- EOS clearly profitable despite slight decline in revenue and earnings
- High level of investment in secured and unsecured receivables accompanied by targeted cost-cutting measures
- Corporate responsibility to be firmly embedded in business model
“In view of the difficult conditions of the last year, the positive operating result was by no means a given,” says Klaus Engberding, CEO of the EOS Group. “We needed to continually assess the wider implications of the pandemic, make the right investment decisions and adjust our costs accordingly. I am therefore extremely proud of the fantastic achievement of our teams who faced up to these challenges and made this success possible through their dedicated collaboration.”
Social responsibility to become integral part of business model
The ongoing development of the organization and heavy investment in IT to improve business operations were the key drivers behind the sustained stability of EOS. The values-driven yet forward-looking approach of EOS, which is part of the Otto Group, also contributed to its success. With a new corporate responsibility (CR) strategy, the EOS Group aims to firmly embed four key actionable areas into its business model in future. In this context, the focus is on solution-driven and sustainable debt relief for defaulting consumers, proactive funding initiatives and (financial) education measures, climate-neutral operation by 2030, and the championing of strict and binding industry standards in all 26 countries where the company is located.“As one of the leaders in our industry we are absolutely aware of our responsibility towards society. Through our actions, we do not just want to help the economic system to function by improving the financial situation of our clients and of defaulting payers; we also aim to use our new CR strategy to do our part to change the world we operate in for the better overall,” says Engberding.
| 2020/21 | 2019/20 | |
|---|---|---|
| Sales revenue (in EUR million) | 792.5 | 853.1 |
| of which | ||
| Germany | 289.1 | 303.3 |
| Eastern Europe | 249.7 | 266.7 |
| Western Europe | 207.1 | 232.0 |
| North America | 46.6 | 51.0 |
| EBITDA (in EUR million) | 312.4 | 343.4 |
Stable business performance in Western Europe
The continued stable business performance in France, Belgium, Spain and Denmark enabled EOS to report a good result overall for Western Europe. At EUR 207.1 million, the region accounted for more than a quarter (26.1 percent) of the total revenue of EOS Consolidated. Moreover, the EOS companies in France and Belgium were able to reinforce their position as leading providers for debt purchases. In Spain too, EOS increasingly shifted its focus from fiduciary collection to receivables purchasing, and was able to build up a strong market position as a buyer of debt portfolios.
Accordingly, EOS in Spain closed the year with record investments, e.g. in three NPL portfolios comprising a total 232,000 receivables and with a nominal value of EUR 810 million. “Thanks to our longstanding experience, and despite the lower volume of NPLs on the market, we were once again a preferred partner for our customers,” explains Dr. Andreas Witzig, member of the EOS Group’s Board of Directors with responsibility for Western Europe. “Our companies in the region are in a good position, so we are confident of being able to continue to expand our receivables purchasing activities in the new financial year.”
