WeBuyCars’ big plans in Cape Town and Pretoria

WeBuyCars is set to open new facilities in Cape Town and Pretoria shortly as it sets ambitious sales targets for the coming years.

In its financial results for the year ended 30 September 2024, WeBuyCars said that its strong performance was driven by higher sales volumes, improved operational efficiencies and cost-saving measures.

The latest results follow the unbundling from Transaction Capital and the separate listing of WeBuyCars on the JSE on 11 April 2024. 

“Despite economic headwinds, including low GDP growth, high interest rates and constrained consumer confidence, WeBuyCars has delivered exceptional results,” said CEO Faan van der Walt.

“These achievements underscore the strength of our business model and our commitment to creating value for stakeholders.”

Group revenue also increased by 16.5% to R23.3 billion when compared to the prior year, while buying and selling volumes at 167 741 and 165 185 units were up 17.8% and 16.4%, respectively.

Sold volumes reached an all-time monthly record of 14,594 units in July 2024.

Core headline earnings grew by 23.4% to R815.4 million, while core headline earnings per share increased by 9.9% year-on-year.

The group said that the key drivers of this growth in core headline earnings were higher volumes and operational efficiencies, improved inventory turns and cost efficiencies driven by economies of scale.

Core headline earnings per share were unfavourably impacted by the February and March 2024 new share issues (83,185,241 ordinary shares, which were implemented as part of the pre-unbundling steps and the pre-listing capital raising initiatives.

The group also declared a final cash ordinary dividend of 25 cents per ordinary share (FY23: 8,205 cents per ordinary share)

The dividend was calculated at 25% of the core headline earnings of WeBuyCars for the second half of the financial year to 30 September 2024.

The company has opted for a more conservative dividend declaration for the purpose of enabling the continued growth of its trading footprint.

Looking ahead

The group previously announced its ambition to achieve monthly volumes around the 23,000 level and to double its market share by 2028.

As per this objective, WeBuyCars during the year under review expanded its national footprint via the opening of a new vehicle supermarket in East London (Eastern Cape) in June 2024, with a capacity for 300 vehicles.

Since the year-end, the company also opened Rustenburg in October 2024, with a capacity for 300 vehicles.

The group also signed a lease agreement to secure a bigger trading location in Pietermaritzburg.

The group is also making headway on its new supermarket in Lansdowne, Cape Town, which is set to open in late 2025.

The group has also signed key property deals to develop new facilities in Pretoria.

For the purpose of enabling the continued growth of its trading footprint, the company has opted for a more conservative dividend declaration.

WeBuyCars maintained a robust financial position, with net interest-bearing liabilities down 8.5% year-on-year.

Operating cash flow increased by 1.6%, supported by strong inventory management and cost efficiencies. Recent refinancing efforts have also reduced borrowing costs, enhancing financial flexibility.

The Board declared a final cash dividend of 25 cents per share, equating to 25% of core headline earnings for the second half of the financial year.

“As we look ahead, WeBuyCars remains focused on delivering sustainable growth through operational excellence, footprint expansion and technological innovation in our digital vehicle trading platforms,” said Van der Walt.

Read: This is why you always have to renew your driving and car licence in South Africa