Half Year 2024 Pepkor Holdings Ltd Earnings Call Transcript
Key Points
- Revenue growth of 9.5% in the first half of 2024, driven by strong performance in the fintech segment.
- Significant recovery in gross profit margin, particularly in the retail segment, supported by Ackermans' performance.
- Normalized operating profit growth of 8.2%, aligning with revenue growth.
- Successful launch and positive reception of the +more digital channel, with 2.5 million customers signed up within weeks.
- Strong performance in the PEP Africa segment, with nearly 23% total sales growth and like-for-like growth of nearly 25%.
- High living costs, unemployment, and constrained macroeconomic conditions impacting customer spending.
- Increased crime and infrastructure damage, including supply chain disruptions, particularly at Durban port.
- Higher operating expenses, with a notable 48% increase in debtors' costs.
- Challenges in the Ackermans segment, including port disruptions and late impact of winter, leading to constrained growth.
- May 2024 proved to be a challenging month for PEP and Ackermans due to unusually high temperatures affecting sales.
Good day, and welcome to the Pepkor interim results presentation for the first six months ending March 31, 2024. As per usual, I'll briefly do an overview of the results. Riaan, our CFO will unpack the financial performance. Sean will give much more detail on the different business unit performance. And then we'll end up with an outlook and a Q&A session and you're welcome to send in your questions as we go through the presentation.
So again, first half results, we're quite pleased with the revenue growth, specifically our fintech revenue growth and more about that later. We spoke about the increase in the gross margin, the retail margin supported by Ackermans recovery. We've reported a good normalized operating profit growth, we'll normalize slips in there because of some once-off numbers that Riaan will explain in his presentation. And then you will see the normalized EPS growth and still quite high cash conversion.
Our strategy remains the same as we've communicated in the Capital Markets Day. We still
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