Eleving Group has announced unaudited results for Q1, 2023. The company has provided the following operational and financial information: The company recorded steady financial performance during the first quarter, with a net portfolio reaching €290.3M. The company reports they maintain robust profitability and a stable portfolio.
The company continued diversifying its business operations and maintaining a balanced revenue stream from all three core business lines. Flexible lease and subscription-based products contributed €12.7M to Q1 2023 revenues, up by 19.5% compared to the first three months of 2022, but down by 5% quarter-on-quarter. Traditional lease and leaseback products contributed €17M 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 €13.2M to the Q1 2023 revenues, down by 26% compared to the respective reporting period of 2022, but stable on a quarter-on-quarter basis.
The company’s earnings before interest, taxes, depreciation, and amortization in the respective period reached €18.9M, compared to 16.4M a year ago. The adjusted net profit before FX amounted to €7.3M, an increase of €1.4M 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,”
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, amounting to €28.6M. This is followed by the Latvian portfolio amounting to €13.4M, and the Estonian portfolio with €11.3M.
“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,”
Given the stable financial performance and positive cash flow, for the very first time in the company’s history, Eleving 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 €5.1M. Furthermore, the company’s 3-year Latvian bond is poised to reach maturity at the end of Q1 2024.
About Eleving Group
Eleving Group was founded in 2012 in Latvia and joined the Mintos marketplace in 2015, originally offering loans for investment from Latvia. Since then, it has placed loans on the marketplace from 15 countries in the Baltics and Central, Eastern, and South-Eastern Europe. Operating regions also include the Caucasus and Central Asia, as well as Eastern Africa. To date, the company has issued over €1.2 million in loans and has a net loan portfolio of almost €290 million.
Some equity investors of Eleving Group and Mintos overlap.
