Weaver Fintech (WVR) H1 2024 earnings summary

Executive summary

• Group profit increased 36% year-over-year to ZAR 388 million, driven by strong Weaver Fintech performance and digital adoption, with revenue up 15% to ZAR 2.0 billion and cash collections up 32% to ZAR 5.2 billion in H1 2024.

• Interim dividend declared at ZAR 0.95 per share, up 36%, with EPS and headline EPS up 37% to 196.9 cents.

• Customer base grew to 2.5 million, up 51% year-over-year, with digital transactions now comprising nearly 90% of all activity and 1.8 million monthly digital users.

• Retail segment returned to growth, with gross margin improvement and showroom expansion, though retail customer base declined 10% due to prior credit tightening.

• Digital transactions and engagement surged, with app users doubling to 1.4 million and 13 million customer interactions in six months.

Financial highlights

• Operating profit rose 36.1% to ZAR 388 million; profit after tax up 35% to ZAR 203 million.

• Weaver Fintech contributed 95% of group operating profit, with revenue up 31% to ZAR 1.14 billion.

• Fee income in fintech up 45%, now 36% of revenue; BNPL GMV up 174% to ZAR 1.5 billion.

• Retail sales grew 2% to ZAR 604 million, with gross margin improving by nearly 200 basis points to 45.5%.

• Cash collected increased 32% to ZAR 5.2 billion; net debt increased 29.2% to ZAR 2.35 billion, reflecting investment in fintech growth.

Outlook and guidance

• Momentum from H1 is continuing into the second half of the year, with ongoing focus on digital ecosystem, cross-selling, and new product launches.

• No plans for capital raising; funding to continue through debt.

• Retail business expected to grow as credit and fraud systems stabilize, with continued cash generation.