Weaver Fintech (WVR) H2 2024 earnings summary

Executive summary

• Group revenue increased 21% year-over-year to R4.4bn, with profit before tax up 31% to R517m, driven by strong fintech momentum and a resurging retail business.

• Customer base grew 53% to 3.1 million, with 90% of transactions conducted digitally; headline EPS up 27.3%.

• Fintech (Weaver) is the main growth engine, contributing 92% of segmental profit before group costs, with strong performance in digital lending, payments, wallets, and insurance.

• Retail transformation delivered 8.3% sales growth and 22.6% operating profit increase, driven by showroom expansion.

• Dividend per share increased 17%, reflecting robust profitability and cash generation.

Financial highlights

• Total revenue: R4.4bn (+21% YoY); operating profit: R820m (+32.5% YoY); profit before tax: R517m (+31% YoY); net income: R411m (+25.7% YoY).

• Fintech revenue up 34% year-over-year; fee income now 36% of fintech revenue, more than doubling to ZAR 269 million.

• Cash collections reached R12.1bn, averaging R1bn per month; available funding at R1.2bn.

• Gross profit margin improved by 2.7 percentage points to 45.7% due to merchandise and supply chain efficiencies.

• Net debt/equity increased to 72% due to additional funding for growth.

Outlook and guidance

• Fintech business expected to continue outpacing the market, with strong momentum in cross-sell, embedded products, and product innovation.

• Retail to accelerate showroom rollout, targeting 100 locations by FY2027 and leveraging digital and showroom strategies.

• Trading results to February 2025 remain strong and in line with management expectations.

• Fee-generating activities to be further emphasized, reducing sensitivity to interest rate changes.