WeBuyCars FY HEPS slump 62.6%

WeBuyCars, a company listed on the JSC in April after being unbundled from transaction capital, has reported a 16.5% increase in revenue and a 23.4% increase in core headline earnings for its 2024 financial year. However, basic and headline earnings were impacted by once-off listing costs and core option accounting adjustments. Despite this, the share price has doubled since the IPO, currently sitting at around R40. The CEO, Faan van der Walt, expressed satisfaction with the company's performance, emphasizing their commitment to delivering sustainable growth for shareholders. During an interview with CNBC Africa, van der Walt highlighted the company's growth trajectory since its inception in 2001, stating that their ambition is to sell more than 23,000 vehicles a month by 2028, up from the current 15,000 cars a month. He attributed their success to the value they provide in a market with around 11 million cars in South Africa, where selling a vehicle is not a common occurrence. Van der Walt also discussed their focus on consolidating their market share and expanding within South Africa, mentioning possible international expansion in the future. The CEO addressed concerns about the impact of listing costs on earnings, stating that those were one-time expenses that would not recur. He emphasized the benefits of being a listed company, such as the ability to raise capital and provide shareholders with more options. Van der Walt also discussed the performance of Chinese vehicles in the second-hand market, noting that they are gaining a foothold and increasing their market share in South Africa. In conclusion, WeBuyCars' strong financial results, ambitious growth targets, and strategic focus on market share expansion indicate a positive outlook for the company's future.