Homechoice International increased topline revenue by 21% to R4.4 billion in the year to December 31 and pre-tax profit was 31.2% higher at R517 million, a standout performance considering the preponderance of single-digit performances of JSE’s large retailers and financial services groups recently.

The digital payments and lending solutions and omni-channel homeware retail group’s subsidiary Weaver Fintech continued to grow well, with revenue and profit compound annual growth rates of over 30% over five years. Considering it is gaining some 100 000 new customers per month, it is likely to continue to outpace the market in the new financial year, said CEO Sean Wibberley.

The price of Homechoice’s tightly held shares increased by 3.57% to R29 on the JSE Tuesday morning. Wibberley said in an online interview that while they occasionally look into interest from potential suitors and ways to improve the share’s liquidity, there was no guidance on this stage, and their focus is squarely on growing the business.

Weaver’s customer base, more than 70% women, has grown to 3.1 million, up 53% from 2023. The Retail division’s showroom expansion helped to drive up retail sales by 8.3% to R1.3bn. Wibberley said most customers’ first point of entry into the group is through the buy-now-pay-later product that includes over 2 800 merchants.

Weaver delivered 92% of the group profit before tax (before costs) at R561m, up 31.6%.

Digital lending products increased 31.2% to R6.4bn in disbursements in 2024. Repeat customers make up 85% of loans disbursed, enabling effective credit risk management.

Wibberley said the launch of the Pay Stretch product late last year, an interest and fee-bearing facility that provides an ability to split payments over 12 months and dynamic signing-on at the tills, was expected to boost growth in the new year. Other new product developments, such as extended repayment periods, would be launched.

Weaver’s stand-alone funeral and new personal accident insurance drove fee income and delivered cross-sell opportunities in the past year. Gross written premiums (GWP) increased 23% to R182m - 41% of new policies are acquired end-to-end through digital channels, from 36% in 2023, reducing the cost of acquisition and improving the customer experience.

Weaver’s digital payments business saw Gross Merchandise Value (GMV) increase 157.1%, with 2.4 million signed-up customers, making it the dominant buy now pay later business in South Africa.

The merchants that are part of Weaver’s ecosystem span online and in-store points of sale at well-known national retailers.

“We are investing significantly in technology and data in our digital payments business and our lending solutions, building a financial platform that customers trust,” said Wibberley.

Retail increased revenue 6.7% to R1.9bn, with profit before tax up 85.2% to R50m. Sales growth in the second half “was particularly notable, increasing by 15%.” Supply chain efficiencies and a clear focus on the heritage bedding business delivered an additional 270 basis points in gross profit.

Expanding the showroom channel footprint, along with bespoke digital chat services, were key to growth and new customer acquisition - 16 new showrooms were opened in 2024, with the new smaller formats delivering double-digit margins and under two-year payback, said Wibberley.

The 37 showrooms contributed 26% in sales (up from 17% last year). Retail anticipated opening a further 22 showrooms this year, with the longer-term potential to reach 100.

"Our strategy is delivering robust growth. Retail’s omni-channel strategy has positioned the business for strong profit growth. Weaver’s digital ecosystem thrives on innovation—seamlessly integrating merchants, customers, and our range of financial products to make access to credit and payments convenient, cashless, and inclusive,” he said.

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