Mintos originator DelfinGroup sees 40pc rise in profit
Mintos loan originator DelfinGroup increased its profits by 40 per cent to €7.3m (£6.5m) in 2022.
DelfinGroup was established in 2009 and operates under the brand names Banknote and VIZIA.
Income amounted to €35.1m in 2022, according to the company’s financial results, while its loan portfolio increased by 54 per cent to €67.4m. Core earnings increased by 29 per cent to €13.1m.
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“Although the previous year began with a gradual easing of pandemic restrictions, which allowed us to look optimistically into the future, the complex geopolitical situation created new challenges and uncertainty for the global economy,” chairman of the management board Didzis Ādmīdiņš said.
“For the company, this meant adapting to the new situation by continuing to invest in and develop each of its business segments – consumer loans, pawn loans, and the sale of pre-owned and new goods.
“However, I must admit that we have successfully continued the company’s development even in uncertain conditions, and the objective economic turmoil will strengthen it in the long term.”
DelfinGroup issued loans of €80.3m in 2022, an increase of 62 per cent compared to the previous year, while the sales volume of goods increased by 27 per cent to €11.4m.
DelfinGroup market share increased in both consumer loans and the pawnshop segment in the first half of 2022. The data for the second half of last year has yet to be published, but the company forecasts that the market share growth trend will continue.
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“In each of our business segments, we are also focusing on digital solutions, which will remain a consistent approach for the company,” Ādmīdiņš added.
“Last year, for example, investments in digital solutions amounted to more than €100 000, while in sales, our focus is on promoting and raising awareness of the circular economy.”
Last year, DelfinGroup made six dividend payments for more than €5m or €0.1197 per share, which provided shareholders with a dividend yield of 8.1 per cent based on the share price on 30 December 2022.
In addition, while the Nasdaq Baltic Benchmark Index declined by 11.75 per cent last year, DelfinGroup’s share price rose by 5.8 per cent.
Ādmīdiņš said the company’s rapid growth has been driven by ambitious financial targets, however, considering the global economic situation and the rising cost of funding, the group renewed its financial targets on 28 February.
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