WeBuyCars Holdings, listed on the JSE in April, reported a 26% rise in core headline earnings for the first half, defying a challenging trading environment marked by high interest rates and fuel costs.
- Core HEPS (headline earnings per share) increased by 26.1% to 119.9c, while core headline earnings reached R402m, up 26.6%. Revenue also saw a significant rise of 15.9% to R11.4bn.
- WeBuyCars uses core headline earnings to measure the underlying performance of the business, adjusting for certain non-recurring or non-cash items that may distort financial results.
- The company attributed its success to factors such as higher volumes, improved margins, higher average selling prices, operational efficiencies, and cost efficiencies driven by economies of scale.
- WeBuyCars demonstrated agility in responding to market changes by realigning inventory profiles to match consumer demand, focusing on lower-priced vehicles.
- While the company reported a headline loss per share of 20.7c from HEPS of 20c a year ago, buying and selling volumes increased by 13.7% and 13.4%, respectively.
- WeBuyCars expects challenging market conditions to persist in South Africa due to lower consumer confidence, higher interest rates, and lower new vehicle sales volumes. However, the company remains confident in its robust business model and plans to continue its growth journey, aiming to increase monthly volumes to 23,000 and double its market share by 2028.