grenke achieves strong Q3 new business growth

grenke AG has announced an increase in its leasing new business for the third quarter of 2024, achieving a growth rate of 24.9% year-on-year. The company reported a total of €738.5 million in new leasing contracts for Q3 2024, compared to €591.1 million in the same quarter of the previous year.

The strong performance was further underscored by a significant increase in Contribution Margin 2 (CM2), a critical metric indicating the profitability of new business. CM2 surged by 29.1% year-on-year, reaching €125.8 million, up from €97.4 million in Q3 2023. The CM2 margin improved to 17.0%, surpassing last year’s 16.5% and aligning with the company’s medium-term guidance.

“The very robust third quarter was another milestone following a strong first half-year. Recent interest rate cuts by central banks are likely to stimulate new investment, including among small and medium-sized enterprises. The first indication of this is the increasing number of lease applications we are currently receiving for small-ticket financing.”

The company’s financial strategy was bolstered by the successful placement of its third bond at the end of September, with a volume of €500 million. Dr. Martin Paal, CFO of Grenke AG, noted that this bond, with a favourable coupon of 5.125%, will enhance the company’s refinancing conditions, further supporting its growth ambitions.

grenke AG continues to emphasize its commitment to the green economy, with leasing objects in this category making a significant contribution to new business. In Q3 2024, over 21.0% of lease contracts fell into the green economy category, driven primarily by eBikes, water treatment systems, and solar systems.

The company also expanded its international sales network, now comprising over 38,000 resellers, an increase from 35,300 in Q3 2023. The share of direct customer business in total leasing new business saw a slight increase to 17.7%, compared to 17.5% in the same quarter last year.

The DACH region (Germany, Austria, and Switzerland) led the way in growth, achieving a 19.5% increase year-on-year, totalling €189.3 million and accounting for 25.6% of total leasing new business. Germany alone contributed 20.9% of the total. Western Europe, excluding DACH, reported a 17.8% increase to €175.7 million, with France being the top contributor in this region at 18.1%. Southern Europe saw a notable growth rate of 32.7%, primarily fuelled by Italy, which represented over half of the leasing new business in that region.

Demand for leasing solutions to finance investments and optimise liquidity remains strong internationally. grenke’s leasing solutions remain in high demand, with around 146,000 lease applications received in Q3 2024, up from approximately 130,000 in the same quarter last year. The company signed around 76,000 new lease contracts, compared to 68,000 in Q3 2023, maintaining a stable conversion rate of 52.2%.

In addition to leasing, grenke’s factoring business recorded an increase of 11.2% in the third quarter, amounting to a new business volume of €234.2 million.