KRUK S.A.

KRUK S.A. Reports Mixed Financial Performance in Q1 2025 Amid Rising Costs and Lower Net Profit

KRUK S.A., a leading European debt management company, has released its financial results for the first quarter of 2025, reporting a mixed performance. The Group's net profit for the period amounted to PLN 251.7 million, marking a 26% year-on-year decline compared to PLN 338.2 million in Q1 2024. This decrease was attributed to rising operational costs, particularly legal expenses, and higher finance costs due to increased debt levels.

Despite the decline in net profit, KRUK S.A. achieved a 7% increase in total revenue, reaching PLN 802.2 million. Revenue from purchased debt portfolios rose by 4% to PLN 715 million, driven by strong performance in Italy, Poland, and Romania. Cash recoveries from debt portfolios also grew by 8% year-on-year to PLN 923.4 million, with significant contributions from the Italian and Polish markets.

Operational costs, excluding depreciation and amortization, surged by 25% year-on-year to PLN 393.1 million, primarily due to higher legal expenses. Meanwhile, net finance costs increased by PLN 20.2 million year-on-year to PLN 112.7 million, reflecting the impact of a PLN 1 billion rise in debt. The Group's cash EBITDA improved slightly, growing by 2% year-on-year to PLN 617.6 million.

KRUK S.A. invested PLN 228.8 million in new debt portfolios during the quarter, a 32% decrease compared to the same period last year. The company also redeemed Series AL2 and AE4 bonds, totaling PLN 167.5 million, and issued new Series AP3 bonds worth PLN 100 million, maturing in 2031.

The company reaffirmed its commitment to its dividend policy, which aims to distribute at least 30% of its consolidated net profit to shareholders, provided the net debt-to-cash EBITDA ratio remains at or below 3.0.

Relevance to KRUK S.A. Business Profile

This article is relevant to KRUK S.A.'s business profile as it highlights the company's financial performance, investment in debt portfolios, and operational challenges, which are central to its role as a leading debt management and consumer lending company in Europe.

KRUK S.A. Reports Solid Financial Performance in H1 2025 Amid Mixed Market Dynamics

KRUK S.A., one of Europe’s leading debt management companies, has announced its financial results for the first half of 2025, showcasing a net profit of PLN 584 million, a slight decline of 3% year-on-year. The Group’s revenue grew by 8% year-on-year to PLN 1.6 billion, driven by a 7% increase in revenue from purchased debt portfolios, which reached PLN 1.446 billion. Cash EBITDA rose by 9% year-on-year to PLN 1.3 billion, while the return on equity (ROE) stood at 22%.

Despite the overall positive performance, KRUK faced a 10% year-on-year decline in investments in new debt portfolios, amounting to PLN 805 million. The largest investments were made in Poland (PLN 368 million) and Italy (PLN 194 million), primarily in unsecured retail debt portfolios. Recoveries from purchased portfolios increased by 10% year-on-year to PLN 1.91 billion, with foreign markets contributing 59% of total recoveries. Italy and Poland were key growth drivers, with recoveries increasing by PLN 72 million and PLN 42 million, respectively.

Operating expenses rose by 13% year-on-year to PLN 764 million, attributed to higher salaries, service costs, and court fees. However, the Group managed to maintain a robust financial position, with equity accounting for 39% of its financing sources and a net debt-to-equity ratio of 1.3x, well below the maximum contractual level of 3.0x. The carrying amount of the Group’s debt portfolios reached PLN 10.8 billion, representing 89% of its total assets.

Geographically, Poland accounted for 41% of total recoveries, followed by Italy (23%), Romania (18%), and Spain (14%). In Poland, recoveries grew by 6% year-on-year to PLN 776 million, while in Italy, recoveries surged by 19% year-on-year to PLN 445 million. Romania and Spain also saw recoveries increase by 2% and 11%, respectively. The Group’s operations in other markets, including France, the Czech Republic, Slovakia, and Germany, contributed 4% of total recoveries.

KRUK’s consumer lending business, led by Wonga.pl and Novum, also performed well. Wonga disbursed 141,000 cash loans in Poland, with a net value of PLN 384 million, while its revenue grew by 21% year-on-year to PLN 98 million. Novum disbursed 11,000 loans, with a net value of PLN 74 million, and reported a 17% year-on-year increase in revenue to PLN 16 million.

On the ESG front, KRUK made significant strides, with women representing 65% of its workforce and 42% of corporate board positions. The company also relocated its headquarters in Poland to a more sustainable building and implemented robust compliance and cybersecurity training programs.

Relevance to KRUK S.A.: This article highlights KRUK S.A.'s financial and operational performance, aligning with its core business model of debt portfolio management, credit services, and consumer lending. It underscores the company's resilience and strategic focus on geographical diversification and ESG initiatives.

KRUK S.A. Reports Solid Financial Performance for Q3 2025 Amid Rising Costs

Wrocław, Poland – October 28, 2025: KRUK S.A., a leading European debt management company, has reported a net profit of PLN 877.2 million for the nine months ended September 30, 2025, reflecting a 9% year-on-year decline compared to PLN 959.1 million in the same period of 2024. Despite the drop in net profit, the company achieved a 13% increase in Cash EBITDA, reaching PLN 2 billion, driven by strong recoveries and stable revenue growth.

Key Financial Highlights:

• Revenue: Total revenue rose by 3% year-on-year to PLN 2.4 billion, with purchased debt portfolios contributing PLN 2.18 billion. The Italian market led growth with a 21% increase in revenue, followed by a 5% rise in Spain.
• Recoveries: KRUK achieved record recoveries of PLN 2.92 billion, a 12% increase year-on-year, with significant contributions from Italy (+31%) and Poland (+7%).
• Costs: Operational costs, excluding depreciation and amortization, increased by 10% year-on-year to PLN 1.14 billion, primarily due to higher legal expenses, salaries, and IT service costs linked to the company's ongoing digital transformation.
• Debt Portfolio Investments: KRUK invested PLN 1.43 billion in new debt portfolios, a 13% decline from the previous year.
• Finance Costs: Net finance costs rose by PLN 38.6 million year-on-year to PLN 327.9 million, attributed to a PLN 1.2 billion increase in debt.

Dividend Distribution: KRUK S.A. distributed a dividend of PLN 18.00 per share, totaling PLN 349.3 million, in line with its dividend policy. The company also adopted a new dividend policy for 2025–2029, aiming to distribute at least 30% of its consolidated net profit annually, provided the net debt-to-cash EBITDA ratio remains at or below 3.0.

Bond Issuance and Redemption: KRUK redeemed bonds worth PLN 242.5 million and issued new bonds totaling PLN 600 million during the reporting period. The company also established a new bond issuance program with a total nominal value of up to PLN 900 million.

Outlook: KRUK S.A. continues to focus on sustainable growth, leveraging its expertise in debt management, credit services, and consumer lending across its key markets in Poland, Romania, Italy, Spain, and other European countries.

Relevance to KRUK S.A.: The article highlights KRUK S.A.'s financial performance, operational strategies, and market expansion, aligning with its core business model of debt portfolio management, credit services, and consumer lending across Europe.

KRUK S.A. Reports Record Financial Performance in 2025 Amid Strategic Growth and Expansion

KRUK S.A., a leading European debt management company, has announced its consolidated financial results for the fiscal year ending December 31, 2025. The company achieved a record net profit of PLN 1,085.6 million, a slight increase from PLN 1,074.3 million in 2024. Operating profit rose to PLN 1,577.8 million, reflecting a 12% year-on-year growth. Total revenue reached PLN 3,190.7 million, driven by robust performance in purchased debt portfolios, which contributed PLN 2,898.2 million, a 10% increase from the previous year. EBITDA also saw a significant rise, reaching PLN 1,643.2 million, up from PLN 1,474.9 million in 2024.

The company invested PLN 2.2 billion in new debt portfolios, with the carrying amount of investments in debt portfolios increasing to PLN 11.63 billion, up from PLN 10.5 billion in 2024. Cash recoveries from debt portfolios also grew to PLN 3.92 billion, compared to PLN 3.54 billion in the previous year. KRUK S.A. maintained a strong financial position, with a debt-to-equity ratio of 1.36, down from 1.46 in 2024, and a return on equity of 25.58%.

Additionally, KRUK S.A. continued its digital transformation and operational efficiency initiatives, as reflected in increased IT and administrative support expenses. The company also expanded its hedging activities to mitigate interest rate and currency risks, with open IRS and CIRS contracts totaling EUR 432.5 million and PLN 2.43 billion, respectively.

KRUK S.A. announced plans to restructure its operational and investment frameworks, including the establishment of special purpose vehicles and the potential transition to an alternative investment company (AIC) structure. These changes aim to enhance the company's ability to implement its 2025–2029 strategy effectively.

Relevance to KRUK S.A. Business Profile

This article highlights KRUK S.A.'s financial performance, strategic investments, and operational initiatives, which align with its core business of managing and recovering non-performing loans (NPLs) across Europe.

KRUK S.A. Reports Solid Q1 2026 Financial Performance Amid Increased Debt Portfolio Investments

KRUK S.A., a leading European debt management company, has reported a net profit of PLN 262.5 million for the first quarter of 2026, marking a 4% year-on-year increase compared to the same period in 2025. The company’s revenue for the quarter stood at PLN 783.4 million, a slight decline of 2% compared to the previous year. Revenue from purchased debt portfolios reached PLN 718.5 million, a modest 0.5% increase year-on-year, with Italy showing the highest growth of 11% in this segment.

KRUK S.A. achieved cash EBITDA of PLN 656.2 million, reflecting a 6% year-on-year improvement. The company also reported a significant increase in recoveries from purchased debt portfolios, which totaled PLN 971.2 million, up 5% year-on-year. This growth was primarily driven by strong performance in the Italian and Romanian markets, which saw recoveries increase by 10% and 12%, respectively.

Operating expenses, excluding depreciation and amortization, decreased by 3% year-on-year to PLN 379.9 million, largely due to reduced legal expenses. However, net finance costs rose slightly by 1% to PLN 113.6 million. KRUK S.A. also made substantial investments in new debt portfolios, with total expenditure reaching PLN 513 million in Q1 2026, a 124% increase compared to the same period in 2025.

In terms of financing activities, KRUK S.A. redeemed Series AL2 and AK2 bonds totaling PLN 72.5 million and issued new Series AL6 bonds worth PLN 600 million, maturing in 2033. Additionally, the company announced a proposed dividend of PLN 20.00 per share for 2025, in line with its dividend policy.

KRUK S.A. continues to maintain a strong financial position, with total assets amounting to PLN 13.57 billion as of March 31, 2026, up from PLN 13.03 billion at the end of 2025. The company’s equity also grew to PLN 5.64 billion, reflecting its robust performance and disciplined financial management.

Relevance to KRUK S.A.: This article highlights KRUK S.A.'s financial performance, strategic investments in debt portfolios, and operational efficiency, which are central to its business model of debt recovery and credit management services across Europe.