KRUK releases H1 2024 results
The KRUK Group’s net profit for the six months ended 30 June 2024 amounted to PLN 603 million, up 14% year on year, while recoveries from purchased debt portfolios reached PLN 1,738 million, up 16% year on year. At PLN 1,191 million, cash EBITDA for the period was 11% higher compared with the first half of 2023.
“I am pleased with the performance in the first half of the year, which reflects what KRUK has become after 25 years – an enduring and efficient organisation that consistently meets its objectives. Both net profit and cash EBITDA have reached all-time highs in the history of KRUK’s half-year results. In May, we shared the profits earned in 2023 with our shareholders, marking the 10th time we have done so, distributing a total of PLN 1.5 billion. My vision for KRUK is to remain a company that continues to grow while making distributions to shareholders," said Piotr Krupa, CEO and President of the Management Board of KRUK S.A. “Recoveries are strong, and the trend is continuing, with no signs of changes in consumer behaviour. Our quarterly performance was weaker in Spain, but we have analysed the situation and, as of now, we see no significant shift in the overall trend. Our business is best evaluated over the long term, and we move forward with confidence. We are also encouraging our customers to use online services, such as e-kruk, which has a steadily increasing number of users, now surpassing 300,000. Globally, 36% of settlements are already being executed by customers on a self-service basis." We are seeing the effects of the technological transformation and are planning further development in this area,” said Piotr Krupa, CEO and President of the Management Board of KRUK S.A.
Total revenue reached PLN 1,481 million, up 14% year on year. Revenue from purchased debt portfolios amounted to PLN 1,349 million during the period, marking a 16% growth compared to the first half of 2023. Of the PLN 900 million invested by KRUK in the first six months of 2024, a significant 61% was purchases made outside of Poland, mainly in the Italian market. During the period, the Group also began investing in France. Debt ratios remain moderate (net debt to cash EBITDA at 2.4), with high profitability (26% ROE LTM).
“Most of KRUK’s investments have been made outside of Poland, though our home market remains important to us. We anticipate investing a total of PLN 2.5 billion or more by the end of the year, with a primary focus on unsecured retail debt," says Piotr Krupa, CEO and President of the Management Board of KRUK S.A. “We have excellent access to financing. The banks financing us are increasing their exposure to KRUK, and we have also seen strong interest in our bonds in the capital markets, with implied spreads narrowing to around 3% in our case. At the same time, our strong cash flow reduces the need to significantly increase our debt. We are steadily strengthening our international presence across each of KRUK’s four main markets. With a capitalisation exceeding PLN 8 billion, KRUK holds a leadership position. This year is shaping up to be a promising one,” said Piotr Krupa, CEO and President of the Management Board of KRUK S.A.
For the full report for the first half of 2024, visit: https://go.kruk.eu/results
Link to the conference call: Conference Call (ENG) August 28th, 2:30 pm CEST (ENG)