The Management Board of KRUK S.A. has released today the Company’s Q1 2021 results, in line with earlier estimates. The KRUK Group’s consolidated net profit for Q1 2021 came in at PLN 127m, its best ever quarterly bottom-line figure.
“This year has got off to a really good start. We are satisfied with the performance posted by the Group, especially after the exceptionally challenging year 2020. Since the conditions in which we are operating are still far from the ordinary, we are taking a cautious but positive approach both to this period’s results and to what the coming months may hold in store for us,” comments Piotr Krupa, President of the KRUK S.A. Management Board.
Total revenue amounted to PLN 383m, of which revenue from purchased portfolios reached PLN 341m, a year-on-year increase of 91% and 119%, respectively. At PLN 364m, cash EBITDA was also the highest ever quarterly result for KRUK.
“If I were to summarise the first quarter’s results only, I would highlight our investments in new debt portfolios, which reached a level above our expectations, record high recoveries, operating profit delivered across all our business lines, the strongest ever cash EBITDA and, finally, the record breaking quarterly net profit. What should be emphasized is that the generated results are based on strong, cash foundations. This is the result of hard work and many operational activities that we take to improve the efficiency of the amicable and litigation process, such as online development, improvement of analytical and scoring models, and finally continuous work on process improvement, including the work of our advisors. The pandemic is not yet over and we do not know its long-term effects, so we maintain a cautious outlook for the future,” said Piotr Krupa, President of KRUK S.A. “Considering the robust first quarter performance and our excellent financial condition, we have decided that dividend this year may amount to as much as PLN 11 per share, that is over PLN 200m in total. The highest dividend payment on record will not hinder our further business growth or new investments, but will perfectly complement the occasion of our 10th anniversary on the Warsaw Stock Exchange in May. We also remember about our bond investors, to whom we are returning with an even larger offering. Funds raised through the bond issue will mainly be applied towards investments in new debt portfolios. After the first quarter of 2021 and our solid operational work throughout the past year, we are looking for new debt purchase opportunities with greatly increased appetite. Within our industry, we stand out for a uniquely low financial leverage, with the net debt to cash EBITDA ratio at 1.5, compared with the average of 2.9*. With enough room on our balance sheet, good access to financing and operational readiness, we are actively participating in debt sale auctions on each our market,” concludes Piotr Krupa.
*Average value of the ratio calculated on the basis of data from 7 international debt collection companies