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    GLJ   DE000A161N30

GRENKE AG

(GLJ)
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PRESS RELEASE: GRENKE AG: GRENKE on track with first quarter - pick-up expected in second half-year

05/31/2021 | 01:02am EDT
DGAP-News: GRENKE AG / Key word(s): Quarterly / Interim Statement 
GRENKE AG: GRENKE on track with first quarter - pick-up expected in second half-year 
2021-05-31 / 06:59 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
GRENKE on track with first quarter - pick-up expected in second half-year 
- Net profit of EUR 14.0 million in Q1 2021 (Q1 2020^1: EUR 19.7 million) 
- Cost-income ratio at 51.2% (adjusted for extraordinary consulting and audit costs: 46.0%) 
- Markets expected to pick up in the second half of the year, resulting in stronger new business 
- Business forecast for 2021 reaffirmed: New leasing business of EUR 1.7 to 2.0 billion, net profit in the range of EUR 
50 million to EUR 70 million and equity ratio > 16% 
Baden-Baden, May 31, 2021: GRENKE AG, global financing partner for small and medium-sized enterprises, generated net 
profit of EUR 14.0 million in the first quarter of 2021 (Q1 2020^1: EUR 19.7 million) despite the impact of the 
COVID-19 pandemic. 
"This is a respectable result. The pandemic has hit the global economy hard, and still GRENKE is proving to be more 
than robust, even in these challenging times," said Antje Leminsky, Chair of the Board of Directors of GRENKE AG, in 
her comments on the business performance in the first quarter of 2021. 
Chief Financial Officer Sebastian Hirsch adds: "We are on track. Now we need a return to normality to grow our business 
again. We expect our new business to pick up in the second half of the year." 
The cost-income ratio (CIR) was 51.2% (Q1 2020^1: 43.7%), and thereby exceeded the full-year target of below 50%. This 
is mainly due to the extraordinary consulting and audit costs of EUR 6.7 million for the first quarter as a result of 
the special audits. Adjusted for these non-recurring expenses, the CIR is 46.0%. Consulting and audit costs in the 
first quarter of 2021 came to a total of EUR 11.2 million (Q1 2020^1: EUR 3.9 million). As a result, selling and 
administrative expenses increased 27.5% to EUR 25.2 million in the reporting period (Q1 2020^1: EUR 19.8 million). 
Staff costs remained stable at EUR 31.7 million (Q1 2020^1: EUR 31.7 million). 
The steady payment behaviour of customers had a positive effect in the first quarter of 2021, resulting in risk 
provisions of EUR 44.6 million, which was 21.7% lower than in the same prior-year quarter. The corresponding loss rate 
in the first quarter of 2021 was 2.0%. 
The GRENKE Group's total assets amounted to EUR 7.2 billion as of the March 31, 2021 reporting date (December 31, 2020: 
EUR 7.3 billion). The largest balance sheet item - non-current and current lease receivables - decreased by 3.1% to EUR 
5.5 billion as of the reporting date (December 31, 2020: EUR 5.6 billion). This development reflects the lower volume 
of new business in recent quarters. Liquidity amounted to EUR 1.1 billion as of March 31, 2021 (December 31, 2020: EUR 
0.9 billion). The equity ratio was 16.5% and continued to exceed the self-set target of at least 16%. 
BaFin audits in the final phase 
All of the audit activities in connection with the special audit pursuant to Section 44 of the German Banking Act (KWG) 
that were carried out by the auditing firm Mazars have been completed. GRENKE has received the corresponding reports 
from the German Federal Financial Supervisory Authority (BaFin) as expected. The Company is now reviewing the measures 
already initiated and planned on this basis in coordination with BaFin, who will also determine how to further proceed. 
The enforcement review of GRENKE AG's consolidated financial statements as of December 31, 2019, and the combined group 
management report and management report for the 2019 financial year, which was handed over to BaFin from the German 
Financial Reporting Enforcement Panel on September 30, 2020, is also expected to be completed in the near future. The 
Company has already taken the expected findings into account in its preparation of the 2020 consolidated financial 
statements. 
Outlook 
The year 2021 is a transitional year for GRENKE. The Board of Directors currently expects new leasing business of 
between EUR 1.7 billion and EUR 2.0 billion, compared to EUR 2.0 billion in the previous year, primarily due to the 
pandemic. The COVID-19 pandemic caused the financial year to get off to a subdued start, with the first quarter on par 
with the fourth quarter of 2020. As the year progresses, the Board of Directors expects the markets to pick up and new 
business to be stronger in the second half of 2021 than in the first half. 
The measures from the special audits are planned to be largely implemented during the current financial year. GRENKE 
intends to acquire the first franchise companies by the end of 2021, with the entire acquisition process expected to be 
completed in 2022. 
The lower new business during recent quarters and in the months to come will also be reflected in the operating income 
for full-year 2021. Furthermore, despite lower business volumes, the Board of Directors currently expects costs to 
increase slightly due to the lagging effects of the audits. In total, the Board of Directors expects net profit for the 
2021 financial year in the range of EUR 50 million to EUR 70 million due to the high profitability of the existing 
contract portfolio and new business. 
The quarterly statement for the first quarter of 2021 is available online at www.grenke.com/investor-relations/ 
reports-and-presentations. 
Overview of key figures (in EUR million) 
                                                                                          Q1 2021 vs. Q1 2020   Q1 2020 
                                                                 Q1        Q1 2020^1                 adjusted        as 
                                                               2021        adjusted^                 (? in %)  reported 
New business                                                  536.0            871.0                    -38.5     871.0 
New business Leasing                                          365.8            681.3                    -46.3     681.3 
New business Factoring                                        155.4            171.7                     -9.5     171.7 
New business                                                   14.7             18.0                    -18.2      18.0 
SME lending 
CM2 margin of new leasing business in %                        19.5             18.2                   1.3 pp      18.2 
Net profit                                                     14.0           19.7^1                    -28.8      23.7 
Cost-income ratio in %                                         51.2           43.7^1                   7.6 pp      43.5 
Equity ratio in %                                              16.5           16.3^1                   0.2 pp      17.2 
Consolidated Group's average number of employees (full-time   1,844          1,851^1                     -0.4     1,744 
equivalents) 

^1 Figures have been adjusted in accordance with IAS 8.42 (including the consolidation of franchise companies). Please note: Rounding may result in differences in individual values compared to the values actually achieved in EUR.

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 Internet: www.grenke.de

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

2021-05-31 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de -----------------------------------------------------------------------------------------------------------------------

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 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:  1202331 
 
End of News   DGAP News Service 
=------------ 

1202331 2021-05-31

 
Image link: 
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1202331&application_name=news 
 

(END) Dow Jones Newswires

May 31, 2021 01:01 ET (05:01 GMT)

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Financials
Sales 2021 566 M 666 M 666 M
Net income 2021 65,9 M 77,6 M 77,6 M
Net Debt 2021 5 310 M 6 249 M 6 249 M
P/E ratio 2021 25,4x
Yield 2021 1,24%
Capitalization 1 653 M 1 944 M 1 945 M
EV / Sales 2021 12,3x
EV / Sales 2022 12,7x
Nbr of Employees 1 844
Free-Float 56,1%
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Number of Analysts 6
Last Close Price 35,55 €
Average target price 46,67 €
Spread / Average Target 31,3%
EPS Revisions
Managers and Directors
Antje Leminsky Chairman-Management Board
Sebastian Hirsch Chief Financial Officer & Director
Ernst-Moritz Lipp Chairman-Supervisory Board
Florian Schulte Member-Supervisory Board
Ljiljana Mitic Member-Supervisory Board