PLN 252 million in net profit after Q1 2025, representing 24% of previous year’s bottom line

The Management Board of KRUK S.A. has today released KRUK’s financial results for the three months ended 31 March 2025. The KRUK Group’s net profit for the period came in at PLN 252 million, down by 26% y/y, its decline mainly attributable to a PLN 79 million y/y increase in operating expenses, partly offset by PLN 54 million y/y revenue growth. Recoveries from purchased debt portfolios reached PLN 923 million, up 8% y/y, while cash EBITDA for the three months to 31 March 2025 stood at PLN 618 million, up by 2% y/y.

“The performance we turned in for the first quarter of 2025 was largely in line with our expectations. The profit figure reflected both higher revenue and an increase in the costs of operations, mainly court fees, which went up by 45% year on year. Total recoveries exceeded the budgeted figures by 6%, having increased from previous-year levels across all our markets. I’m particularly pleased with the Spanish team’s work during the first quarter – not only with the level of recoveries they achieved, especially in February and March, but also with the operational steps taken, including more court referrals than originally planned. Both our first quarter’s cash EBITDA and net profit were affected by additional costs we had budgeted to invest throughout the year,” said Piotr Krupa, CEO and President of the KRUK S.A. Management Board.

In the three months ended 31 March 2025, the KRUK Group invested PLN 229 million in debt portfolios with an aggregate nominal value of PLN 1.1 billion. A vast majority of the investments were purchases of unsecured retail debt. The largest investments were made in Romania (33%) and Italy (32%). The ratio of net debt to cash EBITDA as at 31 March 2025 was 2.6, with the margin of 21% for the last 12 months.

"We invested in line with our plan and the scale of the debt sale market, focusing on unsecured retail portfolios. Our full-year plan remains on track, with around PLN 2.5 billion of investments targeted across all markets. With good access to financing and solid foundations in place, we are pressing ahead with the delivery of our ambitious strategy,” said Piotr Krupa.

KRUK Group’s full report for Q1 2025 https://en.kruk.eu/investor-relations/reports/interim-reports