WeBuyCars Holdings reports significant growth in sales and expansion plans

WeBuyCars Holdings management said they had made significant increases and enhancements to their buying and selling capacity during the six months to March 31.

The motor industry sales uptick in the first few months of 2025 signals an improvement in consumer confidence and a resilient appetite for mobility, despite broader economic pressures, management said at the release of the interim results on Monday.

The group, which listed on the JSE on April 11, 2024, said it would pay a 30 cents a share interim dividend. Core headline earnings increased by 26.4% to R508.2 million after the number of used units sold increased 12.9% to 92 339, while the number of units bought increased 13.5% to 91 392.

Management said they expect that enhancements to their internal finance application system and the lower interest rate environment in South Africa should positively impact sales volumes – particularly in the finance sales channel.

In the six months under review, 10 new buying pods were added, bringing the group's national footprint to 93, thereby enhancing customer convenience across the country.

The Pietermaritzburg supermarket was relocated to a larger site with 300 parking bays. Capacity was also expanded at the George, Polokwane, the Dome, Johannesburg South, Riverhorse Valley, and Gqeberha facilities.

The Rustenburg supermarket was opened on October 1, 2024, as planned – with capacity for 300 vehicles, expanding the group's reach to the North West Province.

The Vereeniging supermarket will accommodate 550 vehicles for sale - the group anticipates trading from this facility from August 1.

The development of the 30 400 square metre Lansdowne supermarket in Cape Town was progressing well, and trading was expected to start there in December 2025. This supermarket will have the capacity for 1 300 vehicles for sale.

Construction of the 17 450 square metre Montana supermarket in Pretoria North was progressing to plan. Trading was expected from this new facility in December 2025. This supermarket will hold 1 300 vehicles for sale.

These developments were being funded through existing cash reserves and available debt facilities.

“Against this backdrop, WeBuyCars will continue to focus on what it does best: simplifying the vehicle buying and selling processes, enhancing its digital platforms, refining its lead management systems, and leveraging its growing data insights to drive smarter, faster pricing decisions,” the group’s management said.

They said the key drivers of growth in core headline earnings in the past six months were higher volumes, higher average unit selling prices, improved margins, and cost efficiencies driven by economies of scale.

They said ongoing investment and enhancements to the technology platform, particularly in the prioritisation/qualification of buy leads, had resulted in operational efficiencies and margin improvements during the interim period.

“The number of vehicles bought and sold continued to grow, with sales volumes surpassing 15 000 units in four of the last six months and reaching an all-time monthly record for WeBuyCars of 16 294 units in November 2024.”

WeBuyCars' balance sheet was conservatively geared, with R284.1m in net cash at the end of the period. The group said it was making meaningful progress toward its goal of buying and selling 23 000 vehicles per month by the 2028 financial year.

The share price inched up 0.1% to R46.45 on Monday afternoon, a price that is about double the R23.25 that it traded at a year ago.

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