Zeda (ZZD) H2 2025 earnings summary

Executive summary

• Revenue increased 1.7% to ZAR 10.6 billion, with headline earnings per share up 15.7% to ZAR 3.61, driven by strong leasing and subscription growth.

• Leasing revenue grew 15.7% to ZAR 3.2 billion, while rental revenue declined 3.4% but operating profit rose 23.3%.

• Robust performance in Greater Africa, especially Zambia, Lesotho, Ghana, and Namibia, contributed to growth.

• Disciplined capital allocation, diversified funding, and ESG integration supported sustainable growth.

• Operating profit surged to ZAR 1.6 billion, up 10.8% year-over-year.

Financial highlights

• Leasing revenue reached ZAR 3.2 billion, up 15.7% year-over-year, with EBITDA margin at 53.1%.

• Rental business revenue declined 3.4% to ZAR 7.4 billion, but operating margin improved to 12%.

• Net debt to EBITDA improved to 1.5x, with net debt of ZAR 5.2 billion.

• Return on invested capital at 14.7%, well above WACC of 10.8%.

• Final dividend of ZAR 1.26 per share, total dividend ZAR 1.81, up 81% over prior years.

Outlook and guidance

• Focus on expanding in Africa, leveraging new country allocations and geographic expansion.

• Continued investment in technology, data, and digitalization to enhance customer experience.

• Growth expected in leasing, heavy commercial, and subscription offerings.

• Plans to maintain optimal capital structure, lengthen debt maturity, and rebalance toward unsecured funding.

• Commitment to responsible, sustainable business practices and ethical leadership.