February 25, 2022
DelfinGroup reports the highest profit in the history of the company - 5.2 million euros before tax
2021 has been the best year in the history of AS DelfinGroup - according to the company's unaudited results both turnover and profit records have been achieved. The company’s revenue increased by 7.7% in 2021, reaching 25.5 million euros, while profit before tax reached 5.2 million euros, which is an increase of 7.2% compared to 2020.
The last quarter of the previous year was also the most successful so far, reaching a quarterly turnover record of 7.1 million euros, which was 9.2% more than in the third quarter. The company's profit before tax in the fourth quarter increased by 41.7% compared to the third quarter and amounted to 1.7 million euros, while the profit after tax of the same period increased by 60% to 1.6 million euros.
Chairman of the AS DelfinGroup Management Board Didzis Ādmīdiņš: “Good results of the past year show that the uncertainty caused by the pandemic has not directly affected the company's operations. We are happy to see that the retail lending and services for pre-owned goods we offer are equally relevant and in demand both in times of economic growth and in crisis situations. This proves the sustainability and resilience of AS DelfinGroup’s development strategy to face various changes in future as well.”
“Overall, the past year has been historically significant for the company in many ways. AS DelfinGroup became a public company by successfully launching an initial public offering (IPO) on Nasdaq Riga stock exchange. Almost six thousand investors participated, and we managed to attract 8.09 million euros. Although the IPO process created significant costs and impacted our profit line, becoming a public company has already increased the competitiveness of AS DelfinGroup, ensuring the availability of more beneficial financing in the capital market. Last year AS DelfinGroup continued to expand the network of Banknote pawnshops and concluded one of the largest industry transactions in the region and acquired the pawnshop business of AS Moda Kapitāls. This allowed our company to further strengthen its leading position in the regions of Latvia. This year we will proceed with the process we started last year and continue actively investing in the development of innovative fintech, automation and digitalisation solutions. This will both improve the existing services and allow us to offer new products to new groups of customers,” emphasises D. Ādmīdiņš.
Aldis Umblejs, CFO of AS DelfinGroup: “Growth in 2021 was ensured by retail lending and sale of pre-owned goods. In total we issued loans in the amount of 52.5 million euros last year, which was an increase of 9% compared to 2020. Online store of pre-owned and slightly used goods showed excellent results, and was the fastest growing sales segment in 2021. Its revenue increased by 212% compared to 2020. Good financial performance and a successful IPO resulted in an 84% increase in equity, reaching EUR 17.4 million. The equity ratio at the end of the year was 33.4%. First dividends following the IPO were paid at the end of December as the third quarter profit dividends in the amount of 512,111.41 euros and shareholders received 0.0113 euros per share. Each quarter this year we will distribute up to 50% of the previous quarter’s profit in dividends, as well as annual dividends, i.e., the dividends will be paid five times a year, which is good news for our shareholders. Last year AS DelfinGroup successfully repaid three previous bond issues. In 2021 a total of EUR 13.5 million was repaid and refinanced at lower interest rates. We had promised this to investors during IPO and we have fulfilled it. Refinancing is a long-term benefit for the company, as it significantly reduces the total amount of interest payments on the capital raised.”
In August 2021, AS DelfinGroup published financial targets for 2022 on Nasdaq Riga, which envisaged, inter alia, an increase in the company's loan portfolio over EUR 51 million and a pre-tax profit of EUR 8.7 million. The results so far show that the company is making good progress towards the fulfilment of the set targets.
More information on the quarterly, semi-annual and annual results of AS DelfinGroup is available on the company's website: www.delfingroup.lv or on the website of Nasdaq Riga: https://nasdaqbaltic.com/lv/.
About AS DelfinGroup
AS DelfinGroup is a licenced technology-based financial services company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, 35 thousand loans are issued every month and serviced by the professional team of more than 270 AS DelfinGroup employees. The company has a total of over 400,000 registered customers. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and since 2021 as a share issuer on the Baltic Main List. The company’s IPO in 2021 attracted almost 6000 new shareholders. The company regularly pays dividends to its shareholders. In 2020, the company's net loan portfolio grew to EUR 34.6 million, while its EBITDA reached EUR 9.3 million, with profits before income tax for dividends EUR 4.65 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion and facilitating the circular economy. The company has been profitable every year since 2010.