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FINANCIALS: Grenke 2Q24 New Business Figures: Positive

FINANCIALS

Grenke (GLJGR: BBB) 2Q24 new business figures out – there’s little consensus available for this but the growth figures are ahead of prior periods with a solid margin performance and positive outlook rhetoric.

  • New leasing business rose 21.5% y/y, the “contribution margin” (CM2) was flat y/y and on track for the mgmt target of 16.5%. There is no mention of arrears issues so, overall, this appears a solid set of figures.
  • By geography, DACH (Germany, Austria, Switz) were the “weakest” areas (11% growth vs. overall 21.5%) with Southern Europe leading (+25.3%). Margins improved in most geographies, with a very similar geographic trend. Denmark and Romania were called out positively (solid for Danske and the other Danish lending firms).
  • Outlook: this appears solid with mgmt pointing to a better pipeline (vs. Jun-23) and better completion run-rate and slightly better ticket sizes.

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