Eleving Group 12M results ended on December 31, 2024

EQS-News: Eleving Group S.A. / Key word(s): Annual Results Eleving Group 12M results ended on December 31, 2024 10.02.2025 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Sustained accelerated growth backed by successful IPO Operational and Strategic Highlights Profitability Eleving Group finished 2024 with the historically strongest financial performance, recording revenues of EUR 217.0 mln, up by nearly 15%, compared to the 2023 results. The Group maintained a diversified business operations portfolio, generating a well-balanced revenue stream from all core business lines: Flexible and subscription-based products contributed EUR 47.9 mln to the revenues. Traditional vehicle financing contributed EUR 73.5 mln to the revenues. Consumer lending products contributed EUR 95.6 mln to the revenues. The Group's adjusted EBITDA hit a twelve-month record high, totaling EUR 90.0 mln, a noteworthy increase of over 16% compared to the corresponding reporting period a year ago. The net portfolio over 2024 increased by EUR 51.3 mln and reached EUR 371.6 mln at the end of Q4 2024, a rise by an impressive 16% compared to the corresponding reporting period a year ago. The net profit before FX and discontinued operations landed at EUR 32.5 mln by the end of 2024, a notable increase of nearly 15% compared to the corresponding reporting period a year ago. Total net profit reached EUR 29.6 mln, a substantial increase of almost 21% compared to the corresponding reporting period a year ago. Adjusted for one-off Romanian VAT liability for prior years, total net profit stands at EUR 32.2 mln, reflecting more than 31% growth year-over-year. Growth Loan issuance volumes increased to EUR 368.6 mln, an improvement of 26.8%, compared to the corresponding reporting period a year ago (12M 2023: EUR 290.6 mln). The main drivers have been the continuous increase in organic demand for our products, successful loan product offering strategy modifications in certain countries, and further expansion of sales channels, with an increased focus on digitalization and scalability. Loan portfolio reached a new record high of EUR 371.6 mln, marking a cumulative growth rate of 25% over the last 8 years. The most significant portfolio growth occurred in Q4, with an increase of EUR 25.4 mln. Growth was primarily driven by Romania, Uganda, Albania, and the acquired Sub-Saharan markets. The vehicle finance business line sustained upward momentum as loan applications over the year leaped by 80.9% compared to the 2023 figures. Significant customer activity was generated by East Africa’s motorcycle and the Romanian, Latvian, and Uzbek car financing segments. The Group's consumer finance business line reached a new milestone of EUR 56.4 mln worth of loans issued in Q4 2024. Loans issued in EUR terms grew by 43.7% in 2024 compared to the previous year.  The main growth drivers were Albania, Namibia, and Zambia.   During Q4 2024, Lesotho implemented a business activation strategy, including updated product pricing. These changes led to significant issuance growth beginning in December. Operational Milestones Eleving Group has finished the first stage of its digitalization journey. Our new generation 2.0 digital solution (customer self-service platform) has been implemented in all established European vehicle finance markets, finishing with year-end implementations in Latvia and the Caucasus. Piloted with Romania at the start of the year, the self-service portal has been continually updated, now offering a broad range of services. Key benefits: New records for repeated sales and new loan issuance growth. A double increase in subscription payment usage. Improved collections, customer reach rates, and operational efficiency. Eleving Group continues to invest in improving its underwriting and customer risk evaluation processes. Portfolio quality improvements on a year-on-year basis are evidenced by a significant reduction of NPL rates in 2024—from 7.5% to 6.1% for vehicle finance and from 4.5% to 4.3% for the consumer finance business segment. Eleving Group is driving further green mobility in Africa, with our East African motorcycle business firmly establishing itself as the frontrunner in the e-motorcycle financing segment. This year, we financed over 2,000 e-motorcycles, and our customers commuted around 20 mln kilometers on pure electricity, with an estimated 1,000 metric tonnes of CO2 saved during this year alone.    Eleving Group, in collaboration with Ibis Consulting ESG advisors and Verdant Capital, a specialist investment bank, is deploying an Environmental Social Management System across its vast branch network in Kenya. This initiative will include scaling up the waste management program, starting from Nairobi headquarters to Kenyan branches. Financial Highlights and Progress   Consistent and healthy profitability as evidenced by the strongest-ever yearly financial performance: Adjusted EBITDA of EUR 90.0 mln (12M 2023: EUR 77.5 mln).    The net profit before FX and discontinued operations of EUR 32.5 mln (12M 2023: EUR 28.3 mln).   Total net profit of EUR 29.6 mln (12M 2023: EUR 24.5 mln). Adjusted for the Romanian VAT liability, total net profit reached EUR 32.2 mln.    Total net loan and pre-owned vehicle rent portfolio of EUR 371.6 mln (2023: EUR 320.3 mln). 2024 ended with an improved financial position, supported by the capitalization ratio of 29.3% (31 December 2023: 26.1%), ICR ratio of 2.4 (31 December 2023: 2.3), and net leverage of 3.3 (31 December 2023: 3.7), providing sufficient headroom for Eurobond covenants.    During Q4 2024, Eleving Group accomplished the largest initial public offering (IPO) in Nasdaq Riga's history. Immediate short-term use of the proceeds was allocated to redeeming Eleving Group’s subordinated bonds and selectively repaying higher-cost Mintos outstanding loans. The remaining IPO proceeds were allocated for organic growth, new product rollout, and new market launches. The medium-term target remains to double the business and maintain a consistent 50% annual dividend rate. Eleving Group remains focused on its strategic direction to further diversify its debt profile and funding through various channels, primarily in local currencies, and optimizing funding costs both in EUR and USD currencies: Investments raised through the Kenyan local notes program increased by around 30%, from EUR 20.5 mln to EUR 26.7 mln during Q4 2024. Most of this funding is secured in the local currency. Throughout Q4 2024, the Group raised EUR 2.0 mln in Botswana at favorable rates through the local notes program. The outstanding total investment amount is around EUR 8.1 mln. All of this funding is secured in the local currency. The Group continues using the Mintos platform, a marketplace for loans. The weighted average annual funding cost for Mintos was 10.1% over Q4 2024, in line with the marketplace’s year-end seasonality trends. It represented a considerable improvement, compared to the end of 2023 11.0% weighted average annual funding cost. At the end of Q4 2024, Eleving Group had outstanding loans of EUR 60.5 mln on Mintos (compared to EUR 63.9 mln as of 31 December 2024), a reduction of EUR 3.4 mln. During Q4 2024, due to IPO equity raise proceeds and continuous profitability, the Group increased its equity to EUR 108.2 mln (EUR 87.9 mln as of 30 September 2024), further enhancing its capital base for future growth. On 16 December 2024, the Romanian Tax Authority concluded a tax audit of Eleving Group’s Romania operations. Based on the audit’s findings, an additional VAT liability of EUR 3.0 million (with an impact on the net profit of EUR 2.6 mln) was determined for the years 2017-2022. The related penalties and late payment interest under Romanian tax amnesty rules have been waived. The Group strongly disagrees with the tax audit assessment and has submitted a formal contestation to the Romanian tax authorities. Modestas Sudnius, the CEO of Eleving Group “2024 has been remarkably successful for Eleving Group both in terms of operational achievements and in laying the foundation for future growth. A standout milestone was our IPO in October, which met our fundraising targets and became the largest in Nasdaq Riga’s history and one of the largest IPOs in the Baltics ever carried out by a privately held company. This achievement reinforced our capital market position and provided additional resources to support our strategic goals.   Building on the momentum gained in 2023, we continued delivering outstanding business results also in 2024. Yet again, we hit new records in all key financial metrics and further improved the Group's profitability, demonstrating the efficiency and maturity of our operations.  Our business grew in most of our markets, with the highest increase in the volume of portfolio achieved in Romania and Uganda on the vehicle finance side and in Albania—in consumer finance. Also, our newest Sub-Saharan consumer financing markets delivered impressive growth. The success can mainly be attributed to higher issuance levels, accelerated digitization initiatives across our matured markets, and seamless and continuous integration of the Sub-Saharan markets into the Group's processes, highlighting our ability to optimize and scale operations within our current markets.  At the same time, we remain focused on portfolio quality as our key pillar of sustainable growth. Portfolio growth is achieved alongside high underwriting standards, as impairment expenses have been kept under control over 2024. Our disciplined risk management approach on a year-on-year basis is evident in the net NPL ratio improvements—from 7.5% to 6.1% in vehicle finance and from 4.5% to 4.3% in consumer finance. These results reflect our ability to drive growth while maintaining financial stability.    Additionally, we have successfully minimized foreign exchange volatility risks. This resilience is a direct result of increased borrowings in local currencies and our proactive and strategic hedging approach, particularly in markets with historically volatile currency movements.   Looking ahead, we remain committed to accelerating growth through three core pillars—deepening our presence in the existing markets, expanding our product portfolio, and exploring new geographies. Our ultimate business goal remains unchanged—to nearly double the business within the next three years. To support these ambitious business growth objectives, we are preparing for a debt fundraising round in the Baltics and broader Europe this year. With our strong financial performance, disciplined strategy, and proven execution capabilities, we are well-positioned to seize future opportunities and reinforce Eleving Group’s leadership in the industry.” Maris Kreics, the CFO of Eleving Group “Eleving Group continued its strong financial performance in 2024, achieving steady growth across all key indicators. The adjusted EBITDA reached EUR 90.0 mln, reflecting a 16% increase compared to the same period last year, while the adjusted net profit increased to EUR 32.2 mln, a significant 31% improvement year-over-year. During Q4, the Group’s net portfolio expanded to EUR 371.6 mln, reflecting a 16.0% increase from EUR 320.3 mln at the end of 2023. Since 2016, the Group has maintained an average annual net portfolio growth of 25%, solidifying its position as a high-growth financial services provider. This performance was also recognized by the Financial Times, which ranked Eleving Group as the 41st fastest-growing company in Europe over the past decade—the highest-ranked company from the Baltics.  The Group maintained a steady revenue stream from its core business segments, reaching EUR 217.0 mln—a rise of 14.6% from the previous year. The traditional vehicle financing segment contributed EUR 73.5 mln, the flexible and subscription-based products generated EUR 47.9 mln, and the consumer lending segment recorded EUR 95.6 mln in revenue.  At the same time, prudent debt and capital management helped optimize financing costs. The Group expects further improvement in this area in 2025, driven by the retirement of subordinated bonds and the repayment of the most expensive outstanding Mintos loans. This should result in substantial savings in the annual debt costs for the Group. The Group remained active in its local notes program, particularly in Kenya and Botswana, where we secured funding mainly in local currencies. In Q4 alone, outstanding local notes increased by over EUR 6 mln in Kenya, and EUR 2 mln funding was secured in Botswana, as a result further mitigating potential FX risks.  Also, Eleving Group’s equity position continued to grow in strength, reaching EUR 108.2 million at the end of 2024. The capitalization ratio, which reflects the ratio of equity to the net loan portfolio, improved to 29.3%, enhancing the Group’s ability to raise funds in debt markets and potentially securing more favorable borrowing conditions in the future.  To conclude, in Q4 of 2024, we saw one of the most significant events in the Group’s history—the completion of an IPO, which resulted in EUR 29.0 mln attracted to the equity. With the proceeds from the IPO, Eleving Group is well-positioned for the next growth phase. Additionally, three equity research firms—LHV Pank AS, Signet Bank AS, and Warburg Research GmbH—have initiated coverage of Eleving Group, assigning a target share price range of EUR 1.88–2.50, implying a potential upside in the share price of the company.” Full unaudited consolidated report on the 12M period ended on 31 December: https://www.eleving.com/investors/reports Conference Call: The Group's management team will hold an English conference call on 11 February 2025 at 15:00 CET to discuss the results. Link to register for a conference call can be found here. 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, 53% of the group's portfolio is located in Europe, 34% 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 2.0 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 2,790 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies, compiled 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 This announcement does not constitute an offer or a solicitation, nor a recommendation to purchase or sell securities or other investments referred to herein, including an offer of bonds to the public in the United Kingdom. It is recommended that any investor interested in investing makes their own independent and informed assessment and seeks their own independent legal, tax and/or financial investment advice from a competent financial advisor. The announcement does not constitute independent investment advice. No prospectus has been or will be approved in the United Kingdom in respect of the securities. 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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:	2083457

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