We Buy Cars (WBC) H2 2024 earnings summary

Executive summary

• Achieved record profitability with core headline earnings up 23.4% to ZAR 815.4 million and revenue up 16.5% to ZAR 23.3 billion, driven by higher sales volumes, average selling prices, and operational efficiencies.

• Listed on the JSE in April 2024, incurring one-off listing costs, restructuring share capital, and derecognizing a R426.5 million call option derivative asset.

• Expanded national footprint to 16 supermarkets and 83 buying pods, increasing workforce to 3,140 employees and 381 buyers.

• Declared maiden dividend of ZAR 25 cents per share, with a total payout of R3.4 billion including pre-listing and scrip dividends.

Financial highlights

• Core headline earnings per share rose 9.9% to 217.4 cents, diluted by new share issuance.

• EBITDA increased 15.1% to ZAR 1.32 billion; core operating profit up 18.6% to ZAR 1.22 billion.

• Net debt reduced by 8.5% to ZAR 1.1 billion; net cash from operating activities up 1.6% to ZAR 591.4 million.

• Gross margins maintained despite inflation and high interest rates.

• Total assets at R4.19 billion; group gearing ratio at 0.91x.

Outlook and guidance

• Targeting sales of 23,000 vehicles per month by 2028, supported by ongoing expansion and digital investments.

• Ongoing property expansion with new sites in East London, Rustenburg, Montana, Pietermaritzburg, Vereeniging, and Mbombela.

• Focus on digitisation, including IT enhancements, virtual assistant launch, and new finance application modules.

• Dividend policy targets 25–33% of headline earnings payout, with interim and final dividends planned annually.

• Sufficient liquidity and borrowing facilities in place to support future growth and expansion.