DGAP-News: GRENKE AG / Key word(s): Quarter Results
GRENKE AG: GRENKE continues successful performance throughout the first nine
months - Consolidated Group net profit rises 27.1% to EUR 75.9 million
28.10.2016 / 07:22
The issuer is solely responsible for the content of this announcement.
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GRENKE continues successful performance throughout the first nine months -
Consolidated Group net profit rises 27.1% to EUR 75.9 million
- Net interest income surpasses previous year's level by 14.7%
- Consolidated Group net profit in the first nine months increases by
27.1%
- Company reconfirms forecast raised at time of half-year results of
Consolidated Group net profit in the range of EUR 98 - 102 million
Baden-Baden, October 28, 2016: The positive earnings performance in the
first half-year of 2016 continued for the full nine-month period. The
robust, high-margin new business of earlier periods and a persistently low
interest rate environment led to a 14.7% rise in net interest income for a
total of EUR 161.1 million (9M-2015: EUR 140.4 million).
Expenses for the settlement of claims and risk provision continued their
decline falling 6.0% reaching EUR 41.2 million in the first nine months
compared to their level of EUR 43.8 million in the same period of the
previous year. This decline supported a sharp rise of 24.0% in net interest
income after settlement of claims and risk provision to EUR 119.9 million
compared to EUR 96.6 million in the previous year.
The profit from service business (item's name was changed in first half of
2016 from "profit from insurance business") increased 16.7% to EUR 43.0
million (9M-2015: EUR 36.9 million). Profit from new business was 17.4%
higher at EUR 43.8 million after EUR 37.3 million in the first nine months
of 2015. Including gains/losses from disposals, which tend to be volatile
on a quarterly basis, income from operating business increased 19.9% year-
on-year to EUR 204.7 million compared to EUR 170.7 million.
The Consolidated Group's expenses had a comparatively lower increase in the
nine-month period. Based on the higher number of employees versus the prior
year, staff costs grew 12.4% to EUR 52.1 million (9M-2015: EUR 46.3
million). A similarly moderate rise was recorded in the Consolidated
Group's second largest expense item - selling and administrative expenses -
where higher administrative costs moved this item 13.9% higher to EUR 43.8
million (9M-2015: EUR 38.5 million). The operating result increased 28.0%
to EUR 103.3 million compared to a level of EUR 80.7 million in the same
period of the previous year, which supported the rise of 27.1% in the
Consolidated Group's net profit to EUR 75.9 million (9M-2015: EUR 59.7
million).
Based on the above results, we reconfirm our forecast for the current
fiscal year, which we raised with the announcement of our half-year 2016
results, and continue to expect net profit in the range of EUR 98 - 102
million.
The Consolidated Group continued to maintain its solid balance sheet
structure as per the September 30, 2016 reporting date. At 17.1%, the
equity ratio was slightly higher than its level of 17.0% at the end of the
2015 fiscal year and was also above our long-term target of a minimum of
16%.
<pre>
Key Figures GRENKE 9M-2016 9M-2015
New business GRENKE Group Leasing in EUR million 1,122.4 961.1
New business GRENKE Group Factoring in EUR million 254.6 230.2
Business start-up financing GRENKE Bank in EUR million 18.0 14.4
Contribution margin 2 (CM2) on GRENKE Group Leasing's new 17.1 18.5
business in %
GRENKE Consolidated Group's net profit in EUR million 75.9 59.7
Cost / income ratio in % 50.6 53.8
Equity ratio in % (previous year: December 31) 17.1 17.0
Number of new lease contracts in units 131,208 113,448
</pre>
This gratifying performance was generated by an average of 1,011 employees
(9M-2015: 918 employees on average; full-time equivalents, excluding the
members of the Board of Directors and trainees).
In commenting on the nine-month results, Wolfgang Grenke, Chairman of the
Board of Directors of GRENKE AG said: "We are very pleased overall with our
performance in the first nine months in which we maintained the level of
success achieved during the first half-year. We reconfirm our forecast
range for net profit of EUR 98 - 102 million, which we raised with the
release of the 2016 half-year results. The aforementioned positive
developments give us tremendous confidence that we will end the fourth
quarter and the fiscal year as a whole at a very gratifying level. With
respect to our future growth, we will continue to work consistently on
expanding our international presence and further diversifying our product
range. Our broad range of refinancing instruments and our solid balance
sheet featuring an equity ratio of 17.1% leave us optimally positioned to
reach our future targets".
Changes to the Board of Directors
As per December 31, 2016, Mr. Jörg Eicker will leave the Board of Directors
of GRENKE AG on amicable terms to pursue new challenges. "The Supervisory
Board and the Board of Directors would like to thank Mr. Eicker for his
valuable contribution these past years to GRENKE AG's positive and
successful business performance and market position and, above all, for his
contribution to the development and execution of important projects for
refinancing the GRENKE Group", stated the Chairman of the Supervisory Board
of GRENKE AG, Prof. Dr. Ernst-Moritz Lipp.
The Supervisory Board intends to appoint Mr. Sebastian Hirsch to the GRENKE
AG Board of Directors at its meeting in late November. Mr. Hirsch will
assume responsibility for the areas Refinancing and Treasury. Mr. Wolfgang
Grenke (Chairman of the Board of Directors) will be responsible for the
area Investor Relations, and Mr. Sven Noppes, General Representative, will
take over responsibility for Risk Management and Reporting.
The full quarterly statement for the third quarter and first nine months of
2016 is available at www.grenke.de/financialreports.
For further information, please contact:
GRENKE AG
Corporate Communications / Investor Relations
Renate Hauss
Neuer Markt 2
76532 Baden-Baden
Phone: +49 7221 5007-204
Email: investor@grenke.de
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 30 countries and
employs more than 1,100 staff.
GRENKE AG is listed in the Prime Standard of the Frankfurt Stock Exchange
and is included in the SDAX. GRENKE AG shares are listed on the Frankfurt
Stock Exchange under the code GLJ, ISIN DE000A161N30.
Information on the GRENKE Group and its products is available at http://
www.grenke.de
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28.10.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: investor@grenke.de
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, Tradegate Exchange
End of News DGAP News Service
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515489 28.10.2016
DGAP-News: GRENKE AG: GRENKE continues successful performance throughout the first nine months - Consolidated Group net profit rises 27.1% to EUR 75.9 million
| Source: EQS Group AG