B2 Impact (B2H) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 results with 41% year-over-year EPS growth to NOK 0.37, robust collection performance at 109%, and significant ERC growth, supporting the NOK 1.5 per share dividend target for 2025.

• High investment activity with NOK 1.6 billion invested and committed for 2025, well ahead of target.

• Issued a EUR 200 million bond at a record-low 3.75% margin, enhancing financial flexibility and liquidity.

• Operating expenses and interest costs trended down, with a 24% reduction in debt cost year-over-year.

• Conservative ERC approach and focus on unsecured assets, now comprising 87% of total ERC, provide stable long-term cash flows.

Financial highlights

• Cash collections increased 6% to NOK 1,352m; cash EBITDA up 8% to NOK 975m year-over-year.

• Revenues up 2% to NOK 898m; EBIT up 4% to NOK 374m; net profit up 40% to NOK 135m.

• Cash margin improved to 66% from 64% last year; adjusted EBIT margin at 42%.

• Portfolio investments surged 207% to NOK 890m in Q1.

• Adjusted EPS rose to NOK 0.37 from NOK 0.26; ROE increased to 11% from 8%.

Outlook and guidance

• On track to deliver and potentially exceed 2025 financial targets, including NOK 1.5 EPS, NOK 1.5 dividend per share, and at least NOK 3 billion in investments.

• Investment pace ahead of target, with NOK 1.6bn already committed.

• Management expects further efficiency gains through technology and organizational changes.

• Conservative guidance maintained, with potential for outperformance if current trends continue.

• Sustainable high collection performance and low leverage ratio point to further upside in ERC and book value.