Zip Co Limited - 4Q24 Quarterly Cash Flow Report - 30 July 2024
ZIP (ZIP) Share Update July 2024 Monday 29th
Zip Co Limited Reports Strong Cash Flow in 4Q24
Zip Co Limited (ASX: ZIP) has released its Appendix 4C Quarterly Cash Flow Report for the fourth quarter of 2024, showcasing a strong cash flow performance and significant financial activities.
Instant Summary:
- Net cash from operating activities: $65.2 million for the quarter.
- Total cash and cash equivalents at the end of the period: $353 million.
- Proceeds from borrowings: $583.2 million.
- Repayment of borrowings: $621.1 million.
- Net cash used in financing activities: -$38.6 million.
Operating Activities
Zip Co Limited reported net cash from operating activities of $65.2 million for the fourth quarter of 2024. This includes receipts from customers totaling $224 million and payments for advertising and marketing amounting to $9.8 million.
Staff costs for the quarter were $40.3 million, while administration and corporate costs stood at $50.1 million. Interest received was $1.7 million, and interest and other finance costs paid were $59.7 million. The net movement in customer receivables was -$14.4 million, and the net movement in settlement with payment partners was $16.9 million.
Investing Activities
In terms of investing activities, Zip Co Limited reported a net cash inflow of $0.3 million. This includes payments for intellectual property amounting to $3.3 million and proceeds from the sale of receivable loans totaling $3.2 million.
Financing Activities
The company saw significant activity in its financing operations, with proceeds from borrowings reaching $583.2 million and repayments of borrowings totaling $621.1 million. Net cash used in financing activities was -$38.6 million for the quarter. Additionally, Zip completed several refinancing activities, including a $300 million rated note issuance and a new $300 million warehouse facility.
Cash Position
At the end of the fourth quarter, Zip Co Limited had total cash and cash equivalents of $353 million, up from $327.2 million at the beginning of the period. The company also reported an effect of movement in exchange rates on cash held of -$1.1 million.
Future Outlook
With a strong cash position and significant financing facilities available, Zip Co Limited is well-positioned to continue its operations and meet its business objectives. The company has $353.1 million in unused financing facilities available at the quarter's end, providing ample liquidity for future growth and investment opportunities.
The strong cash flow performance and robust cash position are likely to positively impact Zip Co Limited's stock price. Investors may view the company's ability to generate significant cash from operations and manage its financing activities effectively as a sign of financial strength and stability.
Investor Reaction:
Analysts are likely to react positively to Zip Co Limited's strong cash flow performance and solid financial position. The company's ability to secure significant financing and manage its debt repayments effectively may boost investor confidence and support a positive outlook for the stock.
Conclusion:
Investors should keep an eye on Zip Co Limited's future financial performance and strategic initiatives. The company's strong cash position and effective management of financing activities provide a solid foundation for continued growth and success. Consider subscribing to our newsletter for regular updates and in-depth analysis of Zip Co Limited and other stock market news.