KRUK nets PLN 528m in profit after Q2 2023

The Management Board of KRUK S.A. has released today the Company’s financial results for the six months ended June 30th 2023. Net profit for the first two quarters of 2023 reached PLN 528 million, up 8% year on year. Recoveries amounted to PLN 1.5 billion, up 17% year on year. Cash EBITDA was PLN 1.1 billion, up 18% year on year.

“We are maintaining a highly positive trend in our results as we announce yet another robust performance in the second quarter. Concurrently, we have achieved an unprecedented milestone in our 25-year history, surpassing half a billion zlotys in profit after the first two quarters of the year. Recoveries remain solid, reaching a record high. Particularly important to me is the cash result – we have exceeded the threshold of PLN 1 billion in cash EBITDA for the first half of a year. This is another milestone. Furthermore, we are witnessing growth in our performance across all our markets, making positive contributions to both EBITDA and cash EBITDA," said Piotr Krupa, CEO and President of KRUK S.A.

In the six months to June 30th 2023, the KRUK Group generated PLN 1.3 billion in total revenue, up 18% year on year. Revenue from purchased debt portfolios amounted to PLN 1.2 billion in the period, an increase of 17% year on year. Out of the PLN 1.2 billion invested by KRUK during the first six months of 2023, as much as 76% were purchases made outside of Poland, mainly in the Italian market. In addition, after the reporting date, in July 2023, the Group finalised, among other things, the purchase of unsecured retail debt portfolios with a total nominal amount of PLN 3.3 billion on the Spanish market. Debt ratios remain moderate (net debt to cash EBITDA at 2.0), with high profitability (24% ROE LTM[1]).

- We are not slowing down our growth, focusing on purchased debt, primarily unsecured retail portfolios. The importance of the Italian and Spanish markets is growing for us, alongside our business in Poland. This is why our investments outside Poland have taken the forefront in recent quarters. We give priority to projects that promise higher returns. Our market position is growing, and our financial standing, especially in comparison to industry peers, remains strong. This positions us favourably to sustain our ongoing international and technological growth endeavours,” summarises Piotr Krupa, CEO and President of KRUK S.A.

[1] Last twelve months