Kruk debt collector posts PLN 215.6 mln net profit in Q1 2025, above expectations

In the first quarter of 2025, Kruk's cash EBITDA increased by 2 percent year on year to PLN 617.6 million (EUR 144.4 mln).

Operating profit amounted to PLN 393.4 million (EUR 92 mln) and revenue to PLN 802.2 million (EUR 187.55 mln), both above the market expectations.

As reported by the company, net profit in the period was lower by about 26 percent and the decrease was mainly due to a PLN 79 million (EUR 18.5 mln) year-on-year increase in operating expenses, which was partially offset by a PLN 54 million (EUR 12.6 mln) year-on-year increase in revenue. Repayments from acquired portfolios amounted to PLN 923 million (EUR 215.8 mln), up by 8 percent year on year.

"The first quarter result was in line with our expectations. Profit was driven by both higher revenues in annual terms and higher operating expenses, primarily legal costs, which increased by 45 percent year on year. Total repayments exceeded accounting forecasts by 6 percent and were higher than in the prior year period in every market," said Kruk's CEO Piotr Krupa, quoted in the press release.

In the first quarter of 2025. Kruk invested PLN 229 million (EUR 53.54 mln) in debt portfolios with a nominal value of PLN 1.1 billion (EUR 257.2 mln), the majority of which were investments in unsecured retail debt portfolios.

The net debt to cash EBITDA ratio at the end of the first quarter of 2025 was 2.6, with a yield for the last 12 months of 21 percent.

"We have invested in line with the plan and the size of the debt portfolio market, focusing on unsecured retail portfolios," CEO Krupa said.

"The plan for this year remains in place and we anticipate approximately PLN 2.5 billion of investment across all markets. We maintain good access to funding, and, with a solid foundation, we continue to execute our ambitious strategy," he added.

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