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EQS-News: Eleving Group S.A.
/ Key word(s): Half Year Results
Operational and Strategic Highlights
Financial Highlights and Progress
Modestas Sudnius, CEO of Eleving Group, commented: “The 6M 2023 results highlight that Eleving Group has delivered on its promises to its stakeholders and executed its strategy well, recording high efficiency and profitability ratios in the first 6 months of 2023. Over the last 12 months, the company took a more conservative approach and focused on underwriting, portfolio quality, and ensuring that the company is lean and efficient. As a result, the Group sustained a steady net loan portfolio while its key performance and efficiency indicators kept improving. In the first half of 2023, we observed that customers faced inflation-related difficulties in our EU and African markets. That had an effect on the overall payment discipline. However, this trend did not significantly impact the portfolio quality since, in the previous 12 months, the company’s core focus was on a stricter underwriting policy, higher customer down payments, and further improvement of debt collection tools. That, despite economic turbulences, allowed the company to decrease impairment costs compared to the last year. We are committed to maintaining our strategic direction unchanged, which, together with slightly increased pricing to address the changes in the cost of borrowing, should deliver strong results in the following quarters, even in more challenging economic conditions. One of the key goals which the company had for this year was to explore different growth opportunities outside our existing markets, which culminated with the integration of the ExpressCredit business into the Group's portfolio. This is a solid and mature business operating in four emerging markets in the sub-Saharan region of Africa, offering consumer financing services to government and public administration employees. In the near future, we intend to complete the alignment and integration of the business and its systems, and to optimize the administrative processes, thus increasing the quality of the services offered and the efficiency of the business itself. In the longer term, we also plan to introduce new secured products in these markets. Lastly, the sale of Renti plus, a new long-term car subscription business, is also worth mentioning. This has been a strategic and well-thought-out decision for us, the underlying motivation being portfolio efficiency. It will enable the company to focus more on developing our financial services in Latvia’s retail and SME segments.” Maris Kreics, CFO of Eleving Group, commented: “The first six months of 2023 show healthy growth in all key business figures. The Group generated revenues of EUR 90.6 mln, with a net portfolio of EUR 295.1 mln. The corresponding adjusted EBITDA for this period stood at EUR 36.1 mln, compared to EUR 30.7 mln from the previous year. Furthermore, the adjusted net profit before FX reached EUR 13.6 mln, which is an increase of EUR 4.6 mln compared to the first half of 2022. Eleving Group is currently enjoying a strong cash position, allowing us to consider new business integrations, as was the case with ExpressCredit. During the 2Q, the execution of the Group's fundraising strategy and the plans for the global capital markets in the coming months were also very much in focus. We are actively working with our partners to frame a new bond product aimed to be launched in the second half of the year. At the same time, we are continuing the work on country-level local bond issuances and other funding sources. For example, in 2Q, we raised USD 7 mln (approx. EUR 6.4 mln) from Verdant Capital Hybrid Fund. The attracted funds will be used to develop the Group's sustainability-linked products and increase our Kenyan business portfolio. At the same time, the cooperation with Verdant Capital is in line with our African FX strategy. Furthermore, we plan to double our local bond program launched a year ago in Kenya. Today, the investments attracted through this instrument are reaching EUR 13 mln. Furthermore, Fitch has rated our business at B- with a stable outlook. We have managed to keep this rating stable for the third consecutive year despite the Covid-19 setbacks, the war in Ukraine, and the shifts in the global economy. Fitch appreciated that Eleving Group had delivered on its promises to stakeholders and successfully continued its de-leveraging with an even more improved gross debt-to-tangible equity ratio (end-1Q23: 5.1x; end-2021: 7.7x). Another aspect is continuously strong profitability, mainly thanks to high-yielding products and mostly fixed-rate funding in place. Additionally, Eleving Group successfully absorbed negative impacts from its portfolio write-down in Ukraine and scale-down in Belarus, which indicates the overall quality of the Group’s portfolio and its high cash generation capabilities. The third factor highlighted by Fitch was the robust funding structure, with the largest EUR 150 mln Eurobond maturing only in 2026 and the availability of flexible capital that can be raised through Mintos marketplace, a Latvian-licensed platform for retail investing in loan products. This rating is a crucial testimony to the soundness and quality of our adopted strategy.” Full unaudited consolidated report on 6M period ended on 30 June: https://eleving.com/investors/ Conference Call: A conference call in English with the Group's management team to discuss the results is scheduled for 10 August 2023 at 16:00 CET. Link to register for a conference call can be found here. Eleving Group Arturs Cakars, Group’s Chief Corporate Affairs Officer Email: arturs.cakars@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 16 active markets. With its headquarters in Latvia, the Group operates in the Baltics, Central, Eastern, and South-Eastern Europe, Caucasus, Central Asia, Sub-Saharan and Eastern Africa. For two consecutive years since 2020, the Group has appeared 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. 1Transaction was finalized in early Q3, hence excluded from the Group’s Q2 financials. 2Transaction was finalized in early Q3, hence excluded from the Group’s Q2 financials. 3Funds were received in early Q3, hence excluded from the Group’s Q2 financials.
09.08.2023 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: | 1699031 |
| End of News | EQS News Service |
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1699031 09.08.2023 CET/CEST
