WeBuyCars announces 20% dividend increase amid growth in SA’s used car market

WeBuyCars Holdings lifted its final dividend 20% to 30 cents a share following another year of growth and market share gains in South Africa’s tempestuous car market.

The company that listed on the JSE in April last year said revenue was up 13% to R26.4 billion and core headline earnings increased 15% to R937.6 million for the year to September 30. The company bought 180 576 vehicles and sold 179 006 in the year, representing increases of 7.7% and 8.4% respectively.

“Despite a tough economic environment, we delivered robust results by focusing on what matters most – our customers, our people, and our technology. We have significantly expanded our capacity and invested ahead of the curve in people and technology. These steps position us well to reach our goal of 23 000 vehicles per month by 2028,” said CEO Faan van der Walt.

Monthly sales volumes exceeded 15 000 units in six of the last 12 months, which the group said underscored WeBuyCars’ growing market share. A monthly sales volume record for WeBuyCars of 16 294 units was reached in November 2024.

During the year, new supermarkets were opened in Rustenburg and Vereeniging, and capacity was expanded at George, Polokwane, the Dome, Johannesburg South, and Mbombela locations, increasing national capacity to 12 911 parking bays. Twenty-three new buying pods brought the total to 106 nationwide.

“The used-car market in South Africa is large and growing, and at this point, we only have a small share of the second-hand car park,” said Van der Walt.

There were planned openings in Montana (Pretoria North) and Lansdowne (Cape Town) before year-end, which would further boost capacity by more than 20%.

Land was secured in Richards Bay and eMalahleni, which would anchor further expansion in 2026. Continuing investment in technology and infrastructure included the launch of Inspectify, WeBuyCars’ in-house vehicle condition reporting platform.

The company’s WeFin finance system was now also fully operational, speeding up credit approvals and improving outcomes for both customers and staff.

As part of its succession planning, Dr Wynand Beukers was appointed Deputy CEO effective January 1, 2026. Currently serving as Chief Digital Officer, Beukers had been a driving force behind WeBuyCars’ digital transformation and would continue in that role while working closely with the CEO to ensure leadership continuity for years to come, the group said.

“His appointment as Deputy CEO is a natural next step and will strengthen our leadership team as we continue to grow and innovate,” said Van der Walt.

He said the results were delivered in a challenging trading environment, particularly in the second half, characterised by low GDP growth, pressure on consumer affordability, lower levels of consumer confidence, and lower bank approval rates. WeBuyCars experienced margin pressure from structural shifts in the South African automotive industry, he said.

“The continued strength of the new vehicle market, together with the rapid rise of competitively priced Chinese brands, including GWM, Chery, Omoda, Jaeco, Jetour, MG, JAC, and BAIC, has significantly influenced consumer behaviour and heightened competition,” said Van der Walt.

To maintain liquidity and ensure healthy inventory levels, WeBuyCars had adjusted selling prices on vehicles competing within these new price brackets, he said.

BUSINESS REPORT