Eleving Group reports record performance in key business metrics in its consolidated financial report for Q1 2022. The company has provided the following operational and financial information:
Quarterly performance
In the reporting period, Eleving Group has increased its adjusted EBITDA, reaching €17.1 million compared to €13.4 million in Q1 2021, while adjusted net profit before foreign exchange has reached €5.9 million compared to €3.7 million in the respective period a year ago. Furthermore, the adjusted revenue has surpassed €45.5 million, an increase of €13.8 million compared to the first quarter of 2021, when adjusted revenue reached €31.7 million. Flexible lease and subscription-based products contributed €10.5 million to the Q1 revenue, while lease and leaseback product revenue stood at €15.2 million, and consumer lending products generated €17.8 million in revenue.
The active loan portfolio managed by the company reached a record-high €259.9 million mark, which is €14.7 million more than Q4 2021. Car financing and rental services still account for the largest share of the portfolio with €197.7 million, whereas consumer finance products amounted to €62.2 million.
“The first quarter of 2022 has been successful for the company from both an operational and a financial point of view. We managed to achieve the planned growth and profitability figures, and it testifies to the quality of our portfolio and the effectiveness of the company’s operations and chosen strategy. During Q1, we continued to demonstrate strong results across our markets and business lines. It was an exceptional quarter for our most developed markets – the Baltic States and the Caucasus and consumer finance businesses in Albania and North Macedonia. In addition, a rapid growth is still observed in Kenya and Uganda, where the company has become an indispensable partner for unbanked customers seeking mobility solutions to increase their income.”
Despite the geopolitical challenges fueled by the war in Ukraine, Eleving Group continued to implement new development projects, but at a smaller capacity. Primero product has been successfully launched in Armenia. A fleet of new cars is gradually growing in Latvia to support the development of the car subscription business, Renti Plus. A lending license has been received in Finland with plans to launch vehicle finance operations in the second quarter of 2022.
Group-level ESG strategy adopted
In the first quarter of this year, Eleving Group adopted the company’s first ESG (environmental protection, social responsibility, and governance) strategy for 2025. The implemented strategy prioritizes the promotion of financial literacy in all markets represented by the Group, the alignment of business procedures with good governance practices, the growth of employees, gender equality, and the reduction of climate impact arising from the business procedures and portfolio.
“The ESG strategy is a well-defined medium-term action plan in which we have identified key challenges and ways to overcome them. We are aware of our role in society, and we know that we need to act as leaders to set an example and promote a sustainable business environment that has a positive social and economic impact. The strategy is only the first step, and diligent work has now begun to achieve the goals set in our ESG vision.”
As part of the strategic goals, the company will increase the number of emission-free vehicles in its portfolio by 2025. In addition, it plans to develop green vehicle rental and leasing services through the represented brands and introduce car subscription and electrical car-sharing products.
Audited financial report for 2021
The audited financial report for 2021 submitted by Eleving Group in May shows that the company has been highly profitable for the 12 months of the last year. By successfully continuing its business development strategy and improving products in all the markets, the company reached €153.8 million in revenue, which is 74.2% more than 2020.
Compared to 2020, the company also observed rapid growth in its portfolio, which increased by €44.2 million, reaching €245.6 million. Meanwhile, adjusted EBITDA rose to €60.6 million compared to €34.8 million a year ago. As of 31 December 2021, the company had more than 350 000 active customers.
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 14 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. Up to date, the company has issued over €710 million in loans and has a net loan portfolio of over €250 million.
Some of the equity investors of Eleving Group and Mintos overlap.
