EQS-News: grenke achieves very profitable new business in Q1 2025

• Leasing new business grows 10.6% to EUR 740.6 million (Q1 2024: EUR 669.8 million)
• Contribution margin 2 (CM2) increases 15.6% to EUR 130.3 million
  (Q1 2024: EUR 112.7 million)
• CM2 margin expands significantly to 17.6% (Q1 2024: 16.8%)
• Agreement with buyer for the gradual takeover of the factoring business

Baden-Baden, April 3, 2025: grenke AG, a global financing partner for small and medium-sized enterprises, increased its leasing new business year-on-year in the first quarter of 2025 by 10.6% to EUR 740.6 million (Q1 2024: EUR 669.8 million). Contribution margin 2 (CM2) – as an indicator of profitability – grew by a significant 15.6% compared to the previous year to EUR 130.3 million (Q1 2024: EUR 112.7 million). As a result, the CM2 margin also grew substantially year-on-year to 17.6% (Q1 2024: 16.8%), in line with the annual target for the 2025 financial year.

Dr Sebastian Hirsch, CEO of grenke AG: “Our new business is progressing according to plan. The current figures reaffirm our focus on margins and, consequently, profitability – an approach that will benefit our future earnings. Completing the negotiations for the sale of the factoring business marks a strategically significant step, allowing us to concentrate fully on further strengthening our market leadership in international small-ticket leasing. It was also important to us that our employees in the factoring business have new compelling prospects for the future.”

Dr Martin Paal, CFO of grenke AG: “The high CM2 margin of 17.6% in Q1 2025 is an excellent foundation for our medium-term earnings growth, particularly as it already accounts for an estimation of the increased risk provisions. With Teylor AG, we have found a buyer for our factoring business who we believe has a compelling growth concept. We aim to start implementing the transaction immediately after the signing of the agreement and will closely and actively accompany the process of gradually transferring the individual local subsidiaries.”

Growth achieved across the entire portfolio

The largest category of lease objects in the first quarter, measured by the number of concluded contracts, was IT equipment, accounting for 29.3%. This category includes mainly laptops, IT equipment, and software. The share of the total leasing new business stemming from the direct sales channel in the first quarter increased year-on-year to 17.3% (Q1 2024: 15.5%), driven by the strong volume of new business in the DACH region, which typically reports a higher proportion of direct business. We also recorded around 171,000 lease applications (Q1 2024: around 160,000), resulting in approximately 76,000 new lease contracts (Q1 2024: around 72,000). As a result, the conversion rate equalled 44.5% (Q1 2024: 45.3%). The average ticket size was EUR 9,734 (Q1 2024: EUR 9,242).

Western Europe remains the strongest region

In the first quarter of 2025, the Western Europe region (without DACH) remained the strongest region, growing 7.2% to EUR 200.9 million (Q1 2024: EUR 187.4 million) and accounting for 27.1% of the leasing new business. Within this region, France, at 21.3%, accounted for the largest share of the total leasing new business. The second strongest region was Southern Europe, with a year-on-year increase of 5.7% and a leasing new business volume of EUR 176.8 million (Q1 2024: EUR 167.3 million). Italy was the leading country in this region, with a 13.9% share of the total leasing new business. The DACH region ranked third in terms of volume, with an increase of 20.6% to EUR 167.2 million (Q1 2024: EUR 138.6 million). Within this region, Germany was the largest market, accounting for 18.9% of the total new business volume.

The Northern/Eastern Europe region recorded growth of 7.4%, with a volume of EUR 145.0 million (Q1 2024: EUR 135.0 million). Other regions achieved growth of 22.5% to EUR 50.8 million (Q1 2024: EUR 41.5 million). This category includes the future markets USA, Canada, and Australia.

Growth in deposits at grenke Bank

As of the March 31, 2025 reporting date, the deposit business amounted to EUR 2,377.7 million, representing an increase of 6.6% since the end of the previous year (December 31, 2024: EUR 2,230.6 million). The lending new business of grenke Bank, which largely consists of the microcredit business, equalled EUR 11.3 million in the reporting period (Q1 2024: EUR 8.7 million).

Agreement signed for the takeover of the factoring business

grenke has entered into an agreement with the Swiss company Teylor AG for the gradual takeover of the factoring business (“Signing”). The process of transferring the individual local subsidiaries (“Closing”) is set to begin next week and is expected to be completed by mid-2026. Three of the seven subsidiaries are to be transferred in the 2025 financial year. Until the transaction is fully completed, further customary closing conditions will apply. According to the current status, effects on the grenke Group's income statement for 2025 are not expected to be significant. The factoring business held for sale recorded a new business volume of EUR 194.7 million in the first quarter of 2025 (Q1 2024: EUR 212.9 million).

An interview with our Board of Directors commenting on the new business figures for the first quarter of 2025 is available here.

This and other updates are also available on grenke AG’s LinkedIn channel.

The Quarterly Statement for Q1 2025 will be published on May 15, 2025.
 

Overview of new business development (in EUR millions)

	Q1 2025	Q1 2024	∆ in %
Leasing new business	740.6	669.8	10.6
DACH	167.2	138.6	20.6
Western Europe without DACH	200.9	187.4	7.2
Southern Europe	176.8	167.3	5.7
Northern/Eastern Europe	145.0	135.0	7.4
Other regions	50.8	41.5	22.5
Contribution margin 2 (CM2) for leasing new business
	130.3	112.7	15.6
DACH	24.2	18.8	29.0
Western Europe without DACH	36.6	33.1	10.8
Southern Europe	32.4	27.3	18.4
Northern/Eastern Europe	26.5	24.4	8.4
Other regions	10.6	9.0	16.8
CM2 margin (in %)	17.6	16.8	0.8 pp
Factoring new business1	194.7	212.9	-8.6
Lending new business2	11.3	8.7	29.0

Leasing regions: DACH: Austria, Germany, Switzerland
Western Europe without DACH: Belgium, France, Luxembourg, Netherlands
Southern Europe: Croatia, Italy, Malta, Portugal, Slovenia, Spain
Northern/Eastern Europe: Denmark, Finland, Ireland, Latvia, Norway, Sweden, UK | Czechia, Hungary, Poland, Romania, Slovakia
Other regions: Australia, Brazil, Canada, Chile, Turkey*, UAE, USA
*Leasing new business was discontinued in 2023.

¹ grenke announced its intention to sell the factoring companies on January 31, 2024. At the begin of April 2025, an agreement was reached with a buyer (“Signing”). Individual local factoring subsidiaries will be transferred to the buyer in stages (“Closing”).

²The lending business is offered through grenke Bank AG.

About grenke
grenke is a global financing partner for small and medium-sized enterprises, offering flexible, fast, and convenient small-ticket leasing and banking services. Through its offers, grenke provides customers financial leeway so they can focus on their own business. Founded in 1978 in Baden-Baden, the Group operates in more than 30 countries and employs approximately 2,200 staff (measured in terms of full-time equivalents) worldwide. grenke is a global leader in small-ticket leasing. grenke shares are listed on the Frankfurt Stock Exchange (ISIN DE000A161N30).