Polish Debt Collector Kruk Sees 4% Net Profit Growth in Q1 2024
Q1 2024 Financial Performance and Strategic Updates
Net Profit and Revenue Overview
April 29 (Reuters) - Poland's leading debt management company Kruk reported a 4% rise in its first-quarter net profit on Wednesday, aided by lower operating costs and higher cash collections that outpaced rising expenditures on debt portfolios.
First-quarter net profit rose to 262.3 million zlotys ($72 million) from 251.6 million zlotys a year earlier.
Operating Profit and Revenue Changes
• Kruk's first-quarter operating profit fell to 384.5 million zlotys from 393.4 million zlotys a year earlier.
• Revenue for the same period decreased 2% year-on-year to 783.4 million zlotys.
Expenditure and Operating Costs
• In the first quarter, expenditure on debt portfolios jumped 124% on the year to 513 million zlotys.
• Operating costs excluding depreciation and amortisation decreased 3% to 379.9 million zlotys.
Cash Recoveries and Market Contributions
• Cash recoveries from purchased debt portfolios increased 5% to 971 million zlotys, with over half coming from foreign makets.
Strategic Initiatives and Market Focus
Operational and Investment Separation
• Kruk plans to separate its operational and investment activities in 2026 as a part of its 2025-2029 strategy
Investment in New Asset Classes
• The separation will allow Kruk to invest in new asset classes, with plans to spend about 200 million zlotys during its strategy period
Geographical Focus and Expansion
• "We are focused on growth in five major European markets, while at the same time completing our exit from smaller destinations", CEO Piotr Krupa said in a statement.
• Warsaw-listed Kruk buys and collects on portfolios of unpaid consumer and corporate debt, with core operations in Poland, Romania, Italy and Spain.
Additional Information
($1 = 3.6387 zlotys)
(Reporting by Julia Zmarzlik and Rafal Nowak)
