We Buy Cars (WBC) H2 2025 earnings summary

Executive summary

• Achieved 15% growth in core headline earnings to ZAR 937.6 million for FY 2025, with revenue up 13.1% to ZAR 26.4 billion, and EBITDA up 13.1% to ZAR 1.49 billion, despite a challenging consumer environment and increased competition from new Asian brands.

• Operating profit increased 9.7% to ZAR 1.34 billion, and final dividend per share grew 20% to ZAR 0.30, representing 29% of headline earnings for H2.

• Strategic inventory and pricing adjustments in H2 protected liquidity and positioned the business for future growth.

• Expanded national footprint with 23 new buying pods and two new supermarkets, increasing units bought and sold by 7.7% and 8.4% respectively.

• Launched Inspectify, an in-house vehicle inspection platform, and advanced digital and AI-driven initiatives to enhance operational efficiency and customer experience.

Financial highlights

• Core headline earnings: ZAR 937.6 million, up 15% year-over-year.

• Revenue: ZAR 26.4 billion, up 13.1% year-over-year, driven by higher volumes and average selling prices.

• EBITDA: ZAR 1.49 billion, up 13.1%; operating profit: ZAR 1.34 billion, up 9.7%.

• Net cash from operating activities: ZAR 677.3 million, up 14.5% year-over-year.

• Net interest-bearing liabilities rose 20.7% to ZAR 1.4 billion, with a conservative gearing ratio of 0.95 and interest cover ratio of 30.95.

Outlook and guidance

• Confident in continued growth, supported by investments in technology, infrastructure, and talent.

• Expansion plans include new supermarkets in Montana, Lansdowne, and Witbank, increasing display capacity by over 20%.

• No anticipated need for capital raise; business remains highly cash-generative and conservatively geared.

• Targeting 23,000 vehicles bought and sold per month by FY 2028, with parking bays projected to reach 17,175 by 2027.

• Ongoing property development and expansion with new supermarkets and buying pods planned.