We Buy Cars (WBC) H1 2026 earnings summary

Executive summary

• Revenue grew 7.8% year-over-year to ZAR 14.2 billion, driven by higher volumes and average selling prices in a deflationary environment.

• Units bought increased 3.2% to 95,328 and units sold rose 2.3% to 93,519, with record sales in March 2026.

• Headline earnings declined 1.6% to ZAR 500.1 million, with headline EPS at 119.7 cents, reflecting margin pressure from deflationary used vehicle prices and expansion investments.

• Three to four new supermarkets opened, expanding parking capacity by 23.6% and supporting long-term growth targets.

• Market share increased to 10.55% in H1 2026, reaching 11% in Q2, despite a flat used vehicle market.

Financial highlights

• Headline earnings per share was 119.7 cents, down 1.7% year-over-year.

• EBITDA declined 1.3% to ZAR 789.5 million and operating profit fell 4% to ZAR 701.1 million.

• Interim cash dividend of ZAR 0.33 per share declared, up 10% from the prior period, representing a 27.5% payout ratio.

• Finance and insurance income rose 13% to ZAR 284.2 million; insurance cell captive profit increased 30.4%.

• Net cash generated from operating activities dropped 77% to ZAR 65.4 million due to higher working capital investment.

Outlook and guidance

• On track to achieve the goal of buying and selling 23,000 vehicles per month by 2028.

• Expansion strategy includes capital-light models for new sites, with future growth modeled as leases rather than owned properties.

• Management remains confident in medium- to long-term growth, leveraging increased vehicle park and operational enhancements.

• New supermarkets in Bloemfontein and Centurion are planned to support further growth.

• Market share gains expected as new Asian vehicles enter the used market, expanding acquisition opportunities.