Half Year 2026 Kruk SA Earnings Call Transcript
Key Points
- Solid net profit of PLN555 million for H1 2026, with cash EBITDA growing 8% and recoveries up 5%.
- Assets grew 12%, indicating potential for future revenue growth from the expanded portfolio.
- Healthy indebtedness level of 2.6x, providing capacity for additional leverage if needed.
- Significant improvement in Spanish business recoveries and profitability in Q2, with plans to increase portfolio purchases.
- Strong cash flow generation with nearly PLN4 billion in cash EBITDA, and all markets were profitable.
- Net profit was flat year-over-year, missing expectations due to lower-than-planned recoveries.
- Depreciation of the Romanian lei negatively impacted revenue by approximately PLN59 million.
- Investment deployment of PLN864 million was below expectations, with market competition in Poland and Romania posing downside risk to the PLN2.5 billion target.
- Legal process results in France remain weak, with operational presence not expected until next year.
- Romanian lending business is expected to be loss-making this year due to startup and marketing costs.
(audio in progress) on the website. During my commentary, please ask questions in the question-and-answer section here in the Microsoft Teams application, and I will refer to them after I complete the commentary to the presentation. Let's start.
The six months of 2026 meant PLN555 million of net profit. A solid result. However, you see that there is no growth versus six months of last year. The growth we expect will come in the second half of this year. Cash EBITDA grew healthy by 8%.
Our recoveries grew by 5%. Our assets grew by 12%, which means there will be more revenue growth from those assets in the future. The business is indebted at similar level like last year, 2.6, a healthy level for representing still a potential to increase if we need it.
Overall, this second quarter and six months, we believe was a solid result, although, we hoped for somewhat better results. One of the reasons why these results was not better was depreciation of Romanian currency versus euro. Another reason was that
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