iOCO (IOC) H2 2025 earnings summary

Executive summary

• Achieved profitability for the first time in three years, driven by cost rationalization, decentralization, disciplined capital allocation, and a stable leadership team.

• All continuing business units are now profitable, with strong operating cash flows and significant debt reduction.

• Recurring revenue base increased to 48% from 37% year-over-year, with a focus on sustainable returns and customer-centric incentives.

• Strategic focus on organic growth, market expansion, and targeted acquisitions, with leadership incentives aligned to drive sustainable returns.

• International operations, especially in Egypt and Saudi Arabia, contributed to growth and diversification.

Financial highlights

• Gross profit rose 2.4% to R1.6 billion year-over-year, with gross margin improving to 29% from 28%.

• EBITDA increased by 50% to R516 million; operating profit surged 403% to R421 million compared to the prior year.

• Cash generated from operations reached R567 million, with nearly 100% cash conversion.

• Net debt reduced by 59% to R247 million; net asset value up 51%.

• Headline EPS improved to 40 cents from a loss of 0.21 cents.

Outlook and guidance

• FY26 guidance targets recurring revenue growth of 60%, EBITDA between R580 million and R600 million, and free cash flow per share above 60 cents.

• Long-term goal of double-digit free cash flow per share growth.

• Continued focus on acquisitions, share buybacks, and balance sheet optimization.

• Continued investment in talent, wellness, and technology training to support growth.