DelfinGroup reports 40% profit increase in 2022

DelfinGroup reports that the company increased its profits by 40% in 2022, reaching €7.3 million, while income amounted to €35.1 million according to the company’s unaudited financial results for 2022. The company further shares that its loan portfolio increased by 54% to €67.4 million, while EBITDA increased to €13.1 million, a 29% growth compared to 2021. The company has provided the following operational and financial information:

Chairman of the Management Board of the Company Didzis Ādmīdiņš is positive about the results. He notes that the growth in 2022 was facilitated by the company’s strengthened market positions in the main business segments, the demand for simple and customer-oriented financial services, as well as the ability to adapt to the challenges of the global economy.

"Although the previous year began with a gradual easing of pandemic restrictions, which allowed us to look optimistically into the future, the complex geopolitical situation created new challenges and uncertainty for the global economy. For the company, this meant adapting to the new situation by continuing to invest in and develop each of its business segments – consumer loans, pawn loans, and the sale of pre-owned and new goods. However, I must admit that we have successfully continued the company's development even in uncertain conditions, and the objective economic turmoil will strengthen it in the long term. Without a doubt, this would not be possible without the DelfinGroup team."

Didzis Ādmīdiņš, Chairman of the Management Board

In 2022, DelfinGroup issued loans for €80.3 million, an increase of 62% compared to 2021, while the sales volume of goods increased by 27% to €11.4 million. According to the latest publicly available data, in the first half of 2022, both in consumer loans and the pawnshop segment, DelfinGroup market share increased. The data for the second half of last year has yet to be published, but according to the company’s forecasts, the market share growth trend will continue during this period.

"The results indicate that our strategy of developing versatile financial solutions is right. Therefore, this year we will continue to focus on developing the circular economy concept and the sale of pre-owned goods. In addition, we will continue to modernise Banknote circular economy stores, which currently consist of more than 90 branches, providing financial services throughout Latvia."

Didzis Ādmīdiņš, Chairman of the Management Board

In addition to developing in-person stores, the company’s constant priority is to sell pre-owned and new goods online. Customers are offered a guarantee on the goods they buy, convenient delivery, and a wide selection of product categories. The development of this area is also closely linked to the company’s targeted investment in digitalisation.

"In each of our business segments, we are also focusing on digital solutions, which will remain a consistent approach for the company. Last year, for example, investments in digital solutions amounted to more than €100 000, while in sales, our focus is on promoting and raising awareness of the circular economy. We need to work together to reduce CO2 emissions, and buying pre-owned and tested goods is one very simple way. If we want to keep having beautiful and snowy winters, we must act! The services offered by Banknote online store and in-person branches developed by DelfinGroup are a step towards a greener lifestyle."

Didzis Ādmīdiņš, Chairman of the Management Board

Last year, DelfinGroup made six dividend payments for more than €5 million or €0.1197 per share, which provides the company’s shareholders with a dividend yield of 8.1% based on the share price on 30 December 2022. In addition, while the Nasdaq Baltic Benchmark Index declined by 11.75% last year, DelfinGroup share price rose by 5.86%.

"We are pleased that the company’s competitiveness on the capital market provides investors with a good yield and maintains good growth potential, which is also confirmed by analysts’ assessments."

Didzis Ādmīdiņš, Chairman of the Management Board

Didzis Ādmīdiņš adds that the company’s rapid growth has been driven by ambitious financial targets, which have led to good results for the sector; however, considering the global economic situation and the rising cost of funding, DelfinGroup has renewed its financial targets for the coming years, with an updated version published on 28 February.

In addition to business development, DelfinGroup continued its social initiatives last year, including providing support to seniors to improve their quality of life and conditions, as well as offering support to the people of Ukraine. Since the start of the war, the company has donated a total of €250 000 to the Children’s Hospital Foundation, the Entrepreneurs for Peace Foundation and the Association TEV, and is calling on other companies to support these foundations and the association.

About DelfinGroup

DelfinGroup is a licensed fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, buy now pay later (BNPL) loans, and the sale of pre-owned goods online and at more than 90 branches across Latvia. On average, 35 thousand loans are issued monthly and serviced by a professional team of more than 300 DelfinGroup employees. The company has a total of over 400 000 registered customers. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company’s IPO in 2021 attracted almost 6000 new shareholders. The company regularly pays dividends to its shareholders. In 2022, the company’s net loan portfolio grew to €67.4 million, while its EBITDA reached €13.1 million, with profit before taxes of €7.3 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy. The company has been profitable every year since 2010.

Starting from 06.05.2021 there have been changes in the ownership structure and some equity investors overlap with Mintos.


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