KRUK posts PLN 757m in 9M 2023 profit

KRUK posts PLN 757m in 9M 2023 profit

The Management Board of KRUK S.A. has today released KRUK’s financial results for the nine months to September 30th 2023. Net profit came in at PLN 757m, representing a 12% increase year on year. Recoveries from purchased debt portfolios stood at PLN 2.3bn, marking a 19% year-on-year increase. Recoveries for the nine-month period and each quarter of 2023 exceeded the budgeted targets across all geographies. In the third quarter alone, KRUK achieved a positive deviation between actual and projected recoveries[i] of PLN 91m, or 13%. Cash EBITDA was PLN 1.6bn, up 19% year on year. In the nine months to September 30th 2023, the KRUK Group generated revenue totalling PLN 1.9bn, 19% more than a year earlier. Revenue from purchased debt portfolios for the period reached PLN 1.7bn, up 21% year on year.

‘I’m delighted to report that our profit for the first nine months of the year is the highest in our history, nearly matching the record full-year result posted last year. The positive trend in recoveries continues, even despite the summer holiday seasonality across our markets, primarily in Spain. We have exceeded our budgeted targets and achieved significant positive deviations in recoveries. We are working diligently in each of our markets to ensure they make a positive contribution to EBITDA and cash EBITDA,’ said Piotr Krupa, CEO and President of the Management Board of KRUK S.A.

Out of the PLN 2bn invested by KRUK during the period, a significant 82% was allocated to purchases outside of Poland, with a strong focus on the Spanish market. KRUK also made significant investments in Italy. After the reporting date, in October 2023, the Group finalised forward flow agreements for unsecured retail debt with a nominal value of up to PLN 782m, which will ensure a stream of new investments throughout 2024. Debt ratios remain moderate (net debt to cash EBITDA at 2.3), with high profitability (24% ROE LTM[ii]).

We are growing rapidly while maintaining a cautious approach. Our investments, primarily in Spain and Italy in recent quarters, reflect our ongoing commitment to improving our investment and operational excellence. We have achieved excellent results with relatively low debt and diversified access to financing, providing us with a significant competitive edge. We are entering our busiest period of the year and are actively operationalising our plans for the future, which include enhancing digitalisation and developing our organisational competencies. I’m excited about the opportunities offered by the European markets where we already have a presence. This is the right time to leverage our experience and prudently lay the groundwork for our expansion into a new country,’ noted Piotr Krupa, CEO and President of the Management Board of KRUK S.A.


[i]The item deviation between actual and projected recoveries includes the deviation of actual recoveries from budgeted figures, decreases on early collections in collateralised cases, and payments from the original creditor. The percentage deviation is determined as the ratio of deviation between actual and projected recoveries to the difference between actual recoveries and deviation between actual and projected recoveries.

[ii] Last Twelve Months

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