Naspers Delivers US$836m Free Cash Flow Improvement, 18% Revenue Growth and Ecommerce Profitability
CAPE TOWN, South Africa--(BUSINESS WIRE)--June 24, 2024--
Naspers Limited (Naspers) (JSE: NPN): It has been a standout year for the Group. Naspers simplified its Group structure, delivered improvements across all core performance metrics and achieved Ecommerce profitability six months ahead of target. Operating businesses have performed well, accelerating profitable growth, while the open-ended buyback programme continues to deliver value for our shareholders every day. The rapid deployment of AI-led technologies across the Naspers ecosystem is generating real results and will set the next frontier of value creation for the Group. Naspers has a strong balance sheet and is well positioned to generate improved returns through smart and disciplined capital allocation, driving value for all stakeholders.
On 17 May 2024, the Board announced the appointment of Fabricio Bloisi, former iFood CEO, as Prosus and Naspers Group CEO, effective from 1 July 2024. Ervin Tu, Interim Group CEO, will become Group President and Chief Investment Officer $(CIO)$.
-- Accelerated peer-leading topline growth of 18%, with Ecommerce
consolidated revenue of US$6.3bn.
-- Achieved consolidated Ecommerce profitability ahead of target, with a
US$460m1 improvement in trading profit to US$24m.
-- Free cash flow increased US$836m to US$477m, a 2x improvement
year-on-year.
-- US$35bn of value created by the ongoing buyback programme since launch,
delivering 9% NAV per share accretion.
-- Group structure simplified through the removal of the cross-holding
agreement between Prosus and Naspers.
Ervin Tu, Interim Group CEO, Prosus and Naspers, commented: "We have made substantial progress this year in delivering against our strategy. Our Ecommerce portfolio is profitable for the first time ever, and our ongoing buyback has created significant shareholder value. We also reorganised the Group, bringing us closer to our businesses so that we can enhance their performance further. AI continues to be the highest priority, and our in-house AI expertise, combined with our implementation of AI in practice across our entire portfolio, are distinct competitive advantages. AI is instrumental to our efforts in building and investing behind the next wave of technology leaders."
Fabricio Bloisi, incoming Group CEO, Prosus and Naspers, said, "These results illustrate the amazing progress we've made, as well as our future potential. Prosus operates in some of the world's most dynamic markets and through our technology ecosystem, we can make a real difference to the lives of our more than two billion customers. In June, I've learnt more about our business and I'm even more excited about the potential to further leverage our ecosystem and keep improving our results. I'm confident in our ability to innovate, collaborate and lead within existing and new sectors, and to grow our businesses' profitability. I begin on 1 July 2024 and am excited about the enormous potential that I see to generate long-term value for all our stakeholders."
Group performance
Consolidated results for continuing operations ------------------------------------------------------------- Group FY2024 FY2023 YoY change ------------------------- ---------- ---------- ---------- Revenues US$6.4bn US$6.0bn 17% ------------------------- ---------- ---------- ---------- Adjusted EBITDA (US$3m) (US$498m) n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) (US$154m) (US$640m) 74% ------------------------- ---------- ---------- ---------- Core headline earnings US$2.1bn US$1.1bn 88%(1) ------------------------- ---------- ---------- ---------- Ecommerce portfolio ------------------------------------------------------------- Revenues US$6.3bn US$5.8bn 18% ------------------------- ---------- ---------- ---------- Adjusted EBITDA US$161m (US$308m) n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) US$24m (US$436m) 109% ------------------------- ---------- ---------- ---------- Food Delivery ------------------------------------------------------------- Revenues US$1.2bn US$1.4bn 22% ------------------------- ---------- ---------- ---------- Adjusted EBITDA (US$77m) (US$94m) n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) US$67m (US$106m) 161% ------------------------- ---------- ---------- ---------- Classifieds ------------------------------------------------------------- Revenues US$707m US$519m 27% ------------------------- ---------- ---------- ---------- Adjusted EBITDA US$187m US$73m n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) US$172m US$56m 182% ------------------------- ---------- ---------- ---------- Payments & Fintech ------------------------------------------------------------- Revenues US$1.1bn US$903m 38% ------------------------- ---------- ---------- ---------- Adjusted EBITDA (US$23m) (US$77m) n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) (US$31m) (US$83m) 81% ------------------------- ---------- ---------- ---------- Edtech ------------------------------------------------------------- Revenues US$148m US$134m 9% ------------------------- ---------- ---------- ---------- Adjusted EBITDA (US$91m) (US$122m) n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) (US$98m) (US$131m) 25% ------------------------- ---------- ---------- ---------- Etail ------------------------------------------------------------- Revenues US$2.2bn US$1.9bn 8% ------------------------- ---------- ---------- ---------- Adjusted EBITDA US$46m (US$1m) n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) (US$49m) (US$83m) 42% ------------------------- ---------- ---------- ---------- Economic interest results from continuing operations ------------------------------------------------------------- Group ------------------------------------------------------------- Revenues US$32.7bn US$32.4bn 12% ------------------------- ---------- ---------- ---------- Adjusted EBITDA US$7.0bn US$5.0bn n/a ------------------------- ---------- ---------- ---------- Trading profit / (loss) US$5.8bn US$3.6bn 84% ------------------------- ---------- ---------- ----------
Basil Sgourdos, Group CFO, Prosus and Naspers, commented: "Following a year of strong execution, our Ecommerce portfolio is profitable for the first time, well ahead of target. What's more, our peer-leading growth accelerated, and profitable growth is set to continue. Core headline earnings almost doubled, and our strong Ecommerce results and performance at Tencent have driven a threefold increase in free cash flow. Our strong and flexible balance sheet, active portfolio management and disciplined capital allocation put us in strong position to deliver against our long-term strategy."
Peer-leading growth and increasing profitability across Ecommerce portfolio
Food Delivery: iFood grew well and significantly improved profitability
-- iFood delivered industry-leading top line growth, with Gross
Merchandise Value $(GMV.AU)$ up 20%, orders up 18% and revenue increasing
22%.
-- iFood's core restaurant business almost tripled trading profit to
US$260m, with a 24% trading margin.
-- Overall, iFood trading profit increased significantly to US$96m, up
249%, supported by optimised marketing spend and increased cost control.
-- Delivery Hero grew group GMV by 6% for the year ended 31 December 2023,
with revenue up 16%, boosting profitability to an adjusted EBITDA of
EUR254m.
-- Swiggy grew Gross Order Value (GOV) by 26%, as operating metrics
improved, and adjusted EBITDA improved to a loss of US$261m.
Classifieds -- OLX Group: Strong performance, with accelerated growth and expanding margins
-- Classifieds consolidated revenue grew 27%, driven by a strong
performance in OLX Europe, notably in the motors category, and a recovery
in OLX Ukraine.
-- Trading profit more than tripled to US$172m, with trading profit margin
increasing 13 percentage points, to 24%.
-- Performance driven by streamlining of operations, more effective
marketing spend and strategic optimisation of technology hubs.
-- Exited OLX Autos businesses (excluding the US).
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