Humanica Public Company (HUMAN) Q2 2024 earnings summary

Executive summary

• Humanica is Southeast Asia's leading HR solutions provider, serving over 5,000 clients and 2 million employees across 35 countries, with a strong presence in Thailand, Indonesia, Malaysia, Singapore, Vietnam, and the Philippines.

• The company continues to expand through organic growth, M&A, and platform partnerships, recently acquiring DataOn and Tigersoft.

• Humanica's Workplaze platform offers a full-suite, customizable HCM solution with high customer retention and strong user ratings.

• Revenue for the six months ended 30 June 2024 rose to Baht 715.4 million, up from Baht 630.0 million year-over-year, with net profit attributable to owners at Baht 162.3 million, up from Baht 133.3 million.

• The company maintained strong cash flows from operations and continued investments in subsidiaries and associates.

Financial highlights

• Q2 2024 revenue grew by 12% year-over-year, with six-month consolidated revenue up 13.6% to Baht 715.4 million.

• Net profit for the period attributable to owners grew 21.8% year-over-year to Baht 162.3 million.

• Gross profit increased by 9% year-over-year, with gross margin at 51.9% for the six months and 50% in Q2 2024.

• Operating profit rose 25% year-over-year, and EBT increased by 22% year-over-year.

• EPS for the trailing four quarters reached 0.39, up from 0.26 in the prior period; basic and diluted EPS for six months were Baht 0.19, up from Baht 0.15.

Outlook and guidance

• Management emphasizes continued organic growth, targeted M&A, and platform partnerships as key strategies.

• The company is focused on expanding its mid and upper-mid market segment in Southeast Asia, where competition remains low and market growth outpaces the US.

• Ongoing investment in HR SaaS and digital transformation is expected to drive further demand for Humanica's solutions.

• Interim dividend of Baht 0.12 per share to be paid on 11 September 2024, reflecting confidence in ongoing profitability.