ZEDA half-year revenue up 19%

ZEDA, a leading company in the automotive industry, has recently announced strong half-year results, showing a 19% increase in revenue and 7.5% growth in EBITDA. Despite these positive figures, the market reaction was lukewarm, with a slight 0.3% dip in the stock price following the declaration of a Maiden Dividend. However, Ramasela Ganda, the CEO of ZEDA, remains optimistic about the company's performance and future prospects. In a recent interview with CNBC Africa, Ganda discussed the market's expectations, the challenges in the used car market, and ZEDA's expansion plans in sub-Saharan African markets. Addressing the market's reaction to the Maiden Dividend declaration, Ganda explained that while some investors were expecting a share buyback, the company decided to focus on addressing the overhang of shareholders who were looking to exit. Despite the short-term market dip, Ganda remains confident in ZEDA's solid business fundamentals and is committed to resolving the liquidity issues affecting the stock price. Ganda emphasized that the company's performance is strong, with robust sales growth and a healthy balance sheet. When asked about the challenges in the used car market, Ganda acknowledged that the industry is facing headwinds as it transitions from a period of super profits to a more normalized state. While margins are expected to be lower than the previous year, Ganda remains positive about the market outlook and believes that the industry will continue to perform well. Regarding the potential opening of the market to secondhand car imports from regions like the Middle East or Japan, Ganda highlighted the importance of safety and total cost of ownership, cautioning against the risks associated with gray imports. Ganda also discussed ZEDA's growth strategy in sub-Saharan Africa, noting that the company sees significant opportunities for expansion in markets like Zambia, Mozambique, and Botswana. With plans to corporatize its operations in various countries and diversify its revenue streams, ZEDA aims to increase its revenue contribution from the region to between 25% and 30% in the next three to four years. In conclusion, Ganda remains optimistic about ZEDA's future growth prospects, citing the company's strong performance, resilient business model, and strategic expansion plans in African markets. Despite the short-term market fluctuations, ZEDA is well-positioned to capitalize on emerging opportunities and drive sustainable growth in the automotive sector.