Multi-brand fintech company Eleving Group reports that it has increased its nine-month adjusted EBITDA to €53.5m and reached a record-high €17.7m in adjusted net profit. The company has provided the following operational and financial information:
In the reporting period, the Group increased its adjusted EBITDA to €53.5m or by more than 24%, compared to €43.2m a year ago, while the adjusted net profit before FX increased to €17.7m, compared to €12.1m in the respective nine-month period of 2021.
Adjusted revenue of nine-month operations has reached €136.0m, an increase of 26.8%, compared to €107.3m in the respective period a year ago. Flexible lease and subscription-based products contributed €38.2m to nine-month revenues, up 105.5% compared to the nine months of 2021 and up by 4.3% quarter on quarter. Traditional lease and leaseback products contributed €51.4m to the revenues, up 25.2% compared to the respective period a year ago and up 13.7% compared to the previous six-month period. Revenues from the consumer loan segment generated €46.4m, a slight decrease of 2.6% compared to the nine months of 2021. The company’s net portfolio showed steady growth, reaching €288.6m, an increase of €12.8m compared to the previous six-month period in 2022. The company’s vehicle and consumer segments accounted for €224.8m and €63.8m, respectively.
“At this point, we don’t see any significant signals of economic slowdown on a Group level. However, we are ready to take the right actions if potential challenges arise in the future. Aware of the new global and economic reality, we continue to take a more conservative approach to the company’s development. Our primary focus for this year is to streamline existing products in our matured markets, which continue to perform at the usual success rate in the mobility and consumer financing segments. We have tightened our underwriting policies and reviewed the cost structure to be better prepared for potential upcoming challenges. However, demand for the company’s products is still very strong, and we have achieved a q-o-q portfolio increase of almost 5%. It is lower than in previous quarters this year, but it’s our choice and decision to maintain controlled and healthy growth in times of uncertainty.”
The Group has continued diversifying its capital structure by onboarding €4m debt via private bond issuance in Kenya. Moreover, most new funding is KES denominated, thus providing a natural hedge against local currency risk.
“At the moment, we can assess that the strategic decisions regarding the diversification of the funding have been justified and yield tangible results. We are still in a relatively advantageous situation since we enjoy various funding sources such as bonds, bank loans, and borrowings from third parties that were acquired or issued when the conditions for fundraising were more favorable.”
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 €1.115 million in loans and has a net loan portfolio of over €260 million.
Some of the equity investors of Eleving Group and Mintos overlap.
