EQS-News: MLP SE: FY 2024: Earnings at upper end of forecast, revenue above one billion euros for the first time – significant growth planned up to 2028

FY 2024: Earnings at upper end of forecast, revenue above one billion euros for the first time – significant growth planned up to 2028

• FY 2024: Total revenue increased on a very broad basis and for the eleventh year in succession, new all-time high of EUR 1,067 million (plus 10 percent) achieved, compound annual growth rate (CAGR) of 9 percent since 2020 – recurring revenue at 68 percent
• Key figures for future revenue development further increased to new record levels: MLP Group reaches EUR 63.1 billion in assets under management and a non-life insurance premium volume of EUR 751 million
• At EUR 95.0 million (forecast for 2024: EUR 85-95 million), earnings before interest and taxes (EBIT) are above the two previous years (2023: EUR 70.7 million; 2022: EUR 75.6 million) – MLP is benefiting in particular from a very strong performance in the Wealth competence field
• Executive Board proposes a dividend increase of 20 percent to 36 cents per share (2023: 30 cents)
• Forecast for 2025: MLP anticipates EBIT of EUR 100 to 110 million while continuing on its sustainable growth path – the real estate business is also expected to make a positive contribution again
• New mid-term planning: Continuation of the growth path should lead to EBIT of EUR 140 to 150 million and total revenue of EUR 1.3 to 1.4 billion by the end of 2028 – strategic realisation of potential in consulting for family clients, targeted expansion of the corporate client business, as well as a multi asset approach for institutional clients; performance-based compensation at FERI cautiously and therefore only to a limited extent considered in the planning

Wiesloch, March 13, 2025 – The MLP Group achieved significant growth in both total revenue and EBIT in the financial year 2024. The Group increased total revenue to a new record level, exceeding the one billion euro mark for the first time. Growth was very broad-based and recorded for the eleventh time in succession. It was also possible to increase key figures that are of great importance for future revenue development to new record levels, with assets under management at EUR 63.1 billion and a non-life insurance premium volume of EUR 751 million. At EUR 95.0 million, EBIT was at the upper end of the forecast range in the financial year 2024. Despite high investments, MLP significantly outperformed the previous two years, recording above all strong growth in the Wealth competence field, particularly in wealth management and the interest rate business. The Executive Board will therefore submit a proposal to the Supervisory Board and the Annual General Meeting to increase the dividend by 20 percent to 36 cents per share for the past financial year. For 2025, MLP is forecasting EBIT of EUR 100 to 110 million, while continuing along its sustainable growth path. In addition, the Group has published a new mid-term planning: to record EBIT of EUR 140 to 150 million and total revenue of EUR 1.3 to 1.4 billion by the end of 2028. MLP anticipates significant additional momentum from an expanded and strategically aligned realisation of potential in consulting for family clients, the targeted expansion of the corporate client business and the multi asset approach for attracting and supporting high net worth and institutional clients; performance-based compensation at FERI is considered cautiously in this planning and therefore only included to a limited extent.

"Last year's results once again emphasise the strategic strength that we have developed in our business. We are increasingly able to translate this strength into rising revenues and earnings. We remain resolute in the pursuit of our significant growth course," comments Dr Uwe Schroeder-Wildberg, Chief Executive Officer at MLP SE. "We meet the needs of our discerning clients with a service offering that seamlessly combines personal and digital consulting – supported by consistent yet always responsible use of artificial intelligence. This applies to family, corporate and institutional clients throughout the Group."

New record level of total revenue

In the financial year 2024, MLP increased its total revenue by 10 percent to a new record high of EUR 1,067 million (PY: EUR 973 million). MLP achieved especially strong revenue growth of 27 percent to EUR 520 million (PY: EUR 408 million) in the Wealth competence field, particularly in wealth management and the interest rate business. In wealth management, MLP's private client business, as well as the support provided to institutional and high net worth clients by the MLP subsidiary FERI, contributed to the growth in revenue. The performance-based compensation at FERI also increased significantly. They are the consequence of positive performance of investment concepts and are largely recognised in the results.

The MLP Group recorded consistently high revenue of EUR 206 million (PY: EUR 201 million) in the Property & Casualty competence field, which comprises the non-life insurance business with both corporate and private clients. The Life & Health competence field, which comprises old-age provision and health insurance, displayed similar development; MLP generated revenue of EUR 298 million (PY: EUR 294 million) here. In the Others competence field, which includes other consultancy fees alongside the real estate development business, as expected revenue declined significantly to around EUR 13 million (PY: EUR 38 million) due to the proactive reduction of the associated business-related risks in this area.

The MLP Group was able to increase key figures, which are of great importance for future revenue development, to new record levels as of 31 December 2024: Assets under management rose to EUR 63.1 billion (PY: EUR 57.0 billion) and the managed non-life insurance premium volume rose to EUR 751 million (PY: EUR 687 million).

Positive development of client and consultant numbers

As of December 31, 2024, the MLP Group served 590,700 family clients (PY: 580,000). The gross number of newly acquired family clients was 20,500 (PY: 19,500). The number of corporate and institutional clients as of December 31, 2024, was 28,000 (PY: 27,400). The number of consultants in the MLP Group rose to 2,110 as of December 31, 2024 (PY: 2,055).

EBIT at EUR 95.0 million

The MLP Group was able to increase EBIT to EUR 95.0 million in the financial year 2024 and therefore significantly exceed the previous two years (2023: EUR 70.7 million; 2022: EUR 75.6 million). This was largely thanks to the strong revenue development in the Wealth competence field, as well as the consistently high revenue level in both the Property & Casualty and Life & Health competence fields. Only real estate development (in the Others competence field) was still significantly behind in 2024; however, the measures introduced early on are having an increasingly positive impact here.

Significant dividend increase to 36 cents per share proposed

For the financial year 2024, the Executive Board at MLP SE is proposing a significant increase in the dividend distribution of 20 percent to 36 cents per share. The payout ratio will then be 57 percent of Group net profit, which is within our announced range of 50 to 70 percent.

Forecast for 2025

MLP anticipates EBIT of EUR 100 to 110 million for the financial year 2025, while continuing on its sustainable growth path – with the real estate business also expected to make a positive contribution to earnings again. The 2025 forecast corresponds to the previous mid-term planning for 2025, which MLP published at the start of 2022.

New mid-term planning for 2028

MLP plans to continue its successful growth path, which should lead the Group to EBIT of EUR 140 to 150 million and total revenue of EUR 1.3 to 1.4 billion by the end of 2028. Performance-based compensation at FERI is considered cautiously in this planning and therefore only included to a limited extent.  Growth is planned strategically across all three competence fields: Wealth, Life & Health, and Property & Casualty.

In the Wealth competence field, further and extensive consultancy needs of MLP family clients can be covered. In particular, this involves the further expansion of the successful wealth management business. MLP offers a wide range of solutions here as part of its holistic financial consulting approach. Clients now also have the option of receiving regular payouts from their accumulated assets. This becomes increasingly relevant especially in the later stages of professional life. To achieve this client objective in the ongoing support of clients, MLP consultants will prospectively have an additional tool ("portfolio pension") at their disposal. Overall, the potential investment volumes amount to EUR 194,300 per household (minimum financial wealth of the top 10 percent in Germany). Given a nationwide wealth transfer volume of around EUR 400 billion p.a., further growth can be expected here. There is also potential from high net worth and institutional clients, which are both served by FERI.

In the Life & Health competence field, there is still a great need for supplementary old-age provision. Among the academically educated professional groups relevant to MLP, the gap in pension provision (defined as the difference between the last earned income and the statutory pension) is around EUR 2,300 per month or more for each individual. Demographic trends are likely to continue to have a negative impact on state-funded social security systems. Accordingly, getting the right advice and implementing occupational and private old-age provision schemes will become even more important in the future. In the corporate client business, there is another growth area for MLP in corporate benefits (including occupational health insurance and occupational pension provision). The ongoing shortage of skilled specialists is fuelling demand here.

In the competence field Property & Casualty, the targeted expansion of the corporate client business in particular continues to grow in importance: Alongside the ongoing organic growth at industrial insurance broker RVM Group and insurance specialist DOMCURA, MLP's broad portfolio of family clients is also playing an increasingly important part. Consultants can meet clients' needs with suitable solutions, not only in the private realm but also at their companies. This applies in particular to industrial insurance or occupational pension provision for employees. MLP consultants receive structural assistance ("on-site support") in their contact with corporate clients. When looking after large mandates in wealth management, MLP consultants can also draw on help in the network and involve specialists from multi asset investment house FERI. FERI itself has also taken the next step towards further growth with a series of new appointments in client support for the institutional business.

As a result of the targeted realisation of potential, the MLP Group is planning a significant increase in the key figures to between EUR 75 and 81 billion for assets under management and between EUR 1.0 and 1.1 billion in the non-life insurance premium volume by the end of 2028.

The significant increase in earnings planned by the end of 2028 will also be supported by MLP Group's digitalisation strategy, in which AI applications will lead to ongoing efficiency gains and improvements in client support. In addition, cost management remains strict.

"The forecast for 2025 substantiates our significant growth path, which we will continue to pursue consistently – the same applies to our new ambitious mid-term planning up to the end of 2028. We have strategically built and expanded a strong MLP Group, enabling us to leverage diverse opportunities in the coming years. The start to 2025 so far confirms that we are on the right track," comments Reinhard Loose, Chief Financial Officer at MLP SE.

An overview of key figures

Definitions of key figures can be found on our website: https://mlp-se.com/investors/mlp-share/key-figures/

About MLP

The MLP Group and its brands Deutschland.Immobilien, DOMCURA, FERI, MLP, RVM and TPC is the financial services provider for private, corporate and institutional clients. Special added value is created by networking the various perspectives and areas of expertise – enabling clients to reach better financial decisions. To this end, the MLP Group competently combines personal and digital offers. Several of the brands also offer selected products, services and technology for other financial services providers.

• Deutschland.Immobilien – The real estate platform for clients and financial consultants
• DOMCURA – The underwriting agency for financial consultants and consultant platforms
• FERI – Multi asset investment firm for institutional investors and high net worth individuals
• MLP – Financial consulting and banking for discerning clients
• RVM – Risk manager for insurance and provision for SMEs
• TPC– Benefit expert network for enterprises
   

An intensive transfer of knowledge and expertise takes place within the network. The specialists support one another in the areas of research and concept development, as well as in client consulting. This valuable and targeted interaction generates additional value for clients, as well as for the company and for its shareholders. Economic success also forms the basis for accepting social responsibility.

The Group was founded in 1971 and manages assets of around €63 billion for around 590,700 private and around 28,000 corporate and institutional clients as well as non-life insurance portfolio volumes of around €751 million. In addition to this, more than 10,000 financial services providers take up the services on offer.