Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Grenke AG    GLJ   DE000A161N30

GRENKE AG

(GLJ)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

PRESS RELEASE : GRENKE AG: GRENKE substantially increases contribution margin 2 in Q1 2021 and achieves 53.7% of new leasing business generated in strong prior-year quarter

04/07/2021 | 12:59am EDT
DGAP-News: GRENKE AG / Key word(s): Miscellaneous 
GRENKE AG: GRENKE substantially increases contribution margin 2 in Q1 2021 and achieves 53.7% of new leasing business 
generated in strong prior-year quarter 
2021-04-07 / 06:57 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
GRENKE substantially increases contribution margin 2 in Q1 2021 and achieves 53.7% of new leasing business generated in 
strong prior-year quarter 
- New leasing business in Q1 2021 reaches EUR 365.8 million (Q1 2020: EUR 681.3 million) 
- Contribution margin 2 increases in Q1 2021 to 19.5% (Q1 2020: 18.2%) 
- Focus on small ticket contracts leads to higher profitability 
- Mean acquisition value per lease contract at EUR 7,434 (Q1 2020: EUR 9,005) 
- Completion of audits by Mazars and KPMG expected in the coming weeks 
- Publication of 2020 financial figures planned for April 30, 2021 - potentially before audit opinion is issued 
Baden-Baden, April 7, 2021: GRENKE AG, a global financing partner for small and medium-sized enterprises, generated new 
leasing business of EUR 365.8 million in Q1 2021, equalling 53.7% of the level in the strong prior-year quarter (Q1 
2020: EUR 681.3 million). The new business development in Q1 2021 is a consequence of the weaker economy resulting from 
the corona pandemic as well as the result of the Company's successful focus on small ticket contracts, which generate 
higher contribution margins. The higher number of contracts also leads to broader risk diversification. New leasing 
business is defined as the total acquisition cost of all newly purchased leased assets. 
"With our presence in the market, we are supporting SMEs with their investments, even in these difficult times. 
Although, as a result of the pandemic, we were not yet able to return to pre-corona levels in the first quarter of 
2021, we did see rising applications in new leasing business in recent days. These have even exceeded the level reached 
in the final days of March 2020," commented Antje Leminsky, Chair of the Board of Directors of GRENKE AG, on the first 
quarter of 2021. 
Sebastian Hirsch, Chief Financial Officer of GRENKE AG, added, "We have been and still are well prepared for the 
challenging situation caused by corona. In our new business management, we pay particular attention to contribution 
margins and risk limitation. Here, we also benefit from our broad international positioning." 
Regional development of new leasing business 
In a regional analysis, new leasing business in GRENKE's strongest region, the DACH region, decreased by 34.1% in the 
first quarter of 2021 compared to the first quarter of 2020. Western Europe without DACH recorded a 44.5% decline in 
new leasing business in the current reporting period. New business decreased by 57.6% in Southern Europe and by 52.5% 
in Northern/Eastern Europe. The other regions from the leasing business registered a 20.6% decline in new business. 
This development is attributable both to the strategic focus on higher margins in new business and to lower overall 
demand in the target markets due to the economic situation. 
Percentage contribution margin development 
In the first quarter of 2021, contribution margins developed in line with the volume of new leasing business. The 
contribution margin 2 (CM2) of the leasing business amounted to EUR 71.5 million, compared to EUR 123.9 million in the 
same prior-year quarter. The decline caused by the lower volume of new business was partially offset by the increase in 
the CM2 margin to 19.5% (Q1 2020: 18.2%). The higher CM2 margin was largely made possible through the consistent focus 
on the profitable small ticket business. The mean acquisition value per lease contract developed accordingly and 
amounted to EUR 7,434 in Q1 2021 (Q1 2020: EUR 9,005). "Small tickets" are defined as lease contracts with a volume of 
between EUR 500 and EUR 25,000. 
Contribution margin 1 (CM1) in Q1 2021 reached EUR 46.6 million (Q1 2020: EUR 88.1 million), recording a decline of 
47.1% in line with the decrease in new business volume. At 12.7%, the CM1 margin was slightly below the prior-year 
level (Q1 2020: 12.9%). 
Regional development of contribution margins 
In the first quarter of 2021, contribution margin 2 in the DACH region decreased by 38.7% compared to the strong 
prior-year quarter. A smaller decrease was recorded in Western Europe without DACH at 36.1%. In the Southern Europe and 
Northern/Eastern Europe regions, contribution margins declined the most, by 51.8% and 48.3%, respectively. 
Given the current economic environment, the number of lease applications registered by GRENKE in the first quarter of 
2021 totalling 116,814 remained stable at the level of the previous fourth quarter of 2020 (115,260 lease 
applications). In the first quarter of 2020, which was still largely unaffected by the COVID-19 pandemic, the number of 
lease applications equalled 154,175. In the first quarter of 2021, 22,285 applications were received in the DACH region 
and 94,529 in international regions. At Group level, 49,213 new leases were concluded, corresponding to a conversion 
rate of 42%. The conversion rate in the fourth quarter of 2020, in contrast, was 49% with 56,182 new leases. In the 
first quarter of 2020, 75,654 lease contracts were concluded for a conversion rate of 49%. 
Development of the factoring business 
With a purchased receivables volume of EUR 155.4 million, new factoring business declined by 9.5% compared to the same 
period of the previous year (Q1 2020: EUR 171.7 million). In Germany, factoring new business increased by 3.3% despite 
the lower level of overall economic activity. In the international markets, factoring new business saw a decline of EUR 
19.7 million to EUR 18.3 million. The six franchise companies contemplated for acquisition contributed EUR 86.3 million 
to new factoring business in the reporting quarter, for an increase of 2.1% compared to the first quarter of the 
previous year. 
Development of GRENKE Bank 
The new business in the area of SME lending previously comprised loans to small and medium-sized enterprises, business 
start-up financing and the microcredit business. At EUR 14.7 million, GRENKE Bank's new business in the first quarter 
of 2021 was 18.2% below the prior-year quarter (Q1 2020: EUR 18.0 million) and is attributable to the microcredit 
business. Here, loans are granted under the "Microcredit Fund Germany" of the German Federal Ministry of Labour and 
Social Affairs and are secured by the federal government. In the first quarter of 2020, microcredit business reached 
EUR 4.5 million. Loans to small and medium-sized enterprises were discontinued in Q1 2021, as already announced in 
February 2021. GRENKE Bank's deposit business continues to be an important pillar of the 
Consolidated Group's refinancing with a deposit volume of EUR 1,637.4 million as of March 31, 2021 (December 31, 2020: 
EUR 1,537.3 million). 
Publication of 2020 consolidated financial statements 
Due to the still ongoing audits by the auditing firm Mazars mandated by the German Federal Financial Supervisory 
Authority (BaFin) and the parallel audit of the annual financial statements by KPMG, GRENKE has not yet published a 
corporate calendar for 2021. The Company expects the audits to be completed and the consolidated financial statements 
to be issued with an audit opinion in the coming weeks. As a result, GRENKE intends to publish its 2020 financial year 
figures on April 30, 2021, possibly before the audit opinion is issued, and to discuss these figures at a virtual 
annual press conference and a virtual analyst conference. 
Overview of new business development (in EUR millions) 
                                             Q1 2021 Q1 2020 Change in % 
 
New Business GRENKE Group Leasing              365.8   681.3       -46.3 
- of which international                       248.4   503.1       -50.6 
- of which franchise companies**                13.1    20.0       -34.6 
- of which DACH*                               104.3   158.2       -34.1 
Western Europe (without DACH)*                  98.4   177.4       -44.5 
Southern Europe*                                83.4   196.9       -57.6 
Northern/Eastern Europe*                        57.2   120.5       -52.5 
Other regions*                                  22.4    28.3       -20.6 
New Business GRENKE Group Factoring            155.4   171.7        -9.5 
- of which Germany                              50.8    49.2         3.3 
- of which international                        18.3    38.0       -51.9 
- of which franchise companies***               86.3    84.5         2.1 
GRENKE Bank 
New business SME lending business               14.7    18.0       -18.2 
Deposit volume****                           1,637.4   976.7        67.6 
 
Contribution margin 2 (CM2) on new business 
GRENKE Group Leasing                            71.5   123.9       -42.3 
- of which international                        53.8    95.4       -43.6 
- of which franchise companies**                 2.8     4.3       -33.8 
- of which DACH*                                14.9    24.3       -38.7 
Western Europe (without DACH)*                  21.3    33.4       -36.1 
Southern Europe*                                18.0    37.3       -51.8 
Northern/Eastern Europe*                        11.8    22.8       -48.3 
Other regions*                                   5.5     6.1        -9.1 

Note: Rounding differences may occur

(MORE TO FOLLOW) Dow Jones Newswires

April 07, 2021 00:58 ET (04:58 GMT)

All news about GRENKE AG
04/07GRENKE  : substantially increases contribution margin 2 in Q1 2021 and achieves ..
PU
04/07PRESS RELEASE  : GRENKE AG: GRENKE substantially -2-
DJ
04/07PRESS RELEASE  : GRENKE AG: GRENKE substantially increases contribution margin 2..
DJ
04/07GRENKE AG : GRENKE substantially increases contribution margin 2 in Q1 2021 and ..
EQ
02/26GRENKE  : informs about exonerating statements and points of criticism of BaFin'..
PU
02/25PRESS RELEASE : GRENKE AG: GRENKE informs about -2-
DJ
02/25PRESS RELEASE  : GRENKE AG: GRENKE informs about exonerating statements and poin..
DJ
02/25GRENKE AG : GRENKE informs about exonerating statements and points of criticism ..
EQ
02/25DGAP-ADHOC  : GRENKE AG: GRENKE informs about -2-
DJ
02/25GRENKE AG : GRENKE informs about exonerating statements and points of criticism ..
EQ
More news
Financials
Sales 2020 560 M 667 M 667 M
Net income 2020 69,3 M 82,6 M 82,6 M
Net Debt 2020 5 447 M 6 488 M 6 488 M
P/E ratio 2020 23,3x
Yield 2020 1,53%
Capitalization 1 484 M 1 768 M 1 767 M
EV / Sales 2020 12,4x
EV / Sales 2021 12,1x
Nbr of Employees 1 753
Free-Float 56,1%
Chart GRENKE AG
Duration : Period :
Grenke AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GRENKE AG
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 4
Average target price 52,50 €
Last Close Price 32,85 €
Spread / Highest target 101%
Spread / Average Target 59,8%
Spread / Lowest Target 9,59%
EPS Revisions
Managers and Directors
NameTitle
Antje Leminsky Chairman-Management Board
Sebastian Hirsch Chief Financial Officer
Ernst-Moritz Lipp Chairman-Supervisory Board
Florian Schulte Member-Supervisory Board
Ljiljana Mitic Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
GRENKE AG-15.38%1 815
TOKYO CENTURY CORPORATION-10.39%8 212
BOC AVIATION LIMITED6.49%6 361
AVIC CAPITAL CO.,LTD-9.13%5 391
GATX CORPORATION13.00%3 325
FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC22.42%2 459