humm Group's 1H24 Financial Results

humm Group Limited (ASX: $HUM) has reported its half year 2024 results, with total receivables reaching $4.65b, marking a 23% increase from the prior corresponding period (pcp). The Commercial receivables saw a substantial 39% surge to $2.70b, while Consumer Finance receivables grew by 6% to $1.95b. The 1H24 Normalised Cash Profit (after tax) stood at $28.1m, reflecting a 27% decrease from pcp, primarily attributed to a significant rise in interest rates and the rebuilding of the PosPP offering.

Executive Commentary on 1H24 Performance

humm Group's Chief Executive Officer and Managing Director, Stuart Grimshaw, highlighted the company's robust performance amidst challenges, including a notable $61.7m increase in interest expense. The Commercial business demonstrated impressive growth, with receivables increasing by 39% and maintaining a historic low Net Credit Loss/ANR of 0.5%. Grimshaw also emphasized the strategic focus on refocusing and rebuilding the Consumer businesses in New Zealand and Australia, aiming to enhance customer experience and improve unit economics and merchant profitability. The commitment to a dividend payout ratio of 30%-40% of Free Cash Flow resulted in a proposed fully franked interim dividend of 0.75 cents per share for 1H24.

Summary of 1H24 Results and Outlook

humm Group's 1H24 results showcased significant growth in total receivables, particularly in the Commercial segment, and a commendable Normalised Cash Profit of $28.1m despite the challenges posed by increased interest expenses. The company's strong balance sheet, cost management initiatives, and proposed dividend payout ratio demonstrate its resilience and commitment to delivering shareholder value. Looking ahead, hummgroup aims to drive profitable growth, refocus its Consumer operations, and leverage its strategic capital initiatives to continue delivering value to its shareholders in the future.