Let’s take a closer look.
The post Humm (ASX:HUM) share price dips on FY21 results appeared first on The Motley Fool Australia. –
Shares in the buy-now-pay-later (BNPL) have dipped lower as investors digest the company’s financial results for the full year.
Let’s take a look at how Humm performed for the full year.
How did Humm perform for the full-year?
Humm’s full-year report for FY21 was headlined by a 121.1% increase in net profit after tax (NPAT) of $68.4 million.
The BNPL player also reported a 160.2% increase in statutory NPAT of $60.1 million, in comparison to a net profit of $23.1 million last year.
Humm noted that revenue for the full-year dropped 7.3% to $443.9 million. The company cited the drop in volumes at its cards businesses, which it said reflected the impact of COVID-19 on sectors including travel.
For the full-year, the company reported total transaction volume of $2.7 billion, an 8.2% increase from last year.
Humm was also able to grow its total active customers by 19.7% to 2.7m as at 30 June 2021. App downloads also jumped 75.8% to 1.2 million.
The company’s BNPL segment was a standout performer, with BNPL volume rising 31% to $1.03 billion.
In addition, Humm’s commercial and leasing volume also increased 55.6% for the year to $540.3 million.
Humm also noted a strong balance sheet, highlighting a cash balance of $108 million.
Despite its net cash position, the company opted to not pay a dividend in FY21 for a third straight reporting period.
Outlook for the Humm share price
Humm highlighted that the company has numerous growth initiatives underway including international expansion, new product growth and new partnerships.
The BNPL player will host an investors day on the 27th of October 2021 where it will provide a full strategic update alongside volume and other measures for FY22.
Humm’s Chief Executive Officer highlighted the company’s improved brand awareness, stating:
The benefits of the rebrand are clear. Nearly one in five customers now uses humm for both big and little purchases. A quarter of our Bundll customers also have Humm to complement their everyday spend. We have created a new digital shopfront of products that caters to a wide shopping spectrum and our Australian customers are now using our products 19 times on average per year.
Despite meeting guidance, the Humm share price has sunk more than 2% in early trade. At the time of writing, shares in the BNPL player are trading at 92 cents.
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.