Full Year 2025 Momentum Group Ltd Earnings Call Transcript
Key Points
- Momentum Group Ltd (NAM:MMT) reported record normalized headline earnings of ZAR6.26 billion for the financial year, marking a 41% increase from the previous year.
- The company successfully executed a turnaround strategy for Momentum Insure, achieving sustainable profitability with earnings of ZAR458 million.
- Momentum Group Ltd declared a final dividend of ZAR0.90 per ordinary share, resulting in a full-year dividend of ZAR1.75 per share, a 40% increase from the prior year.
- The company has undertaken significant solar energy projects, contributing positively to South Africa's energy landscape and reducing carbon emissions by about 9,000 tonnes per year.
- Momentum Group Ltd's return on equity (ROE) reached 21.2%, surpassing the F '27 target of 20% and positioning it as one of the highest in the industry.
- Group Value of New Business (VNB) deteriorated by 20%, from ZAR589 million to ZAR469 million, which was a disappointing aspect of the results.
- Overall, the group's new business margin declined from 0.7% to 0.6%, falling short of the targeted range of 1% to 2% by F 2027.
- Sales volumes decreased by 3% to ZAR79.8 billion, with a significant 24% decline in sales volumes for Momentum Corporate.
- The Africa business faced challenges, with negative market variances and increased expense reserves impacting earnings.
- The company's venture capital funds experienced a mark-to-market write-down of ZAR231 million, reflecting a challenging VC market.
Good morning. And some other events when they announce it before you start, makes say, please, can we take your seats. People still run for their coffee and stuff. Today, as soon as the announcement went to say, please take your seats, everybody was seated. It's a good day, I guess.
My name is Dan Moyane, just in case you forgot it. It's my great pleasure to welcome you to the presentation of the Momentum Group's annual financial results for the period ended 30 June 2025.
We're going to give a special welcome to our analysts, to our investors, our shareholders, the media journalists as well who are with us. And of course, let's not forget our employees. We are all joining us live whether they are watching on e-mpulse, which is our company's Internet on BDTV Channel 412, that's on DStv or you can be watching via our live webcast which is on corpcam.com. You have to follow that, and you'll find it there. By the way, the full results are also available on the group's website, which is momentumgroupltd.co.za.
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