|
EQS-News: Eleving Group S.A.
/ Key word(s): Interim Report
Financial Highlights and Progress
Modestas Sudnius, the CEO of the Eleving Group, comments: “In the first quarter, the Group demonstrated exceptional performance in all key financial indicators, recording historically strong profitability while also returning to higher growth levels. It comes from strong performance across all our business lines, a good-quality portfolio, and from maintaining a stable expense level. Our sales were exceptional, and we started 2024 with almost the same issuance levels as we finished last year, though, typically, Q1 is a slower quarter due to seasonality. It resulted from the successful integration of Sub-Saharan business obtained in the previous year, from unlocking additional market opportunities and weakened competition in markets like Romania, Armenia, and Kenya. We see that our strategy of stricter underwriting and cost-efficient management, applied over the last few years, has paid off, and now we can return to more accelerated growth without sacrificing the quality of the portfolio. A short while ago, we publicly announced that we are assessing external equity-raising to finance future growth. As a result, we have mandated LHV Pank to advise us on external equity-raising opportunities in the Baltics and Europe. We do not rule out an IPO as one of the routes Eleving Group could take. With a successful external equity raise, we can expect to open new markets and expand our product offer in the short- to mid-term. We plan to grow our portfolio further, strengthen our capital structure, and continue diversifying our debt stack with deals closed in Q1 2024. Also, the ESG angle will remain among our priorities with active investments in supporting green mobility products across our markets and strengthening our corporate governance structure – introducing a supervisory board and announcing dividend policy in upcoming months. All of that will further enhance the transparency and fundability of the company. It is worth noting that we have finalized the exit from Belarus and now have sizeable capital deployed only in operational markers, which we are eager to develop further. This, together with recently significantly decreased exposure to volatile currencies through raising debt in local currency or entering into currency hedge solutions, also decreases the Group’s exposure to outside factors, and reduces business risk as we advance. Overall, the first chapter of the year has started on a very positive note, and we look forward to the rest of the year. The main goals of this year are to i) continue prudent organic growth, but at a higher level compared to previous periods; ii) prepare for the launch of new products and markets in 2024; iii) focus on raising outside equity to support further growth and strengthen the company while still maintaining a solid profitability and equity return ratios.” Maris Kreics, the CFO of the Eleving Group, comments: “This has been another robust quarter for our global business, delivering near-outstanding results in all key business metrics. The Group generated revenues of EUR 51.8 mln, up by 20% compared to the respective period a year ago, and a net portfolio of EUR 330.5 mln, which is a 19% increase compared to 1Q 2023. The corresponding adjusted EBITDA for this period reached EUR 22.0 mln, compared to EUR 17.8 mln in the corresponding period last year. Furthermore, the net profit before FX reached EUR 7.8 mln, an increase of around 15% compared to the three-month period of 2023. During the first quarter, the negative impact of foreign currency exchange we saw in the previous two quarters decreased, and our hedging solutions played a fundamental role in this. On top of that, borrowing in local currency has been part of our fundraising strategy for some time and further helps reduce the respective foreign currency exchange risks. We achieved tangible results in this area in Namibia and Botswana, by raising more than EUR 5.5 million for portfolio growth in both countries combined. Meanwhile, in cooperation with ACP Credit, we attracted significant external debt partner for the first time since we started the operations in Romania, resulting in a EUR 10 million investment for Mogo Romania. In the future, one of our main challenges will remain to continue diversifying our debt profile by exploring new funding channels and formats. Within the Mintos marketplace, we have successfully lowered the weighted average annual funding to approximately 9.5%. This reduction in interest expenses will help to enhance the Group's profitability. Also, on 31 March, we met the maturity of Mogo AS 2021/2024 bonds (ISIN LV0000802452). As a result, the Group’s subsidiary in Latvia—Mogo AS—successfully repaid to the bondholders a total of EUR 17.2 mln that was not previously exchanged into the Eleving Group 2023/2028 senior secured and guaranteed bonds (ISIN DE000A3LL7M4) issued last October. The recent results show that the Group holds a strong position and a healthy balance sheet, which are the fundamentals for successfully tapping capital market opportunities and solid business performance in the long run.” Full unaudited consolidated report on the 3M period ended on 31 March: https://eleving.com/investors/ Conference Call: A conference call in English with the Group's management team to discuss the results is scheduled for 15 May 2024 at 15:00 CET. Link to register for a conference call can be found here. Eleving Group Edgars Rauza, Eleving Group Investor Relations Manager Email: edgars.rauza@eleving.com About Eleving Group Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products, with Kredo and Tigo as the segment’s flagship brands. Currently, 57% of the group's portfolio is located in Europe, 30% in Africa, and 13% in the rest of the world. The Group's historical customer base exceeds 660,000 customers worldwide, while the total volume of loans issued goes beyond EUR 1.7 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by 2718 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies published by the Financial Times in 2020 and 2021. IMPORTANT INFORMATION The information contained herein is not for release, publication, or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa, or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the bonds in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions. This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. This announcement does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the "Prospectus Directive") and does not constitute a public offer of securities in any member state of the European Economic Area (the "EEA"). This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "Relevant Persons"). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents. PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.
13.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | Eleving Group S.A. |
| 8-10 avenue de la Gare | |
| 1610 Luxembourg | |
| Luxemburg | |
| Internet: | www.eleving.com |
| ISIN: | XS2393240887 |
| WKN: | A3KXK8 |
| Listed: | Regulated Unofficial Market in Dusseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; SIX |
| EQS News ID: | 1900905 |
| End of News | EQS News Service |
|
|
1900905 13.05.2024 CET/CEST
