KRUK’s H1 performance elevated to new level
Today the Management Board of KRUK S.A. has published the Group’s earnings figures for the first half of 2022, which are in line with initial estimates. The KRUK Group reported a net profit of PLN 489m, up 24% year on year. Recoveries from purchased portfolios amounted to PLN 1,279m, up 20% year on year. Cash EBITDA came in at PLN 908m, an increase of 19% relative to the same period of the year before. The net profit, recoveries and cash EBITDA were the best ever half-year results posted by KRUK.
“I am extremely pleased with the results we delivered for the first half of this year, all the more so that I can boast of KRUK’s breaking new records for many consecutive quarters. An ability to share news of earnings growth, as well as dividends, with investors is a hallmark of the best listed companies,” comments Piotr Krupa, CEO and President of the KRUK S.A. Management Board. “Net profit we earned in the first six months of 2022 is already equal to 70% of our full-year result for 2021, so far a record year for us. We also posted our highest return on equity since 2011, in excess of 27%. Far from losing momentum, we are working hard to advance our digital transformation plans and digitise our services. All this makes me look forward to a very bright future for our Group. I know how much we have achieved , as can best be seen in our performance figures, but I also know how much more we want to achieve”.
In the first half of 2022, the KRUK Group generated revenue totalling PLN 1.1bn, a year-on-year increase of 23%. Revenue from purchased debt portfolios in the first six months of 2022 reached PLN 1.0bn, up 22% year on year. Its growth was driven by portfolio recoveries coming in above the target and by a positive revaluation of projected recoveries of PLN 244m, compared with PLN 135m in the first half of 2021. Positive revaluations of projected recoveries were booked on unsecured retail portfolios across all markets.
“Our results are on a steady upward trend on the back of continued efficiency improvements, an ever more prominent role of automated processes, as well as the launch of multiple debt repayment channels, including online, for our clients. Strong cash recoveries and consistent positive revaluations of the portfolio value have contributed to our year-on-year revenue growth, which will surely lead to further good news,” continues Piotr Krupa.
Of the total sum of PLN 757m invested by KRUK in the first half of 2022, as much as 82% was allocated to purchases outside of Poland, predominantly on the Spanish and Italian markets.
“Our investments in the first half of 2022 reflect the growing role of foreign markets for the Group. The international dimension of our business is gaining in importance, as our profitable diversification across geographies represents a major competitive advantage for KRUK. We have been engaged in the debt collection business for 22 years now. We have operations on seven markets, within seven different jurisdictions, but our business is united by KRUK’s shared mission: we safeguard compliance with social and legal norms requiring that everyone must fulfil their obligations, while being respectful to people,” comments Piotr Krupa. “While we have long seen a growing contribution of court enforced collections, we are also determined to professionally conduct our processes aimed to agree on amicable settlement plans. We often stay ahead of legislative changes, guided in our services by the principle of respect and treating others as we ourselves would like to be treated. KRUK is currently one of Europe’s top three companies in terms of EBITDA. It is a modern international technology-based organisation, built on a foundation of strong values. If further change is necessary, either for external reasons or because of our own development needs, KRUK will be ready to embrace it,” says Piotr Krupa, CEO of KRUK S.A.