The EOS Group, owned by the large German retailer the Otto Group and created to manage the Otto Group's receivables, achieved a very good result in the challenging 2023/24 financial year with an EBITDA of EUR 412.9 million.
In an interview with CEO Marwin Ramcke and Board members Justus Hecking-Veltman (CFO), Carsten Tidow (Eastern Europe), Stephan Ohlmeyer (Central Europe), and Sebastian Pollmer (Western Europe), the successful performance despite economic challenges is discussed.
EOS generated earnings of EUR 412.9 million (EBITDA) in the 2023/24 financial year, representing a decline over the previous year. How do we put this development into context?
Marwin Ramcke: 'We are looking back on a challenging yet highly successful financial year. Once again, we have had high interest rates, the war in Ukraine, and high inflation across large parts of Europe to contend with this year, and will continue to have to do so. But we are ready and motivated to take on these challenges. As a strong economic partner, we are optimally positioned. Given the situation described, this is a very good result – in fact it is the second highest result achieved to date in the 50-year history of the EOS Group. We owe our success to our more than 6,000-strong workforce. Every single employee played their part and I would like to take this opportunity to thank each and every one of them. The countries I would particularly like to highlight in this context are France, Denmark, Poland, Bulgaria, Bosnia and Herzegovina, Greece, and Slovenia, which produced particularly good results this year.'
Justus Hecking-Veltman: 'Despite the decline in earnings, our performance this year was robust once again, our international teams have done an outstanding job. Although our investments have fallen overall, we succeeded in making a number of significant debt purchases in the double- or triple-digit million range, thereby cementing our strong market position. The purchase of receivables portfolios will also remain a key focus area of the EOS Group in the future. Our sights are set on long-term success.'
How has the business performed in Eastern Europe?
Carsten Tidow: 'The Eastern Europe region achieved a fantastic result with a strong operational performance and high investments totaling EUR 212.5 million, all in spite of the considerable headwind we have been experiencing there due to interest rate increases. We achieved new record results for the region in four countries (Bosnia and Herzegovina, Bulgaria, Poland, and Greece).'
What is the situation in Western Europe?
Sebastian Pollmer: 'Despite the headwind we have been experiencing in individual countries, the region has had a good year, achieving sales of EUR 323.4 million. France not only celebrated its 30th birthday, but also performed well financially and, together with a co-investor, was able to secure the purchase of a record portfolio with a nominal value of EUR 364 million. Denmark also remains on track with a strong performance in its tenth anniversary year, successfully concluding two large forward-flow agreements with leading consumer credit banks. Portugal is now well established on the market after just two years and continues to sprint toward success.'
And what about Central Europe?
Stephan Ohlmeyer: 'We implemented numerous restructuring measures in Germany during the past financial year, which are now starting to bear fruit. All employees are doing a great job – thank you to everyone! I would particularly like to mention Slovenia, which has performed exceptionally well in a comparatively small market.'
More information:
EOS
www.eos-solutions.com