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EQS-News: Eleving Group S.A.
/ Key word(s): Annual Results/Annual Results
Steady growth accompanied by robust profitability
Operational and Strategic Highlights
“We started 2022 with a dosed optimism. The turbulence caused by the Covid-19 pandemic had subsided, and it appeared that we might plan for moderate and predictable growth of the global economy. However, the changing geopolitical situation in Eastern Europe and the war in Ukraine shifted the market and, consequently, the macroeconomic outlook. Despite these external factors, we experienced a strong quarter and twelve-month period, with the best financial and operational results in the Group’s history. The near-perfect results were driven by the adjusted strategy approved right after Q1. The main emphasis was put on portfolio quality and efficiency, as well as reducing the portfolio exposure in the affected markets while maintaining steady growth as a Group. This translated into a focus placed on managerial efficiency, cost optimization, careful capital management, and a slightly more conservative business approach. In Q4, we saw that consumption in some markets decreased because consumers postponed larger purchases, including buying new vehicles. Admittedly, these fluctuations were already predictable in Q2, so our timely decisions—focusing on key strategic partnerships and roll-out a fully automated “dealers’ module”—helped us maintain stable issuance volumes without sacrificing portfolio quality at a time when the overall market was shrinking. In November, we decided to simplify and optimize our hub structure and merge our Eastern Europe hub with our Caucasus hub, creating a new and larger—Eleving Europe hub. We are confident this will result in smoother management processes and reduced administrative costs throughout 2023. Also, in the ESG-related sphere, the Group achieved some significant milestones. In the past quarter, we launched the financial literacy platform for the Latvian market to educate consumers about personal budget planning and making informed financial decisions. We aim to launch it in other markets in Q1 and Q2 of 2023. Additionally, we are also proud of launching e-boda financing in Kenya. For the Group, this project contributes to fulfilling our strategic goals, where we have committed to increasing the number of emission-free vehicles in our portfolio and reducing the carbon footprint arising from it. For our clients, this project will save money on fuel and maintenance costs. For society, in the long run, it will improve the ecological aspects of the cities, such as air quality and reduced noise levels." Maris Kreics, CFO of Eleving Group, commented: “Last quarter ended the best year for Eleving Group in terms of EBITDA, revenue, net profit, and other fundamental business indicators. In 2022, the Group managed to increase the adjusted EBITDA by 29.2% compared to 2021, while the adjusted revenue reached EUR 183.8 mln, an increase of 19.5% compared to a year ago. Also, the adjusted net profit before FX increased by 47.6% in 2022, while the net portfolio ascended to EUR 288.9 mln. All things considered, we saw a slightly slower portfolio growth QOQ, but this resulted from our choice to mitigate the potential risks in times of uncertainty. We managed to diversify our portfolio across the markets and have absorbed the negative effect of war by decreasing exposure in the affected markets accordingly. Also, the diversification of the Group’s funding structure is still strong, with more opportunities for us to tap into the private debt at a local market level, especially in the African region. As seen by the figures mentioned previously, we have entered the phase that is daunting for many companies in the financial industry—the elevated interest rates period—on a solid footing due to a conservative and measured approach toward the quality of our balance sheet. In the coming quarters, we plan to continue focusing on controlled growth, improving our existing products and ensuring the quality of our portfolio. Additionally, we will be closely monitoring the developments in the financial markets, especially since our local three-year bond in Latvia is maturing during the next year.” Cost-to-income ratio footnote: 1Ratio calculated as the sum of selling and administrative expense divided by the sum of interest revenue calculated using the effective interest method, fees, and commission income, and revenue from rent. Full unaudited consolidated report on the 12M ended 31 December: https://eleving.com/investors/ Conference Call: A conference call in English with the Group's management team to discuss the results is scheduled for 16 February 2023 at 15:00 CET. Link to register for a conference call: https://bit.ly/3K3H94F Eleving Group Toms Vecvagars, Investor Relations Manager Email: toms.vecvagars@eleving.com About Eleving Group Eleving Group comprises a number of financial technology companies with a global presence. The Group operates in the vehicle and consumer finance segments on three continents, providing financial inclusion and disruptively changing financial services industries in its countries of operation. Founded in 2012 in Latvia, the Group has revolutionized how people purchase cars. Having expanded across the Baltics within its first year in business, the Group continued expanding in the following years, servicing 14 active markets. With its headquarters in Latvia, the Group operates in the Baltics, Central, Eastern, and South-Eastern Europe, Caucasus, Central Asia, and Eastern Africa. For two consecutive years since 2020, the Group earned a spot on the Financial Times list of Europe’s 1000 fastest-growing companies. - 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.
15.02.2023 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: | 1559933 |
| End of News | EQS News Service |
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1559933 15.02.2023 CET/CEST
