WeBuyCars pays second dividend after strong interim results

The JSE-listed vehicle trading platform WeBuyCars saw double-digit revenue growth in the six months ended 31 March 2024, the group reported on Sens on Monday.

The board declared an interim ordinary dividend of 30 cents per share.

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WeBuyCars, which was listed on the main board of the JSE just over a year ago, also reported a robust core return on equity (ROE) of 47.6% in the period under review. Vehicles bought increased 12.9% to 92 339 and vehicles sold rose 13.5% to 91 392.

Revenue was up 15.2% year on year to R13.1 billion, while core headline earnings per share rose a modest 1.6% to 121.8 cents, tempered by the issuance of new shares ahead of the company’s listing.

Growth and expansion

WeBuyCars is pressing ahead with its growth strategy, aiming to achieve a monthly trading volume of 23 000 vehicles by 2028.

The company is expanding its physical footprint, with additional capacity for 3 000 vehicles expected to come online by late 2025.

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Developments include the upcoming opening of the Vereeniging supermarket in August and two major facilities in Cape Town and Pretoria North, each capable of accommodating 1 300 vehicles, set to commence trading by December.

These expansion projects are being funded through a combination of internal cash reserves and existing debt facilities, underscoring the company’s disciplined approach to capital deployment.

Several milestones marked the company’s operational progress during the review period. WeBuyCars added 10 new buying pods, bringing its total national footprint to 93.

It also opened a new supermarket in Rustenburg, relocated and expanded the Pietermaritzburg site, and upgraded several key locations, including George, Polokwane, The Dome, Johannesburg South, Riverhorse Valley, and Gqeberha.

Technology investments

In the period under review, WeBuyCars made significant improvements to its technology platform, streamlining and simplifying the car buying and selling process. Its website is South Africa’s most visited automotive retail platform, with approximately 8.7 million total visitors and 2.6 million unique users per month.

CEO Faan van der Walt notes the company is on track to meet its ambitions for market share growth.

Read: Nine months, and 46 unhappy WeBuyCars customer complaints heard

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