GRENKE – Profit warning! Share price plummets!

Frankfurt am Main, September 29, 2023 - The listed leasing company GRENKE has issued a profit warning and lowered its profit forecast for the current year. According to the company, the operating result (EBIT) will now be significantly below the previous year's level. The share price of GRENKE reacted to the news with a significant drop of around 15 percent.

As reasons for the profit warning, GRENKE cites the "challenging market environment" and the "ongoing geopolitical uncertainties". The company has been suffering from the weak demand for leasing products in recent months, especially in the core markets of Germany and France. In addition, GRENKE is also feeling the effects of the war in Ukraine and the associated supply chain disruptions.

The profit warning triggered a sell-off in the GRENKE share. The share price fell by around 15 percent to EUR 12.50 on the Frankfurt Stock Exchange. This means that the company's market capitalization has fallen by around EUR 250 million. The share price is now at its lowest level since March 2020.

GRENKE expects the challenging market environment to continue in the coming months. The company is therefore not expecting any significant improvement in the business situation in the short term. GRENKE is currently working on measures to reduce costs and improve efficiency. However, it is unclear whether these measures will be sufficient to offset the negative effects of the market environment.

The profit warning from GRENKE is a clear indication of the challenges facing the leasing industry. The company is suffering from the weak demand for leasing products and the ongoing geopolitical uncertainties. It remains to be seen whether GRENKE will be able to overcome these challenges and return to profitability in the medium term.