Metair Investments (MTA) H1 2025 earnings summary

Executive summary

• Revenue increased 53% year-over-year to ZAR 8.66 billion, driven by stable OEM volumes, strong demand in Romania, and the inclusion of Hesto and AutoZone.

• EBITDA rose 40% to ZAR 716 million, and EBIT grew 27% to ZAR 450 million, with EBIT margin slightly down to 5.2%.

• Headline earnings per share improved from a loss of ZAR 0.03 to ZAR 0.65, reflecting operational turnaround and restructuring benefits.

• Portfolio reshaped through consolidation, cost-cutting, closure of non-core operations, and strategic realignment including the sale of Mutlu Akü and acquisition of AutoZone.

• Debt restructuring completed, providing a sustainable capital structure and better-aligned repayment terms.

Financial highlights

• Revenue: ZAR 8.66 billion, up 53% year-over-year.

• EBITDA: ZAR 716 million, up 40%; EBIT: ZAR 450 million, up 27%.

• Headline EPS: ZAR 0.65 (vs. loss of ZAR 0.03 prior year); continuing operations at ZAR 0.71.

• Net debt: ZAR 5.1 billion, reflecting Hesto consolidation.

• Net asset value per share: ZAR 13.01 (down from ZAR 13.88 at Dec 2024).

Outlook and guidance

• Focus on operational improvement, cost control, and agile business models, with margin enhancement and improved returns on invested capital.

• AutoZone targeted to break even at EBIT level for the full year, with growth expected from 2026.

• FY2026 expected to be challenging due to customer right-sizing, new vehicle launches, and manufacturing optimisation.

• Cautiously optimistic for FY2025, targeting growth through product expansion and new sales channels, and exploring African market opportunities.