We Buy Cars (WBC) H1 2025 earnings summary

Executive summary

• Achieved strong interim results for the six months ended 31 March 2025, with core headline earnings up 26.4% to R508.2 million and revenue up 15.2% to R13.1 billion, driven by volume growth, improved margins, and operational efficiency gains.

• Units sold rose 13.5% to 91,392, supported by network expansion and robust demand.

• Interim dividend declared at 30 cents per share, calculated at 25% of headline earnings.

• Expanded national footprint with new supermarkets and buying pods, and employee count increased to 3,283.

• Ongoing investment in technology and digital platforms enhanced operational efficiency and customer engagement.

Financial highlights

• Adjusted EBITDA up 20.4% to R800.2 million; core operating profit up 19.8% to R730.3 million.

• Net cash from operating activities increased 6.4% to R284.1 million; cash conversion at 56%.

• Net interest-bearing liabilities at R1.3 billion, up 13.1% year-over-year; group gearing ratio at 0.95, within covenant limits.

• Inventory value up 30.8% and property, plant, and equipment up 32.8% due to expansion.

• All-time record adjusted EBITDA, core operating profit, and core headline earnings for the period.

Outlook and guidance

• Plans to open new supermarkets and expand capacity in Vereeniging, Lansdowne, and Montana, targeting 23,000 vehicles bought and sold per month by FY2028.

• Targeting 200 buying pods within 2-4 years to further increase vehicle acquisition.

• Focused on leveraging data analytics, automation, and digitalization to drive operational efficiency and customer experience.

• Anticipates continued consumer affordability pressures but expects to benefit from the shift toward affordable vehicles.

• Cautiously optimistic outlook amid evolving political and global economic conditions.