DGAP-News: GRENKE AG
/ Key word(s): Capital Markets Day
Capital Markets Update: GRENKE presents growth strategy
- "The Next Dimension – Small Tickets, Smart Leasing"
- Expansion of international sales and object portfolio
- Focused on profitable growth, supported by increased digitalisation and cost efficiency
- CEO Michael Bücker: "GRENKE is back as the global market leader in small-ticket leasing – we are evolving alongside our customers' requirements and economic megatrends".
- CFO Dr Sebastian Hirsch: "We have proven our resilience against inflation, the pandemic and other crises – all indicators are now pointing towards growth".
Baden-Baden/Frankfurt, May 13, 2022. At its first Capital Markets Update today in Frankfurt, GRENKE AG will outline its strategy to investors and debt holders for doubling new business and net profit by 2024 compared to the previous financial year, excluding extraordinary effects. GRENKE is specifically striving for leasing new business of around EUR 3.4 billion and net profit of approximately EUR 140 million in 2024. This is to be achieved by strengthening international sales in the more than 30 countries where GRENKE operates. The Company also plans to expand its portfolio of lease objects. In order to maintain its traditionally high level of profitability while achieving its ambitious growth targets, the Company will rely on an even greater digitalisation of its processes and cost efficiency, which have already proven their worth over the past several years and decades.
CEO Michael Bücker: "GRENKE is back as the global market leader in small-ticket leasing – we are evolving alongside our customers' requirements and economic megatrends, particularly greater digitalisation and combating climate change. We finance almost all economic goods needed by small and medium-sized enterprises, from laptops and telephone systems, 3D printers, and e-bikes to medical equipment for amounts up to approximately EUR 25,000. Leasing, especially small-ticket leasing, will also make a significant contribution to financing the green transformation. This growing spectrum means tremendous opportunities for us, with the ability to broadly spread our risk at the same time. The average ticket size of a contract is approximately EUR 9,000 – no one in the world masters this internationally growing small-ticket business as well as GRENKE. We want to extend this leadership further. Among other things, through the consistent digitalisation of our internal processes.
CFO Dr Sebastian Hirsch: "We have proven our resilience against inflation, the pandemic and other crises. GRENKE has passed the trough caused by the corona pandemic, and we are now registering an upswing in all markets. We are focusing on efficiency and consolidation in the countries where we have longstanding operations and have secured strong market shares. These countries will generate most of the targeted doubling of new business and net profit by 2024. These include, above all, our European core countries of Germany, France, Italy and England. We also see potential in markets we have only just entered, including the USA, the largest leasing market in the world. All indicators combined point to double-digit growth in leasing new business and net profit."
Under the motto, "The Next Dimension – Small Tickets, Smart Leasing", both GRENKE Board of Directors' members emphasise the Company's proven track record of more than 40 years of success as it continues its growth trajectory. Since its IPO in the year 2000, GRENKE has achieved an average growth rate in leasing new business of around 11 percent, year after year. New lease contracts have also grown each year by around 11 percent, and the pre-pandemic annual growth in net profit equaled approximately 9 percent. One of the most important assets of the Baden-Baden-based leasing group is its global network of around 30,000 specialist resellers who broker GRENKE leasing contracts to self-employed individuals and small and medium-sized enterprises. And this number is growing.
GRENKE currently has approximately 700,000 customers. GRENKE BANK loans to small and medium-sized enterprises in co-operation with the German government.
GRENKE's future prospects are shaped by three factors: its unique market position, the sustainable growth of leasing as an alternative financing instrument, and the expansion of its global footprint as a small-ticket specialist.
The Company will present more information on its strategy at today's Capital Markets Update, broadcast live in English on the Company's website, starting at 10:30 a.m. (CEST).
Please use the following link to participate: https://slidesync.com/n5kKOjrkxY
For more information, please contact:
The GRENKE Group (GRENKE) is a global financing partner for small and medium-sized enterprises. 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 Baden-Baden in 1978, the Group today has over 1,800 employees (measured in full-time equivalents) in 33 countries worldwide. GRENKE shares are listed on the Frankfurt Stock Exchange (ISIN: DE000A161N30).
13.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Neuer Markt 2|
|Phone:||+49 (0)7221 50 07-204|
|Fax:||+49 (0)7221 50 07-4218|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1351647|
|End of News||DGAP News Service|