Polish debt collector Kruk’s Q3 net profit falls on higher costs

Polish debt collector Kruk KRU reported a year-on-year fall in its third-quarter net profit on Wednesday, driven mainly by cost rises.

WHY IT’S IMPORTANT

Kruk is one of Europe’s largest receivables management companies, with operations centred on its home market of Poland along with Romania, Italy, and Spain.

BY THE NUMBERS

The company’s quarterly net profit fell around 18% to 292.6 million zlotys ($80.5 million), while revenue for the quarter fell 5% year-on-year to 803.4 million zlotys.

Operating costs increased 5.5% to 388.5 million zlotys, driven by higher legal and salary costs and the costs of IT services.

Net financial costs also rose 4% to 109.2 million zlotys as higher debt levels offset the impact of falling interest rates.

OUTLOOK

In January, Kruk adopted a new strategy for 2025-2029 along with a dividend policy that proposes distributing at least 30% of consolidated net profit to shareholders.

The strategy targets 15 billion zlotys of investment in debt portfolios over the five-year period.

($1 = 3.6365 zlotys)