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EQS-News: Eleving Group S.A.
/ Key word(s): Interim Report
Stable portfolio while maintaining robust profitability
Operational and Strategic Highlights
“The first quarter of this year developed exactly as we had anticipated since the start of the year is always a bit slower in the mobility segment coupled with higher than usual utility bills that impacted personal spending priorities and consumption levels. Despite the challenges, we maintained the quality of the Group's portfolio, demonstrating that our strategy and business decisions can deliver high-quality results even in uncertain times. In the middle of last year, we de-emphasized our plans for significant growth and shifted our focus to business efficiency. The growth of the portfolio has indeed been slowed down, which negatively affects QOQ revenue, but at the same time, the company has maintained exceptional cost discipline and reviewed prices upwards in the majority of its car leasing product markets. All these actions allowed us to achieve higher efficiency ratios that align with the company’s strategy. In the first months of 2023, we continued to maintain well-diversified operations, thus reducing business-related risks. We have launched near-prime car financing product in Lithuania under the Primero brand, while in Romania, we continue to digitize business operations to improve the customer onboarding process and overall experience. The general operational focus in 2023 remains on further process digitization and improvements to our existing products. Despite our more conservative business approach, we still aim to reach double-digit organic growth in the net loan portfolio by the end of the year. On top of that, with strong cash and equity position and well-diversified borrowing channels, the company is exploring potential portfolio purchases or business acquisitions in the market. We also remain focused on ESG, where we continue to pursue our long-term goals. This year we have offset our entire carbon footprint in the amount of 114tCO2 arising from the operations of our headquarters in Riga and Vilnius. This was achieved through participation in carbon offsetting projects in Kenya and Ethiopia. We are also finalizing the localization of the Group's financial literacy platform, which is already integrated into product pages in nine of our countries.” Maris Kreics, CFO of Eleving Group, commented: “In the first quarter, we increased our adjusted EBITDA to EUR 18.9 mln, an increase of EUR 2.5 mln compared to the same quarter in 2022. The adjusted net profit before FX reached EUR 7.3 mln, an increase of EUR 1.4 mln compared to the respective period a year ago. The net portfolio remained stable, totaling EUR 290.3 mln. These results, during the overall challenging first months of the year, are evidence of prudent business management, proving that we are on a solid footing and well positioned for further controlled growth in the following quarters. Throughout the first quarter, we have continued to diversify the risks within our portfolio and within to minimize currency mismatches. At the end of Q1, the total amount raised equaled EUR 10.6 mln, representing an increase of EUR 3.3 mln compared to December 2022. Also, the 3-year Latvian bond is poised to reach maturity at the end of Q1 2024. Consequently, the Group actively evaluates various refinancing opportunities and anticipates disclosing further details in the forthcoming months. At the same time, we are proud that our work in investor relations has been recognized on a pan-Baltic level, with Eleving Group receiving an award for Best Investor Relations among Nasdaq Baltic First North Bond list companies in February of this year.” Full unaudited consolidated report on 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 2023 at 15:00 CET. Link to register for a conference call: https://bit.ly/3p5Yulk Eleving Group Toms Vecvagars, Investor Relations Manager Email: toms.vecvagars@eleving.com About Eleving Group Eleving Group is a global multi-brand group established in 2012, operating in vehicle and consumer financing segments. Currently, the company has 12 markets of operations across three continents. The company has a portfolio of over 500 000 clients worldwide, and the total volume of loans issued exceeds EUR 1.2 billion. In 2020 and 2021, the Financial Times ranked Eleving Group among the Top 1000 fastest-growing FinTech companies in Europe. Currently, Eleving Group has more than 2600 employees. The company's bonds are listed on Nasdaq Riga and Frankfurt Stock Exchange. In 2023, Eleving Group received 1st place in Nasdaq Baltic Awards in the category of Best Investor Relations on the First North Bond List. - 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.
12.05.2023 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: | 1631921 |
| End of News | EQS News Service |
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1631921 12.05.2023 CET/CEST
