- Woolworths expects lower earnings for the full year due to challenging trading conditions impacting consumer discretionary spending. Group turnover and concession sales for the 53 weeks to end-June grew by 6.2%, but headline earnings per share (HEPS) are anticipated to decline by 14%-19% for continuing operations and 27%-32% for the total group. A non-cash impairment of goodwill in the Politix business within Country Road Group affected earnings per share (EPS). Despite disruptions, the food business showed strong growth, with turnover and concession sales rising by 11.2%. Woolworths will release its annual financial results on September 4.
- MTN Nigeria reported solid operational performance but faced financial challenges due to the weakening naira. The group posted a loss after tax of 519.1 billion naira for the six months ended June, compared to a restated loss of 85.6 billion naira a year ago. EBITDA declined by 11% to 547.7 billion naira. Despite these setbacks, total subscribers increased by 2.9% to 79.4 million, and active data users rose by 11.1% to 45.6 million. Service revenue grew by 32.6% to 1.5 trillion naira. CEO Karl Toriola cited rising inflation and naira depreciation as significant challenges.
- Italy-based Bending Spoons, owner of apps like Evernote and Meetup, has acquired file transfer service WeTransfer. The terms and valuation of the deal were not disclosed. WeTransfer CEO Alexandar Vassilev highlighted the platform’s growth to 600,000 subscribers and 80 million monthly active users over the past decade. Bending Spoons CEO Luca Ferrari expressed enthusiasm for the acquisition, emphasising its commitment to nurturing creativity. The company plans to maintain 30% of WeTransfer’s advertising space for charitable and editorial content. While changes to WeTransfer’s pricing and potential layoffs are not yet announced, Bending Spoons has a history of transforming and restructuring acquired businesses.
- eMedia is considering legal options to overturn DStv’s removal of four of its channels. DStv dominates around 9 million out of 12 million satellite homes in South Africa. For the year, eMedia’s earnings before interest, tax, depreciation, and amortisation reached R628.3m, with advertising revenue at R2.3bn. eMedia held a 33.5% prime-time audience market share, with http://e.tv leading at 34%. Openview’s revenue rose to over R600m from R500m the previous year. Four of eMedia’s channels ranked among the top 10 satellite channels, despite increased marketing expenses of R20m and legal costs of R8.8m.
- WeBuyCars shares have surged over 30% since its April 11 debut on the JSE, adding R2.67bn to its market value, now at R11bn. This growth highlights WeBuyCars’ strong trajectory, evolving from a start-up to a leader in the second-hand vehicle market, selling over 13,000 vehicles monthly. Previously, WeBuyCars was hindered by Transaction Capital’s poor performance. The unbundling shielded WeBuyCars from Transaction’s debt, distributing 256.3 million shares to investors and raising R1bn. Coronation, an asset manager, supports WeBuyCars, citing its industry leadership and potential for continued market expansion and robust growth.
- The Council for Medical Schemes (CMS) has placed Sizwe Hosmed Medical Scheme under statutory management by joint agreement. Announced in a joint statement by CMS and Sizwe Hosmed’s board of trustees, this intervention aims to stabilise the scheme and protect members’ interests. Sizwe Hosmed, formed from a 2021 merger, saw its solvency level drop despite initially strong reserves. Joe Seoloane, a healthcare business rescue specialist, has been appointed as statutory manager to ensure compliance and investigate the financial issues. CMS urges members to stay with the scheme during this regulatory intervention.
- Temu faces protests from hundreds of Chinese sellers over high penalties for returns, as competition intensifies with Shein. The international site, owned by PDD Holdings, has imposed fines up to five times the sale value, pushing many vendors to the brink of bankruptcy. A garment seller from Guangzhou reported escalating fines and led a protest at Temu’s headquarters. Temu claims most merchants have success under its guidelines and asserts penalties maintain marketplace quality. The company is working with merchants to resolve disputes, but many sellers remain dissatisfied and financially strained.
- Boeing named Kelly Ortberg as its new president and CEO, effective August 8, after a lengthy search. Ortberg, a former Rockwell Collins executive, will address several challenges, including reviving jet production and restoring trust with regulators. Boeing is dealing with a significant reputational and safety crisis, exacerbated by a January 5 incident involving an Alaska Airlines-operated MAX 9 jet, leading to the resignation of CEO Dave Calhoun. The US FAA capped 737 MAX production, impacting deliveries and financial performance. Boeing posted a $1.4bn quarterly loss and continues to face struggles in its defence, space, and security sectors.
- Startups are increasingly securing significant funding to revolutionise non-alcoholic beverages. Liquid Death, a canned water company, recently raised $67 million, boosting its valuation to $1.4 billion. Meanwhile, Athletic Brewing Company, the largest non-alcoholic brewery in the U.S., secured $50 million in funding. These companies are reshaping beverage categories with innovative, alcohol-free options, diverging from traditional cola and craft beer offerings. Newcomer Not Beer joins the trend with sparkling water, while Odyssey introduces mushroom drinks, Olipop offers healthier sodas, and Lemon Perfect provides lemonade alternatives. These ventures highlight a growing market for enjoyable, non-alcoholic drink choices.
- Liberian President George Weah has suspended the country’s Central Bank Governor, J. Aloysius Tarlue, following a recent audit revealing significant financial mismanagement. The audit uncovered discrepancies and irregularities in the bank’s financial operations, prompting the suspension as an initial response. President Weah has directed an investigation into the findings and has appointed an acting governor to ensure continuity in the Central Bank’s operations. The suspension reflects a broader effort to address corruption and improve financial oversight within Liberia’s financial institutions, aiming to restore public confidence and ensure fiscal integrity.
OTHER BUSINESS NEWS TODAY…
Ethiopia has secured a substantial $16.6 billion financial package from the World Bank, following the successful implementation of its International Monetary Fund (IMF) program. This agreement, marking a significant boost to Ethiopia’s economic reform efforts, includes both concessional loans and grants. The World Bank’s support aims to bolster the country’s economic stability, support infrastructure projects, and enhance social services. The funding package underscores the international community’s confidence in Ethiopia’s reform trajectory and its commitment to fiscal responsibility. This landmark deal is expected to accelerate Ethiopia’s development goals and improve its economic outlook.
Kenya’s physical banks are maintaining customer loyalty through enhanced user experiences, despite the rise of digital banking. Financial institutions are focusing on creating welcoming and efficient branch environments, offering personalized services and modern amenities to attract and retain clients. Innovations such as streamlined in-branch processes, dedicated customer service representatives, and improved branch layouts are key strategies. Banks are also integrating digital tools within physical spaces to bridge the gap between in-person and online services. These efforts aim to provide a seamless and engaging banking experience, keeping customers connected to traditional banking channels amid growing digital alternatives.
Volvo has unveiled the XC60 Black Edition in South Africa, a limited-run model featuring a sleek, chrome-free design. Limited to just 23 units, the Black Edition starts at R1,092,500 for the B5 Plus variant. The model also comes in ‘Recharge’ plug-in hybrid versions, priced at R1,364,000 for the Plus and R1,438,000 for the Ultimate. Buyers will pay an additional R61,000 for the B4 version and R50,000 for the PHEV versions. The Black Edition features Onyx Black paint, high-gloss black accents, and 21-inch alloy wheels. The interior offers charcoal upholstery options and standard five-year warranties.
FIAT celebrates its 125th anniversary with positive half-yearly sales results, solidifying its status as Stellantis’ leading brand. With over 660,200 units sold globally, FIAT achieved a 2.2% increase compared to last year. The brand is poised for greater accomplishments with upcoming projects, including the Fiat Grande Panda and Abarth 600e. FIAT has announced its transition to fully electrified vehicles in Europe, with a focus on inclusivity, ingenuity, and Italian style. The brand has seen significant growth in various regions, including North America, Europe, and South America, with notable performances in Italy, Brazil, and Turkey.
Golden Arrow Bus Services (GABS) has secured a major deal to purchase 120 electric buses from Chinese automaker BYD, following four years of rigorous testing. The 65-seater BYD B12 buses, equipped with lithium iron phosphate batteries, are set for delivery starting late this year, with full deployment expected by December 2025. GABS plans to introduce ten buses monthly throughout 2025, with a focus on integrating renewable energy and gaining operational insights for potential full fleet electrification. CEO Francois Meyer highlights the order’s significance in the company’s renewable energy commitment and future fleet strategy, despite the deal’s undisclosed cost.
Meanwhile, Uber Technologies and Chinese automaker BYD have announced a multi-year partnership to introduce 100,000 new electric vehicles to the ride-hailing platform globally. The collaboration, starting in Europe and Latin America, will provide drivers with accessible pricing, financing, and support for BYD’s EVs, and will later expand to the Middle East, Canada, Australia, and New Zealand. The deal includes integrating BYD’s vehicles with self-driving technology into Uber’s platform. Uber aims to boost EV adoption, addressing barriers like high costs and borrowing rates, while enhancing its sustainability goals. The partnership reflects growing global efforts to reduce emissions and support electrification in transportation.
South African mobile mechanics platform Fixxr has been selected for the eighth cohort of the Google for Start-ups Accelerator Africa programme. This 10-week, equity-free accelerator supports Series A start-ups focused on AI-driven, Africa-centric solutions. Participants will receive access to Google’s AI expertise, technical resources, including up to $350,000 in Google Cloud Credits, mentorship from AI professionals, and networking opportunities. The cohort, chosen from nearly 1,000 applications, includes innovative start-ups from Kenya, Nigeria, Rwanda, and South Africa. Since 2018, the programme has helped 106 start-ups across Africa raise over $263 million and create over 2,800 jobs.
Arik Air’s fleet has been grounded following a $2.5 million debt dispute with Atlas Petroleum International Ltd. The Nigerian Airspace Management Agency (NAMA) acted on a court order from the Federal Capital Territory (FCT) High Court, which resulted from an enforcement of a judgment against Arik. Despite the airline’s appeal efforts, including reaching the Supreme Court, the court’s order led to the attachment of Arik’s aircraft. Arik Air CEO Roy Ilegbodu has criticized the aviation minister’s decision as unjust and detrimental, impacting passengers and the Nigerian economy. Ilegbodu urges reconsideration, citing the disruption to services and the legal processes involved.