KRUK's net profit rose by 12% in 2018

KRUK S.A. published FY 2018 results:

• In 2018, the KRUK Group reported net profit of PLN 330m, which represents an increase of 12% on 2017 and the Group’s best result on record. In Q4 2018, net profit was PLN 51m.
• Recoveries from purchased debt portfolios reached a record-breaking level of PLN 1.6bn, up 15% on 2017. The highest recoveries in 2018 were reported in Poland (PLN 768m/49%) and Romania (PLN 528m/33%). At PLN 126m, recoveries made on the Italian market accounted for 8% of the total recoveries. The other markets generated PLN 156m in recoveries (10% share). In Q4 alone, recoveries came in at PLN 433m, the highest figure on record for KRUK.
• In 2018, the Group invested a total of PLN 1,395m in debt portfolios with a nominal value of PLN 8.9bn, compared with PLN 977m and PLN 16.4bn in 2017, respectively. Throughout 2018, KRUK made the largest investments in Poland (45%), Spain (22%), Italy (19%), and Romania (11%). In Q4, investments amounted to PLN 340m, for which KRUK acquired portfolios with a nominal value of PLN 2.6bn. The largest investments were made in Spain and in Poland.
• In 2018, KRUK increased the total value of credit facilities to PLN 2.0bn at the end of 2018, issued two series of bonds with a total value of PLN 65m and redeemed five series of bonds totalling PLN 115m. KRUK is working to increase the available credit facilities. In February 2019, KRUK issued another series of bonds offered to retail investors, worth PLN 25m.
• KRUK conducted the revision of the strategic options in 2018 and announced a new strategy for 2019-2024. KRUK plans further development in order to achieve PLN 700m of net profit in 2024, maintaining a conservative level of leverage and ability to pay dividends
• KRUK maintains a conservative approach to debt – the net debt to cash EBITDA ratio at the end of 2018 was 2.3x

Selected financial figures for 2018

(*) Cash EBITDA = EBIT + cash recoveries – revenue from purchased portfolios

- The numbers speak for themselves – PLN 1.6bn of recoveries, over PLN 1.0bn of cash EBITDA, PLN 330m of net profit – it was a good year – the year of our 20th anniversary. It was a perfect moment to set new goals for the company which has been constantly growing in the past 20 years and now employs over three thousand employees. We established a new plan for further growth to achieve PLN 700m of net profit in 2024, maintaining a conservative level of indebtedness and possibility to pay dividends. My perspective for KRUK is even longer and I know that the next 20 years for KRUK will be even more successful – especially because of this wonderful team I manage. New challenges ahead in near future are: strengthening our leading position in Poland and Romania, achieving full operational efficiency in Italy and Spain, further development of our access to funding – mówi Piotr Krupa, prezes KRUK S.A.