KRUK nets PLN 235m in profit after Q1 2023

The Management Board of KRUK S.A. has released today the Company’s financial results for the three months ended March 31st 2023. Net profit came in at PLN 235m, PLN 1m above the preliminary estimate. Recoveries from purchased debt portfolios totalled PLN 724m, up 16% year on year. Cash EBITDA was booked at PLN 530m, an increase of 18% year on year, in line with the preliminary estimate.

“We have made an excellent start into this new year, marking the 25th anniversary of KRUK. Strong recoveries from purchased portfolios bolstered our cash EBITDA to a record half a billion złoty. Importantly, this overall performance was delivered on positive contributions from all our markets,” said Piotr Krupa, CEO and President of KRUK S.A.

In the three months to March 31st 2023, the KRUK Group generated PLN 615m in total revenue, up 13% year on year. Revenue from purchased debt portfolios amounted to PLN 538m in the period, an increase of 9% year on year. Out of the PLN 524m invested by KRUK during the first three months of 2023, as much as 84% were purchases made outside of Poland, mainly on the Italian market.

“The first-quarter results we have posted demonstrate our strength, ambitions and further growth potential. Our focus is on the collection of purchased debt, primarily retail unsecured portfolios, which is why 93% of our total investments made in the first quarter were into this asset type. We are active on all markets which offer attractive investment opportunities, giving our shareholders and bondholders a chance to participate in KRUK’s successes,’ comments Piotr Krupa.

In terms of the previous year’s financial result, KRUK was one of the best performers among publicly traded companies. Compared with the largest listed industry peers, it also remains one of the least leveraged businesses (with a net debt/cash EBITDA ratio of 2.0), while also ranking among the most profitable ones (with an LTM ROE of 23%[1]).

“Our financial condition is solid, especially against competitors. We have a very good access to financing, as – in addition to drawing on bank credit – we can issue bonds in Poland as well as Nordic bonds in Europe. This gives us strength to further develop KRUK and solidify our position internationally. We consistently pursue our strategy, both in term of continued international expansion and technological transformation of the Group’s operational processes,” summarises Piotr Krupa, CEO and President of KRUK S.A.

[1] For the last twelve months