Grenke (GLJ) Q2 2024 earnings summary

Executive summary

• Group earnings reached EUR 45.0m in H1 2024, up 11.3% year-over-year, with Q2 2024 earnings at EUR 25.2m and EPS at EUR 0.58, both up from Q2 2023.

• Leasing new business hit a record EUR 790.3m in Q2 2024, up 21.5% year-over-year, and EUR 1,460.1m in H1 2024, up 15.8% year-over-year.

• Lease receivables surpassed EUR 6bn for the first time, with total assets at EUR 7.3bn as of June 30, 2024.

• Opened a Chicago subsidiary, expanded customer base to 680k, and improved ESG ratings.

• Factoring business, held for sale, grew 11.3% in Q2 2024 to EUR 228.7m.

Financial highlights

• Interest and similar income rose 23.5% year-over-year in Q2 2024 to EUR 140.3m; net interest income up 7.6% to EUR 90.4m.

• Cost-income ratio improved to 56.3% in Q2 2024, a 3.2pp improvement year-over-year, and 57.1% for H1 2024.

• Loss rate increased to 1.2% in Q2 2024, reflecting higher SME insolvencies, but remained within the target of below 1.5%.

• Cash and cash equivalents stood at EUR 566m as of June 30, 2024.

• Cash flow from operating activities was EUR -63.3m in H1 2024, mainly due to higher investments in new lease receivables.

Outlook and guidance

• 2024 guidance reiterated: group earnings EUR 95–115m, leasing new business EUR 3.0–3.2bn, CIR below 58%, loss rate below 1.5%, and equity ratio above 16%.

• CM2 margin targeted to slightly exceed 2023’s 16.5%, with a medium-term goal of 17%.

• Mid-term targets include average leasing new business growth of 12% p.a. and CIR below 55%.