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Grenke: quarterly profit collapses – reactions to Viceroy

After the argument “Grenke vs. Viceroy ”, which led to a sharp fall in the price of Grenke shares, the company’s quarterly figures published today are particularly in focus. The Süddeutsche show a slump in profits: In the third quarter, the group profit falls from 35.6 million euros to 17.7 million euros. In terms of new business, the company from Baden-Baden reported a decrease from 871 million euros to 704 million euros for the third quarter. The margin for new business based on contribution margin 2, on the other hand, increased from 17.1 percent to 18.4 percent.

“We are confident that, thanks to the broad support from customers, investors and employees, we can continue to successfully conquer two waves at the same time. With a risk-adjusted management of new business, sufficiently high liquidity and an appropriate austerity course, we are well equipped for the coming months ”, said Antje Leminsky, CEO of Grenke.

“Based on the synchronization of incoming and outgoing payments over the next few quarters, we can deal with both more and less new business”, says Sebastian Hirsch, CFO of Grenke AG, the business development in the 3rd quarter of 2020 and the further outlook: us enough perspective to be able to react flexibly to the dynamic development in connection with the corona virus ”, said the manager.

For the fourth quarter of 2020, Grenke expects new business to be around 60 percent of the level from the same period last year. The further course of the corona pandemic and the countermeasures by governments will play a decisive role in the actual development.

The company also reports further reactions to the harsh criticism from Viceroy in the company. So should the According to a company report on Thursday among other things, the controversial franchise companies will be integrated into the group within 12 to 18 months. In addition, Grenke wants to expand the Executive Board to include the position of Chief Risk Officer (CRO) with responsibility for risk control, legal affairs and compliance. There is a new division of responsibilities on the board of directors: Sebastian Hirsch becomes Chief Financial Officer (CFO), CEO Antje Leminsky is also responsible for internal auditing, says Grenke.

At a glance – chart and news: Grenke AG

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