Q3 2024 Grenke AG Earnings Call Transcript
Key Points
- Grenke AG (GKSGF) achieved a historic high in lease receivables, surpassing EUR 6 billion.
- The company successfully issued a EUR 500 million benchmark bond, strengthening its funding base.
- Grenke AG (GKSGF) completed a share buyback program, now owning approximately 5% of its own shares.
- The company maintained a strong CM2 margin despite economic challenges, indicating effective cost management.
- Grenke AG (GKSGF) is on track to achieve its target of over EUR 3 billion in new business for the year.
- Grenke AG (GKSGF) had to lower its earnings guidance significantly due to unexpected insolvencies in key markets.
- The company's loss rate increased to 1.5%, which is higher than initially planned for 2024.
- There was a EUR 4.4 million goodwill write-off for the Spanish subsidiary, impacting financial results.
- The equity ratio dropped to 16.1% due to the issuance of a benchmark bond, with expectations to stabilize around this level.
- The company faced challenges in risk provisioning, with an increase in non-performing receivables to EUR 521 million.
Welcome, ladies and gentlemen, and thank you for joining our Q3 2024 Earnings Call. My name is Franziska Randt. I am Head of the Strategic Division of the IR Department. And I'm very pleased to say that today here with me is CEO, Dr. Sebastian Hirsch; and our CFO, Dr. Martin Paal. We will start with the presentation and right after, we will enter into our Q&A session. [Operator Instructions]
With that having said, I would like to turn the call over to Sebastian. Please go ahead.
Thank you, Franziska. And also a warm welcome from my side. Thanks for joining us today for our earnings call. Ladies and gentlemen, as announced 2 weeks ago, the third quarter of 2024 was marked by different setting than we initially have planned at the beginning of the year. For the first time, the challenging economic situation has also materialized in our numbers. We saw an increase of insolvencies,
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