Business
Poland's Kruk posts higher 2025 profit as strong cash collections offset rising costs
Poland's Kruk posts higher 2025 profit as strong cash collections offset rising costs
About this update from Kruk S.a
Poland's leading debt management company Kruk GPW:KRU reported a rise in its 2025 net profit on Thursday, helped by robust cash collections that outpaced higher operating costs.Full-year net profit rose to 1.09 billion zlotys ($304.32 million) from 1.07 billion zlotys a year earlier. Fourth-quarter net profit was 208.4 million zlotys, matching preliminary estimates.• Fourth-quarter earnings were in line with preliminary results reported last week, which had triggered a drop of over 9% in the company's shares.• Cash recoveries from purchased debt portfolios climbed 11% to 3.92 billion zlotys, with over half coming from foreign markets, driven by a 26% jump in Italy.• Total revenue grew 10% to 3.19 billion zlotys, bolstered by a 66% surge in revenue from the Spanish market and a 21% increase in Italy.• Operating costs excluding depreciation grew 8% to 1.55 billion zlotys, driven by higher wages, legal fees, and IT transformation expenses.• Spending on new debt portfolio purchases fell 21% during the year to 2.22 billion zlotys, while net finance costs rose to 441.7 million zlotys on increased debt.• Warsaw-listed Kruk buys and collects on portfolios of unpaid consumer and corporate debt, with core operations concentrated in Poland, Romania, Italy, and Spain.($1 = 3.5817 zlotys)