DelfinGroup (DGR1R) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 40.9% to €50.4m, EBITDA increased 38.7% to €18.2m, PBT grew 14.2% to €8.29m, and net profit rose 11.2% to €6.63m.

• Loan issuance reached €92.3m; the year-end net loan portfolio grew 31.9% to €89.2m, and operations expanded into Lithuania in Q4.

Financial highlights

• Q4 revenue rose 32% YoY to €13.91m; gross profit increased 21% to €6.88m and EBITDA rose 34% to €5.14m.

• FY2023 gross profit rose 21% to €25.07m; credit loss expense increased 73% to €10.69m and interest expense rose 84% to €8.58m.

• Q4 net profit fell 23% YoY to €1.30m despite 22% PBT growth, reflecting the advance tax recognized in the quarter; excluding the tax change, Q4 net profit would have been €2.4m.

• Year-end assets totaled €105.1m, up 36.2%; interest-bearing debt increased 43% to €76.97m and cash rose 150% to €5.93m.

Outlook and guidance

• FY2023 EBITDA of €18.2m exceeded the €17m target and PBT of €8.3m exceeded the €8m target; net loan portfolio, EBITDA and PBT guidance was exceeded.

• Lithuania plans include gradually expanding the Vilnius branch network into other major cities and broadening the product range; financing will support portfolio growth, product development and branch expansion.

• AI development targets more efficient internal processes and personalized, automated product information for e-commerce.