grenke reduces Group earnings guidance

Baden-Baden, October 29, 2024: grenke AG is experiencing higher expenses for the settlement of claims and risk provisioning and is therefore adjusting its guidance for Group earnings for the 2024 financial year. The Company now expects Group earnings in the range of EUR 68 million to EUR 76 million for the 2024 financial year (previously EUR 95 million to EUR 115 million).

The cause for the guidance adjustment is the continuously rising number of insolvencies, especially in the core markets of France, Spain, and Germany. As a result, the amount of the settlement of claims and risk provisioning has increased from EUR 26.7 million in the first quarter and EUR 28.3 million in the second quarter to EUR 37.8 million in the third quarter of the current financial year. In the fourth quarter, the settlement of claims and risk provisioning is expected to be at a similar level as in the third quarter of 2024.

The loss rate has increased from 1.1% in the first half-year to 1.5% in the third quarter of 2024. In line with the higher settlement of claims and risk provisioning, the goodwill for the Spanish subsidiary, amounting to EUR 4.4 million in the third quarter, will be written off in full.

Group earnings for the third quarter will be EUR 12.0 million due to these two extraordinary effects (compared to EUR 19.8 million in the first quarter and EUR 25.2 million in the second quarter of 2024).

The forecast for new business in the 2024 financial year of EUR 3.0 billion to EUR 3.2 billion remains unchanged.

grenke AG will soon publish preliminary figures for the third quarter of 2024 and make them available for viewing and download on the Company’s website.

grenke will be holding a conference call on October 30, 2024, at 11:00 am CET.

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