HomeChoice International H1 revenue flat at R1.8bn

HomeChoice International, a leading retail and financial services company, recently released its financial results for the first half of the year. The company reported flat revenue growth of R1.8 billion in the six months to June. However, operating profit surged by 25 per cent to R285 million, driven by the significant increase in demand for loans and buy now pay later payment options within the group. Sean Wibberley, the Chief Executive Officer of HomeChoice International, joined CNBC Africa to discuss the company's performance in detail. Wibberley highlighted the challenging consumer environment that has impacted both the retail and financial services segments of the business. The retail business has been struggling to recover from the effects of COVID-19 and has been further hampered by factors such as a weakening Rand and load shedding. On the other hand, the financial services business, particularly the buy now pay later and lending segments, has experienced strong growth, with 95% of the group's results attributed to this sector. The buy now pay later payment options have been particularly popular as consumers seek more affordable ways to make purchases amidst economic constraints. Additionally, the lending side of the business has seen an increase in demand for personal loans and credit facilities, with customers using the funds for a variety of purposes, from school fees to day-to-day expenses. Despite the challenging economic conditions, HomeChoice International has managed to improve its credit performance compared to the previous year. The company's digital-focused approach has allowed it to engage with customers effectively, offering pre-approved short-term credit with affordability buffers to help consumers manage their debt responsibly. Wibberley also discussed the company's plans for the future. For the retail business, HomeChoice International aims to continue its restructuring efforts and focus on growing its digital footprint. The company has implemented smart fulfillment logistics systems to enhance the customer experience and is gradually improving its credit risk management. In contrast, the Weaver FinTech business is poised for significant growth, with plans to expand its customer base and product offerings. HomeChoice International intends to leverage data and digital platforms to personalize offers and enhance customer engagement. The company will also invest in app development and migration to a native app, aiming to provide a seamless and engaging digital experience for its customers. Overall, despite the mixed results in the first half of the year, HomeChoice International remains optimistic about the future, with a strong foundation in place for both its retail and financial services businesses.