HomeChoice eyeing new products as profit lifts amid customer surge

JSE-listed omni-channel retailer HomeChoice International says robust demand for its financial services products helped lift its operating profit by over a quarter in 2023, and it's upbeat about rolling out new products even as SA consumers struggle.

HomeChoice, valued at about R2.3 billion on the JSE, reported on Tuesday that revenue edged up only slightly to R3.7 billion in its year to end-December, but operating profit grew 28% to R619 million. Higher finance costs weighed, and headline earnings only picked up about 7% to R323 million. But the group also reported a 39% surge in customer numbers to just over 2 million, despite more conservative lending practices.

Its legacy home shopping channel initially gave life to the group 38 years ago, but it also offers products through Weaver Fintech. This includes digital personal lending, value-added services and insurance products using mobile-first platforms. Its primary customer base is a digitally connected urban African woman and 60% are millennials or GenZ.