Another huge loss for Takealot

The Takealot Group has posted yet another loss, but says it is expected to reach profitability in the current financial year.

Its parent organisation, Naspers, said that the Takealot Group achieved significant growth in 2H25, driven by enhanced customer offerings and the TakealotMore subscription service.

According to Nasper’s results for the 2025 financial year, the Takealot Group’s revenue grew by 20% in US dollar terms to reach $823 million (R14 billion at the current exchange rate). 

Gross Merchandise Value (GMW) increased by 13% year-on-year despite a slow start. Gross profit margin improved by 1%, supported by the strong performance of high-growth segments like Mr D Grocery.

Despite the growth in revenue, the group recorded an adjusted loss before interest and taxes (aEBIT) of $12 million (R217.12 million) due to increased marketing and infrastructure investments.

AEBIT is a non-IFRS measure that refers to EBITDA adjusted for depreciation, amortisation of software and interest on capitalised lease liabilities.

It was previously referred to as a trading profit or loss, by the group.

Although not a standard measure of profit or loss, Naspers said it is useful to analyse operational profitability within the group’s chief operating decision-maker (CODM). 

Notably, while still recording a loss, Takealot has improved on the $14 million loss recorded in 2024.

The group’s aforementioned marketing investments were aimed at preparing for competitive pressures from new international entrants, such as the Amazon marketplace which launched in South Africa last year.

Naspers believes that the Takealot group remains on track to achieve profitability in the 2026 financial year.

The e-commerce group’s strategic initiatives included the sale of Superbalist.com and the acquisition of M24 Logistics, which boosted its operational capabilities.

Customer loyalty through TakealotMore also continues to grow, which is driving increased shopping frequency and order growth.

Takealot.com posted 19% (17%) revenue growth to $706 million (R12.7 billion), with GMW rising 13% and orders increasing by 15%, underpinned in emerging product categories.

Mr D achieved an 11% (8%) revenue increase to $117 million (R2.1 billion), with a significant 81% GMW growth in groceries and improved aEBIT of $4 million (R72 million).

“Both the Takealot.com and Mr D platforms continue to excel, cementing their leadership in South Africa’s ecommerce market through innovation and customer focus,” said Naspers.

“Takealot grew investments in its staff and infrastructure to expand its fleet of electric trucks, now operating one of the largest fleets of electric trucks in South Africa.”

Broader group

Takealot may be the most recognised brand for South Africans regarding Naspers, but the broader group is far larger and makes most of its wealth from its international businesses.

Having started in publishing, which it retains through its ownership in Media24, Naspers has grown into an international tech giant, much of this is due to its large shareholding in Chinese company Tencent.

Naspers has a cross-ownership structure with the Dutch-listed Prosus, with the two companies having a combined market cap of roughly R3 billion.

In the past year, the group exceeded its profitability targets with increased pace and focus. For the year ending 31 March 2025, Prosus Ecommerce operations delivered US$443m (R8 billion) aEBIT.

The group’s consolidated aEBIT grew by $284 million (R5 billion) to $130 million (R2.3 billion). The strong performance in e-commerce and Tencent boosted core headline earnings by 46% to $3.1 billion (R56 billion). 

“Naspers is rapidly transforming into an operating technology company, focused on lifestyle ecommerce, and powered by innovation and collaboration,” said CEO Fabricio Bloisi.

“We completed the acquisition of Despegar in May 2025 and are already integrating its products into iFood’s Clube membership. We are making good progress with the purchase of Just Eat Takeaway.com, which will create a new AI-powered tech champion in Europe.”

The group’s earnings for ordinary shares increased nearly double to 3,099 US cents (R55) while headline earnings per share saw a similar increase to 1,529 US cents (R27). 

The Prosus board recommended a 100% dividend increase per share from 10 euro cents (R2.08) to 20 euro cents (R4.16).