Pepper Money's Full Year 2024 Earnings: EPS Exceeds Projections

March 04, 2025 04:07 PM AEDT | By Team Kalkine Media

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Pepper Money's Full Year 2024 Earnings: EPS Exceeds Projections — Image source: Shutterstock

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Highlghts

Revenue reaches AU$386.9m, experiencing a slight dip.

EPS surpasses market expectations, showing resilience.

Future growth anticipated in the coming years.

In its latest fiscal year report, Pepper Money (ASX:PPM) has shared key financial figures that highlight some intriguing developments within the company. With a revenue of AU$386.9 million, the company saw a modest decline of 7.4% compared to the previous fiscal year. Similarly, net income decreased by 11% to AU$98.8 million, reflecting a slight contraction in the profit margin from 27% to 26%, primarily due to reduced revenue.

Interestingly, earnings per share (EPS) emerged stronger than expectations, coming in at AU$0.22, exceeding analysts' estimates by a notable 10%. This indicates that while revenue was largely in line with predictions, the company's efficiency in managing expenses might have played a role in this positive outcome.

A detailed look at the revenue streams reveals that the Mortgages segment remains pivotal, contributing significantly with AU$233.7 million or 60% of the total revenue. On the flip side, General & Administrative costs stood as the largest operational expense at AU$171.4 million, which accounted for 65% of the total expenses.

Looking to the horizon, Pepper Money anticipates average annual revenue growth of 9.7% over the next three years, a stark contrast to the projected 5.4% decline anticipated for the broader Australian Diversified Financial industry. This optimistic outlook could be an encouraging sign for stakeholders interested in long-term performance.

However, it's essential to remain cautious and consider potential risks associated with investing. Pepper Money's share price saw a minor drop of 1.7% last week. Moreover, certain warning signs within the company should be analyzed thoroughly as part of a well-rounded investment strategy.

Pepper Money's FY 2024 figures present a mixed bag of results, the future outlook suggests potential growth, albeit with associated risks that need careful consideration. Investors are encouraged to stay informed and align their strategies with thorough research and market analyses.

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