Eleving Group maintains robust profitability and a stable portfolio
Eleving Group has announced unaudited results for the first quarter ended March 31, 2023. The Group recorded a steady financial performance during the quarter, with revenues of EUR 44.7 mln, while the net portfolio reached EUR 290.3 mln.
The Group continued diversifying its business operations and maintaining a balanced revenue stream from all three core business lines. Flexible lease and subscription-based products contributed EUR 12.7 mln to Q1 2023 revenues, up by 19.5% compared to the first three months of 2022 but down by 5.0% quarter-on-quarter. Traditional lease and leaseback products contributed EUR 17.0 mln to the revenues, up by 12.4% compared to the first quarter of 2022 and up by 2.1% quarter-on-quarter. Revenues from the consumer loan segment contributed EUR 13.2 mln to the Q1 2023 revenues, down by 26.0% compared to the respective reporting period of 2022 but stable quarter-on-quarter basis.
The Group’s EBITDA in the respective period reached EUR 18.9 mln, compared to 16.4 mln a year ago, while adjusted net profit before FX amounted to EUR 7.3 mln, an increase of 1.4 mln compared to the first quarter of 2022.
“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, but at the same time, the company has maintained exceptional cost discipline. It allowed us to achieve higher efficiency ratios that align with the company’s strategy,” on the results comments Modestas Sudnius, the CEO of Eleving Group.
In the first quarter, Eleving Group rolled out its premium vehicle financing brand, Primero, in Lithuania, making the product available in all three Baltic countries. Overall, the Baltic business represents 18.3% of the Group’s total net portfolio. In terms of volumes, the Lithuanian portfolio accounts for the largest share of the Baltic countries (EUR 28.6 mln), followed by the Latvian portfolio (EUR 13.4 mln) and the Estonian portfolio with EUR 11.3 mln.
“During the first months, we continued to maintain well-diversified operations, thus reducing business-related risks. We have launched a premium car financing product in Lithuania under the Primero brand, while in Romania, we continue to digitize business operations to improve the customer onboarding process. 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 Group is exploring potential portfolio purchases or business acquisitions in the market,” Modestas Sudnius continues.
Given the stable financial performance and positive cash flow, for the very first time in the company’s history, the Group decided to return a part of its existing capital to its shareholders in the form of a dividend payout. The respective dividend payment was executed in early 2023, totaling EUR 5.1 mln. Also, Group’s 3-year Latvian bond is poised to reach maturity at the end of Q1 2024. Consequently, the Group actively evaluates various refinancing opportunities.