KRUK in Q1 2018: Growth based on solid foundations

KRUK has published its Q1 2018 results:

• The KRUK Group earned PLN 90.7m in net profit, one of the best results on record. The figure represents 31% of the net profit posted for the full year 2017.
• Recoveries from purchased debt portfolios came in at PLN 362.4m, up 17% year on year, and represented 26% of total recoveries reported in the prior year.
• The KRUK Group invested PLN 125.4m in 35 debt portfolios with a total nominal value of PLN 600m. KRUK was particularly active in Poland, where it invested PLN 85m. After the end of the first quarter, KRUK announced the purchase of two bank portfolios in Poland, with a total nominal value of PLN 700m.
• At the end of Q1 2018, net debt to equity stood at 1.1x. Having the lowest debt ratios in the industry and flexible access to funding sources, KRUK remains focused on further growth and new investments. The Group is well positioned to actively consolidate Poland’s debt buying market.
• After the end of the first quarter:
  • KRUK entered into an agreement to acquire a 51% interest in Agecredit srl of Cesena, a credit management company operating in Italy;
  • The Polish Financial Supervision Authority approved the prospectus for KRUK’s V Public Bond Issue Programme. Under the Programme, KRUK may issue bonds with a total nominal value of up to PLN 500m;
  • KRUK shareholders approved the payment of a dividend of PLN 94.0m, or PLN 5 per share, in line with the Management Board’s recommendation.

Key consolidated financial results for Q1 2018

(*) Cash EBITDA = EBIT + recoveries from own portfolios - revenue from own portfolios
 

‘We made a strong start into 2018. We earned PLN 91m in net profit, which was supported by growing recoveries from debt portfolios purchased on our two key markets, Poland and Romania. We delivered a record-breaking cash EBITDA of PLN 223m thanks to high efficiency achieved in the first quarter of the year. Our ability to generate cash remains strong and our debt ratios are the lowest in the industry. This allows us to focus on further growth. We are witnessing a growing supply of debt portfolios in Poland, which, coupled with stabilisation in market competition, will allow us to invest more. We are poised to become an active buyer on the secondary market. We are also scaling up our operations in Western Europe, mainly in Spain and Italy,’ said Piotr Krupa, President of the KRUK Management Board.

See more: KRUK's Q1 2018 Presentation