GRENKE Reports Strong Performance in Q1 2024 with Significant Growth in Contribution Margin

GRENKE AG, a notable financing partner for small and medium-sized enterprises, has marked the start of 2024 with impressive growth figures. In the first quarter, the company saw its new leasing business increase by 9.8% to EUR 669.8 million, up from EUR 610.2 million in the same period the previous year.

Another highlight of GRENKE AG's Q1 2024 performance is the expansion of Contribution Margin 2 (CM2), which surged by 10.4% to EUR 112.7 million compared to Q1 2023's EUR 102.0 million. This increase pushed the CM2 margin to 16.8%, aligning closely with the company's mid-term goal of around 17%. GRENKE attributes this success to its strategic handling of higher refinancing costs.

The firm also noted a rise in "green economy objects" within its leasing contracts, underscoring a growing trend toward sustainable business practices. Such eco-friendly leases, including eBikes and solar systems, comprised about 12% of new contracts in Q1 2024, a slight increase from the previous year. Alongside this green initiative, GRENKE expanded its reseller network, adding more options for its customer base.

Geographically, Western Europe (excluding DACH) emerged as the strongest region in GRENKE's portfolio, with a noteworthy 15.8% growth to EUR 187.4 million in new leasing business. The company also witnessed significant demand across its other operational regions, with varying growth rates highlighting the diverse appeal of its leasing solutions.

In addition to leasing, GRENKE reported growth in its factoring business and emphasized the importance of GRENKE Bank in its refinancing strategy. With new lending business totaling EUR 8.7 million for Q1 2024, the bank continues to play a crucial role in GRENKE's overall financial health.