Latvia’s Eleving Group Reports Steady Growth, Profitability in 2022

Eleving Group reports steady growth and “robust” profitability figures in 2022.

The company highlights that it “increased its net portfolio by 17.8% compared to 2021, while adjusted net profit before FX reached €27.3m.”

The company has provided the following operational and financial information:

Eleving Group “closed the 2022 financial year with an adjusted EBITDA of €71.8m, a 29.2% increase compared to 2021.” Adjusted net profit “before FX reached an all-time high of €27.3m, up €8.8m YOY.”

Adjusted revenue for 2022 (excluding fees and commission income) “reached €175.9m, a 14.4% increase compared to 2021.”

Flexible lease and subscription-based products “contributed €50.8m, up 91.1% YOY but down 4.8% QOQ.”

Traditional lease and leaseback products “contributed €68.0m, up 32.5% YOY and up 13.2% compared to the previous nine-month period.” Revenues from the consumer loan segment reportedly “generated €57.1m – a 12.1% decrease compared to 2021, but a 4.0% increase compared to the previous quarter.”

The Group’s portfolio “increased to €288.9m, a record-high yearly figure for the company.”

The company’s vehicle and consumer segments “accounted for €221.8m and €67.1m, respectively.”

Modestas Sudnius, CEO of Eleving Group

“We started 2022 with a dosed optimism. The turbulence caused by the Covid-19 pandemic had calmed, and it looked as if we could plan for moderate and predictable growth in the global economy. However, the changing geopolitical situation and the war in Ukraine shifted the market and macroeconomic outlook. Despite that, we’ve experienced a solid quarter and twelve-month period with the best financial and operational results in the Group’s history.”

He added:

“The main objective for 2022 was to maintain portfolio quality, increase efficiency, and reduce portfolio exposure in the affected markets while maintaining steady growth as a Group. This meant more focus was placed on managerial efficiency, cost optimization, careful capital management, and a slightly more conservative business approach. And it has paid off in full.”

During the fourth quarter, the Group “continued its local bond issuance program in Kenya and, by year-end, had nearly doubled the amount raised in the third quarter as the total funds onboarded equaled €7.3m.”

Maris Kreics, CFO of Eleving Group, said:

“All things considered, we see a slightly slower portfolio growth q-o-q, but this has been our choice to mitigate the potential risks in times of uncertainty. We managed to diversify our portfolio across the markets and have absorbed the negative effect of war by decreasing exposure in the affected markets accordingly. Also, the diversification of the Group’s funding structure is still strong, with more opportunities for us to tap into the private debt at a local market level, especially in the African region.”

Maris added:

“In the coming quarters, we plan to continue focusing on controlled growth, improving our existing products, and ensuring the quality of our portfolio. Additionally, we will be closely monitoring the developments in the financial markets, especially since our local three-year bond in Latvia is maturing during the next year.”In February 2023, Eleving Group received 1st place in Nasdaq Baltic Awards in the category of Best Investor Relations on the First North Bond List. According to the company’s representatives, this is a significant recognition at the Baltic level, which reflects the successful work done in the field of investor relations in the previous years.”

As noted in the update, 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 15 countries in the Baltics and Central, Eastern, and South-Eastern Europe.”

To date, the company has “issued over €1.2 million in loans and has a net loan portfolio of almost €290 million.”

Some of the equity investors of Eleving Group and Mintos “overlap.”

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