• Strong profit growth and improved book quality
• Transitioning to longer-term, lower-cost lending solutions
• Expanding luxury retail footprint using AI-enabled authentication

Cash Converters International Limited reported strong financial results for the first half of fiscal year 2025, demonstrating the success of its strategic initiatives. Gross profit increased by 9% year-on-year to $123.3 million, driven by sustained revenue growth and a reduction in bad debts due to improved credit quality. The company's net loss rate decreased to 7.3%, down from 9% in the prior corresponding period, reflecting its investment in advanced credit risk models. EBITDA grew by 10% to $36.3 million, and net profit increased by 21% to $12.1 million, aligned with the company's strategy to acquire franchise stores and build a long-term, lower-cost loan portfolio. The company's gross loan book declined by 5% from June 2024 to $274.4 million, as it transitions away from small and vehicle loans towards longer-term, lower-cost lending solutions. Cash and cash equivalents increased by 17% year-on-year to $57.3 million, providing funding capacity for growth. The company continues to focus on strategic franchise store acquisitions in Australia and the UK, with a pipeline of opportunities under review. It is also expanding its luxury retail footprint, with the opening of a new luxury-focused store in Bondi Junction that has received positive customer feedback.

The company is targeting further franchise store acquisitions in Australia and the UK to strengthen its market position, with each new store expected to contribute to positive earnings per share uplift within the first year. It is also focused on growing its lower-cost lending products, leveraging machine learning credit risk models to enhance risk assessment and lending efficiency, and expanding its luxury retail footprint using AI-enabled authentication.

Cash Converters is well-positioned for continued earnings growth and shareholder returns, with a strong balance sheet, available cash, and undrawn funding lines to support its expansion plans. The company is committed to consistent dividends, backed by solid operating profit and cash flow generation.