Humm Result

Humm Group announced its financial results for the first half of the fiscal year 2024

Humm Group announced its financial results for the first half of the fiscal year 2024, highlighting a mix of strong growth in receivables alongside challenges due to increased interest expenses and a statutory net loss. Here are five key highlights from their announcement:

  1. Growth in Receivables: Total receivables reached $4.65 billion, marking a 23% increase compared to the previous corresponding period (pcp). This growth was driven by a 39% increase in commercial receivables to $2.70 billion and a 6% increase in consumer finance receivables to $1.95 billion.

  2. Profitability Amidst Rising Interest Rates: The Normalised Cash Profit (after tax) for 1H24 was $28.1 million, down 27% on pcp. This decline comes despite significant challenges such as a material increase in interest rates and costs associated with rebuilding the PosPP offering. The commercial sector underpinned this profit, showcasing resilience.

  3. Impact of Increased Interest Expenses: The Normalised Cash Profit was significantly impacted by an increased interest expense of $61.7 million due to the rise in receivables, base rates, credit spreads, and the optimization of funding structures. This represents an 88% increase over the pcp.

  4. Cost Management and Efficiency Measures: Humm Group executed an additional $7.5 million in cost savings during the first half, bringing total savings to $26.1 million since the program began in 1H23. These savings helped mitigate some of the effects of reinvestment in customer-facing roles and the broader inflationary pressures.

  5. Dividend and Share Activity: The company proposed a fully franked interim dividend of 0.75 cents per share. Additionally, it purchased 20.9 million shares, approximately 4.0% of shares on issue, through buybacks and share plans as of the report's date.

This announcement is a summary of the company approved ASX announcement on 20/2/2024 and is based on facts.