Momentum FY HEPS up 39%

Momentum, a prominent investment and insurance group, has announced a remarkable 32 per cent jump in its normalised headline earnings per share. This significant increase was largely attributed to a R500 million share buyback programme that the company implemented during the year. Looking ahead, Momentum's board has approved another share buyback of R1 billion for the coming year, indicating confidence in the company's financial performance. Jeanette Marais, the Group CEO at Momentum, discussed these positive developments and the company's operational performance during the year under review. Marais highlighted the impressive contribution from all of the company's businesses to its earnings, demonstrating a strong turnaround in previously struggling sectors such as Metropolitan and Momentum Shure. The company also achieved record sales numbers, despite challenging economic conditions, reflecting six years of strategic investments. However, Marais acknowledged areas of concern, particularly focusing on the value of new business and new business margin. She emphasized the importance of cost optimization to address these challenges and enhance overall performance. Marais shared insights into the company's cost optimization strategy, emphasizing the need to eliminate duplication and improve efficiency across business units. While discussing potential cost-saving measures, Marais reassured that there were no immediate plans for staff cuts. Furthermore, Marais addressed the impact of consumer constraints on the company, highlighting the significant number of withdrawal applications received by Momentum. Despite processing over 2 billion rand in payments, Marais anticipates a potential increase in withdrawal requests leading up to Christmas and the new financial year in March. The company has implemented digital solutions to streamline the withdrawal process and accommodate client needs efficiently. In terms of future prospects, Marais expressed enthusiasm for growth opportunities in India while reaffirming the company's commitment to its South African roots. Momentum's India business is poised for growth, with a focus on reaching break-even levels in the next two years. However, the company remains deeply rooted in South Africa, emphasizing the need for collaborations with the government and private sector to drive economic growth and stability. Overall, Momentum's strong financial results, strategic investments, and focus on cost optimization underscore its resilience and commitment to long-term success amidst challenging market conditions.