Despite the negative effects of COVID-19 on businesses globally, Fintech Company, Zeepay, has recorded a 146% rise in compound annual growth rate (CAGR) in 2020.
This comes amid predictions of a decline in remittance inflows to Africa.
Zeepay further increased its sales volume to US$400million for the period,.
Speaking on the sidelines of the company’s Annual General Meeting in Accra, Managing Director of Zeepay, Andrew Takyi-Appiah, attributed the increase to the company’s focus on innovation and technology.
“During the period our gross profit margin dropped from 88% in 2019 to 82% in 2020, while our operating profit margin or earnings before interest and tax (EBIT) margin increased from 28% in 2019 to 40% in 2020. This is evidenced in an increased net profit margin from 10% in 2019 to 26% in 2020.
“In the same year, our earnings per share (EPS) increased to GH¢42 from GH¢4 in the previous year. In 2020, we recorded earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 43% from 36% in 2019. This translated into GH¢6,909,118 in 2020 against GH¢1,477,817 the previous year, and a total comprehensive income of GH¢4,170,558 for the year under review,” he said.
Mr. Takyi-Appiah also noted, that Zeepay posted a strong balance sheet position of GH¢68million in 2020 compared to GH¢15million in 2019 despite socioeconomic effects of the pandemic. Also, its return on assets improved by 3% year-on-year. Again, the company’s total equity position saw a mammoth jump – from GH¢1million GH¢21million within a year, which translated to its debt-to-capital dropping to 5% for FY2020 against 64% in FY2019.
He said that the scale-back of operations and shrewd management throughout the pandemic ensured that Zeepay experienced growth and fully implemented its 5-year growth strategy – Project Sprint.
“This was partly achieved through the discipline we employed to be more efficient and to reduce operating costs while working hard to achieve our objectives. Brexit alone was a challenge, because it meant that the company had to reapply for licence across the European Union states.
Although remittance inflows declined globally, performance within Zeepay’s critical markets remained strong in 2020 as it resorted to synergies and the use of multiple strategies with partners – such as a free online service with MoneyGram International, Inc. for Ghana and Small World Money Transfer for Uganda,” he said.
Mr. Takyi-Appiah also noted that the company further continued its focus on international expansion and managed to serve eight active corridors with 30-day business at the height of the pandemic.
“The most challenging period was the first quarter of 2020, during which we experienced a temporary decline in service caused by an immediate impact of COVID-19 on our partners. We however managed to steer in the waters by end of the second quarter; partly by increasing trading lines and launching aggressive marketing campaigns across multiple jurisdictions,” the Managing Director stated.