Q3 2024 Kruk SA Earnings Call Transcript
Key Points
- Kruk SA (FRA:83I) reported a record nine-month profit of PLN959 million, indicating strong financial performance.
- The company experienced a 14% year-on-year growth in recoveries from purchased debt portfolios.
- Kruk SA (FRA:83I) maintains a moderate leverage ratio of 2.5, indicating prudent financial management.
- The company is a market leader in purchasing consumer finance unsecured portfolios in its main markets, including Poland, Spain, and Italy.
- Kruk SA (FRA:83I) successfully issued bonds to Polish retail investors, which were four times oversubscribed, reducing the margin from 4% to 3% over three months WIBOR.
- Operating costs increased by 21% year-on-year, driven by higher legal and bailiff fees.
- The company faced challenges in Spain, with recoveries below operating targets, although still above accounting forecasts.
- There is a risk of additional taxation under the GloBE Pillar Two initiative, which could affect Kruk SA (FRA:83I) from 2027.
- The supply of investment opportunities in Romania was lower than anticipated, affecting potential investments.
- Cash EBITDA in Italy is subdued due to significant investments in legal processes, impacting short-term profitability.
(audio in progress) Michal Zasepa. And then this is a meeting in which I will comment on the nine months results of Kruk Group. Thank you for your time. Thank you for your interest in listening to this commentary. I hope you can see the presentation that I'm sharing.
This presentation is available on our website. And so let me go through the highlights of what has happened of the third quarter. And during the presentation and after that, please do ask questions through the questions section here on this Teams' interface. So let's start. So I'm happy to say this is the best nine months in our history.
We have earned PLN959 million of profit, very close to the PLN1 billion net profit threshold. So it's quite likely we will have a record year in terms of net profit beating PLN1 billion, of course. This is based on very good performance of the back-book. Recoveries from that purchase grew 14% year-on-year. Cash EBITDA grew slower at 9%, reflecting the more long-term nature of the business and the fact that once
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