KRUK Spólka Akcyjna (KRU) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 net profit of 603 million PLN, up 14% year-over-year, with strong growth in recoveries and cash EBITDA.

• International expansion continued, with over 60% of investments and recoveries outside Poland.

• Paid a dividend of 18 PLN per share in Q2/May 2024, with total historical dividends reaching 1.5 billion PLN.

• Recognized as the world's largest debt collection company by market capitalization as of June 2024.

• Received multiple awards for investor relations, ESG, and technological innovation.

Financial highlights

• Revenue for H1 2024: PLN 1,481m (+14% y/y); cash EBITDA: PLN 1,191m (+11% y/y); EPS: PLN 31.20 (+14% y/y).

• Operating expenses increased 20% year-over-year, mainly due to higher legal, court, and service fees.

• Recoveries from purchased portfolios: PLN 1,738m (+16% y/y); investments in debt portfolios: PLN 900m (-24% y/y).

• Portfolio carrying amount: PLN 9.1bn (+24% y/y); equity: PLN 4.1bn (+19% y/y); assets: PLN 10.2bn (+22% y/y).

• Financial costs increased due to higher funding needs and interest rates, but access to debt remains strong.

Outlook and guidance

• On track for another record year in net profit for 2024, with continued focus on international expansion and digital transformation.

• Targeting 2.5 billion PLN in new portfolio investments for the year, with 900 million PLN invested in H1.

• Ongoing investments in technology and self-service platforms to drive operational efficiency.

• No significant weaknesses observed in July and early August; positive trends in key markets.

• New four-year strategy to be communicated by year-end, focusing on technology transformation and doubling business scale.