on-year.

“The external environment remains extremely challenging”, says Michael Bücker, Chairman of the Board of Management of GRENKE AG, in his comments on the current business performance: “We have done a good job and are again on the way to a sustainable growth.” Dr. Sebastian Hirsch, CFO of GRENKE AG, adds: “Thanks to our strong start in new leasing activities in the new financial year, we are more than a third higher than in the same period of the year. previous and fully in line with our orientation for 2022.”

Regional development of new rental activities

Across all regions, new leasing business was significantly higher in the first quarter of 2022 compared to the prior year quarter. The DACH region recorded a year-on-year increase of 13.1% during the reporting period, and Western Europe excluding DACH recorded a growth of 33.9%. The strongest growth in new rental business was generated in Southern Europe with 58.2% and in Northern/Eastern Europe with 58.7%. The other regions recorded an increase of 19.2%.

Evolution of the contribution margin

Contribution margin 2 (CM2) of new leasing business increased by 16.4% to 83.2 million euros in the first quarter of 2022 compared to 71.5 million euros in the first three months of the previous financial year . CM2 margin was 16.7%, 2.8 percentage points below the margin of the exceptionally profitable prior year quarter (Q1 2021: 19.5%) and 0.4 percentage points above the figure for the previous quarter (Q4 2021: 16.3%). Contribution margin 1 (CM1) increased by 19.2% to €55.6 million in the first quarter of 2022 (Q1 2021: €46.6 million). CM1 margin of 11.1% was 1.6 percentage points lower than the same quarter last year (Q1 2021: 12.7%) and higher by 0.5 percentage points than the prior quarter (Q4 2021: 10.6%).

The year-over-year change in contribution margins is the result of higher refinancing costs and a higher average acquisition value per new lease in the first quarter of 2022 of EUR 8,064 (Q1 2021: EUR 7,434). The increase in contribution margins compared to the fourth quarter of 2021 is extremely positive given the high level of refinancing costs. The average acquisition value per contract in new leasing business in the fourth quarter of 2021 was 8,677 EUR.

Preparation of lease applications

Despite the difficult economic context, GRENKE recorded a total of 134,653 lease applications in the first quarter of 2022, significantly above the level of the first quarter of 2021 (116,814 lease applications). In the fourth quarter of 2021, the number of lease applications amounted to 119,825.

At Group level, 61,906 new leases were signed during the first quarter of the reference year, representing a conversion rate of 46% (Q1 2021: 49,213 new leases, conversion rate of 42%) . In the fourth quarter of 2021, 60,064 new leases were signed for a conversion rate of 50%.

Development of the factoring activity and the new credit activity of the Bank

With purchased receivables of EUR 175.1 million, new factoring business recorded an increase of 12.6% compared to the same period of the previous year (Q1 2021: EUR 155.4 million ). In Germany, new factoring business decreased by 15.5%, while new factoring business in international markets increased by 26.3% to EUR 132.1 million. With 15.8 million euros, GRENKE Bank’s new credit activities in the first quarter of 2022 reached a level comparable to that of the same quarter of the previous year (Q1 2021: 14.7 million euros).

Development of refinancing at GRENKE Bank

The deposit activity of GRENKE Bank remained an important pillar of the refinancing of the Consolidated Group with a share of nearly 30%. The volume of deposits amounted to €1.3 billion as of March 31, 2022 (March 31, 2021: €1.6 billion).

Overview of new business development (in millions of euros)

Q1 2022

Q1 2021

Change %

new business

499.2

365.8

36.5

– of which international

381.2

261.5

45.8

– of which DACH*

118.0

104.3

13.1

Western Europe (without DACH)*

131.8

98.4

33.9

Southern Europe*

131.9

83.4

58.2

Northern/Eastern Europe*

90.7

57.2

58.7

Other regions*

26.8

22.4

19.2

New Business Factoring

175.1

155.4

12.6

– of which Germany

43.0

50.8

-15.5

– of which international

132.1

104.6

26.3

GRENKE Bank

New business lending activity

15.8

14.7

7.3

Deposit volume**

1,331.0

1,637.4

-18.7

Contribution margin 2 (CM2) of

new business

83.2

71.5

16.4

– of which international

67.8

56.6

19.6

– of which DACH*

15.5

14.9

4.2

Western Europe (without DACH)*

23.7

21.3

11.0

Southern Europe*

22.0

18.0

22.7

Northern/Eastern Europe*

16.6

11.8

40.7

Other regions*

5.4

5.5

-2.1

Note: rounding differences may occur

*Regions: DACH: Germany, Austria, Switzerland
Western Europe without DACH: Belgium, France, Luxembourg, Netherlands
Southern Europe: Croatia, Italy, Malta, Portugal, Slovenia, Spain
North | Eastern Europe: Denmark, Finland, Ireland, Latvia, Norway, Sweden, United Kingdom | Czechia, Hungary, Poland, Romania, Slovakia
Other regions: Australia, Brazil, Canada, Chile, Singapore, Turkey, United Arab Emirates, United States

** At the end of the period

For more information, please contact:

GRENKE AG
Team Investor Relations
Neuer Markt 2
76532 Baden-Baden
Telephone: +49 7221 5007-204
Email: [email protected]
Internet: www.grenke.de

Press contacts
Stefan Wichmann
Executive communication consultant
Neuer Markt 2
76532 Baden-Baden
Email: [email protected]
Mobile: +49 171 20 20 300

About GRENKE

The GRENKE Group (GRENKE) is a global financial partner for small and medium-sized enterprises. As a one-stop-shop for customers, GRENKE’s products range from low-cost flexible leasing and demand-driven banking products to convenient factoring. Simple and fast processing and personal contact with customers and partners are at the heart of GRENKE’s activities.

Founded in 1978 in Baden-Baden, the GRENKE group is present in 33 countries and employs more than 1,900 people worldwide. GRENKE shares are listed on the SDAX of the Frankfurt Stock Exchange (ISIN DE000A161N30).

05.04.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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