Zeda (ZZD) investor relations material

Executive summary

• Achieved double-digit earnings growth and solid returns despite a challenging macroeconomic and trade environment, supported by a diversified portfolio and robust operating model.

• Maintained resilience and agility through disciplined strategy execution, digital integration, and expansion in leasing, rental, car sales, and subscription services.

• Interim dividend of 55 cents per share declared, up 10% from the prior year, reflecting commitment to shareholder value.

• Initiated a successful R850 million bond issuance, diversifying funding sources and reducing cost of debt.

• Business fundamentals and a robust operating model supported performance amid heightened competition and subdued growth.

Financial highlights

• Revenue was R5.2 billion, down 1.6% year-over-year, mainly due to a 5.8% decline in car sales, offset by a 4.2% increase in leasing and stable rental performance.

• Operating profit reached R832 million, up 5.4% from the prior year; operating margin improved to 16%.

• EBITDA margin maintained at 34%; headline and basic EPS grew by 11–11.8%.

• Net debt to EBITDA: 1.9x; return on equity: 21.8–22%.

• Interim dividend of 55 cents per share declared, with R195 million paid in 2024.

Outlook and guidance

• Focus on digital integration, cost efficiency, and deepening the usership economy to drive growth.

• H2 priorities include technology upgrades, growth, cost efficiencies, Ghana divestment, and optimal fleet management.

• Strategy centers on subscription business, corporate leasing, Greater Africa, and used car business as growth pillars.

• Expect continued challenging trading environment, with pressure on replacement segment and short-term rental market.

• Ongoing transition to a more asset-light, diversified funding structure, targeting 80% unsecured funding by 2026.