GRENKE-Aktie: Profit Forecast Reduced

GRENKE Lowers Profit Forecast

The German financial services provider, GRENKE, has recently announced that it is reducing its profit forecast for the current fiscal year. The company cited a challenging economic environment and increased competition as reasons for the downward revision.

GRENKE's shares fell by more than 10% in early trading on Monday following the announcement. The company's profit forecast for 2023 is now expected to be between 62 million and 75 million euros, down from a previous forecast of 85 million to 100 million euros.

Reasons for the Reduced Forecast

GRENKE cited several factors contributing to the reduction of its profit forecast. The company mentioned increased competition in the leasing market leading to lower margins. Additionally, geopolitical tensions and inflation have led to higher costs and supply chain issues.

Furthermore, GRENKE has faced challenges in its factoring business, where it provides financing to small and medium-sized enterprises. The company has been affected by the pandemic and economic downturn leading to higher credit losses.

Implications for Investors

The reduced profit forecast is likely to impact GRENKE's share price in the short term. However, the company's long-term prospects remain uncertain.

GRENKE's management team has expressed confidence in the company's ability to navigate the challenging market conditions. The company plans to focus on cost-cutting measures and expanding into new markets to mitigate the impact of the reduced profit forecast.