Takealot still not profitable, reports R224 million loss

[Jan]

Takealot makes R224 million loss

Naspers has published interim results for the first half of its 2023 financial year (H1 FY2023), revealing a significant loss for its Takealot group of ecommerce businesses.

The group consists of general online store Takealot.com, delivery service Mr D, and online clothing store Superbalist.

 

[supersunbird]

But why?

 

[My_King]

Those damn TVs for black friday

 

[rvZA]

They will likely never become a profitable business in SA. Way too much political and economical challenges in a collapsing environment. They need to look offshore if they want to become profitable.

 

[PaulMurkin]

But why?

Naspers, that's why... even DSTV has to carry the can for this.

 

[Pegasus]

But why?

Because it's a growth company and you pay taxes on income.

 

[AstroTurf]

But why?

ZAR/USD apparently

 

[borro]

Takeless

 

[SHL]

Takeless

Takealotless

 

[PaulMurkin]

ZAR/USD apparently

Yoh, I would have thought that excuse would be worn very thin by now.

 

[konfab]

Naspers, that's why... even DSTV has to carry the can for this.

Just think about it like this. Every item you buy on Takealot is less money for News24 and DSTV

 

[konfab]

The only way I think they can get a loss like this is because they are getting hammered on the margins with delivery costs, specifically because of last mile deliveries.

If I were in their shoes, I would start consolidating the main business around the pickup points and start increasing the threshold for free delivery. (Like R2k for example).

 

[Johnatan56]

But why?

Economy contracted, people bought less.

 

[quovadis]

Economy contracted, people bought less.

Huh? People bought more according to the article.

 

[BuckRogers]

Staff will strike for their cut of the loss

 

[RaptorSA]

"During the period, Mr D saw orders and GMV increase by 9% and 13%, respectively."

They can probably thank me for that.
Might as well install an underground rail system to my place at this point.

 

[rvZA]

"During the period, Mr D saw orders and GMV increase by 9% and 13%, respectively."

They can probably thank me for that.
Might as well install an underground rail system to my place at this point.

We dropped our Mr D orders since they started adding crazy fees to each product you order from any menu. Just cheaper to get in your car and drive to any takeaway and buy directly from them. Difficult times. Tough choices. Ease now taking the backseat.

 

[ToxicBunny]

I can only assume Takealot are still on a massive expansion drive given the large damn warehouse they have just moved into in Durban.

Its the only way you can really justify the contuining losses in the business.

 

[Jet-Fighter7700]

wait till Amazon shows up.

 

[LazyLion]

The only way I think they can get a loss like this is because they are getting hammered on the margins with delivery costs, specifically because of last mile deliveries.

If I were in their shoes, I would start consolidating the main business around the pickup points and start increasing the threshold for free delivery. (Like R2k for example).

I agree with you, their free delivery threshhold is way too low.