EQS-News: Eleving Group S.A.
/ Key word(s): 9 Month figures
Operational and Strategic Highlights Profitability
Financial Highlights and Progress
Modestas Sudnius, the CEO of Eleving Group "The third quarter of 2024 marks a transformative time for Eleving Group, highlighted by our initial public offering (IPO) - the largest in Nasdaq Riga's history and a milestone for a privately held company in the Baltics. We are deeply grateful to welcome over 4,500 new shareholders, a balanced mix of institutional and retail investors from the Baltics and beyond. This IPO success has provided us with EUR 29 mln, which we will use to drive our plans to nearly double the business over the next three years. In the immediate term, we are focusing on using these proceeds to strengthen our balance sheet and optimize funding costs. Our diverse product portfolio remains a key driver of performance. Revenue from traditional loan products grew by 11.3%, driven by strong portfolio expansion in Romania and steady gains in Georgia, Moldova, and Estonia. While flexible and subscription-based products saw a controlled revenue decrease due to the anticipated slowdown in Lithuania's rent-to-buy segment and a more cautious lending strategy in Kenya's motorcycle-taxi business, Uganda's motorcycle-taxi segment maintained robust growth. Consumer lending revenues surged in Q3, fueled by rapid expansion in Sub-Saharan markets and further growth in Albania. On the business development side, our strategic approach is yielding results and promises even more growth. We made significant progress in financing electric motorcycles in Uganda and Kenya, contributing to sustainable mobility in East Africa. As we explore new market opportunities and innovative products, we remain committed to expanding accessible and eco-friendly solutions. Our electric-motorcycle financing markets are on track to meet this year's targets, with nearly 2,000 e-motorcycle units expected to be financed by year-end. Additionally, we are actively evaluating new product concepts for our mature markets and potential entries into new geographies with our established offerings. We anticipate tangible results from these initiatives in the coming year. Our digitalization journey continues to advance, enhancing client accessibility. After successfully launching a self-service platform in Romania that has significantly improved portfolio management and client relations, we localized this platform in Estonia and Lithuania. Georgia, Latvia, Moldova, and Armenia are next in line for rollout by year-end. It is worth noting that our growth to date was recognized in October by the Financial Times, which ranked Eleving Group 41st among the Fastest-Growing European Companies over the past decade. We are the highest-ranked company from the Baltics and the only Latvian company on the 'Europe's Long-Term Growth Champions 2025' list. The third quarter was another strong operational period for Eleving Group, marked by the historic milestone of our IPO. As we move forward, we aim to sustain our profitable growth trajectory as a public company focused on sustainable expansion." Maris Kreics, the CFO of Eleving Group "Our 9M results reflect continued growth and a strong operational focus. Revenue reached EUR 157.9 mln, a 17% increase compared to the first nine months of last year, and our net portfolio grew to EUR 346.2 mln, marking a 9% increase compared to the same period last year. Adjusted EBITDA rose to EUR 65.0 mln, and net profit was EUR 21.9 mln, up from EUR 19.1 mln in 9M 2023. One of our most significant milestones this year was completing the largest IPO in the Baltics, raising EUR 29 million. This capital infusion will support our mid-term goals to expand into new markets, strengthen our position in existing ones, and enhance our balance sheet. Consistent with our IPO pledge, we are committed to rewarding both new and existing shareholders with regular dividend payments. Following the IPO, we aim for a target payout ratio exceeding 50% of net profits. To strengthen our capital structure, we are strategically diversifying our debt portfolio. Following the IPO, a portion of the net proceeds will be allocated to redeem our subordinated unsecured bonds 2021/2031 (ISIN XS2427362491). This targeted move is expected to deliver nearly EUR 2 million in annual savings, directly boosting our profitability. Additionally, in Q3, we secured a EUR 4.75 million loan from Absa Bank, one of Africa's leading financial institutions, to fuel our portfolio expansion in Uganda, advancing our growth and solidifying our presence in this high-potential market. These financial achievements and strategic initiatives have reinforced our foundation for sustained growth, enabling us to drive greater operational efficiency and ensure long-term profitability." Full unaudited consolidated report on the 9M period ended on 30 September:https://eleving.com/investors/ Conference Call: A conference call in English with the Group's management team to discuss the results is scheduled for 12 November 2024 at 15:00 CET. Link to register for a conference call can be foundhere. Eleving Group Edgars Rauza, Eleving Group Investor Relations Manager Email:edgars.rauza@eleving.com About Eleving Group Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products. Currently, 55% of the group's portfolio is located in Europe, 32% in Africa, and 13% in the rest of the world. The Group's historical customer base exceeds 1.3 million customers worldwide, while the total volume of loans issued is nearing EUR 1.9 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by over 2820 employees. For two consecutive years, the Group was listed among Europe's 1000 fastest-growing companies published by the Financial Times in 2020 and 2021, while in 2024, Eleving Group was ranked as the 41st fastest-growing European company in the last decade in 'Europe's Long-Term Growth Champions 2025' research by Financial Times and Statista. Read more: www.eleving.com IMPORTANT INFORMATION The information contained herein is not for release, publication, or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa, or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the bonds in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions. This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. This announcement does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the "Prospectus Directive") and does not constitute a public offer of securities in any member state of the European Economic Area (the "EEA"). This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "Relevant Persons"). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents. PROFESSIONAL INVESTORS ONLY - Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only. 11.11.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | Eleving Group S.A. |
| 8-10 avenue de la Gare | |
| 1610 Luxembourg | |
| Luxemburg | |
| Internet: | www.eleving.com |
| ISIN: | LU2818110020, XS2393240887 |
| WKN: | A40Q8F , A3KXK8 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; SIX |
| EQS News ID: | 2026321 |
| End of News | EQS News Service |
2026321 11.11.2024 CET/CEST
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