Takealot sales hit R6.26 billion during COVID-19

Takealot has seen major growth in the six month period ended 30 September 2020, according to Naspers’ consolidated interim financial statements.

Takealot Group generated R6.26 billion in Gross Merchandise Value (GMV), which signaled 85% growth year-on-year. The Takealot ecommerce platform grew its GMV by 88%, while first-party and third-party businesses grew by 69% and 119% respectively.

The Group also reported a 41% increase in revenue to R3.66 billion for the same period, and these good results culminated in a trading loss improvement of 36%.

Naspers noted that these results were despite the retailer having to make a number of one-time investments based on the COVID-19 pandemic.

“In the first quarter of FY21, South Africa operated under strict government lockdown regulations,” noted Naspers.

“Takealot.com was permitted to sell only essential goods, while Superbalist and Mr D Food could not operate at all.”

“The business rebounded in late May when trading restrictions were lifted and all three businesses exceeded their pre-COVID-19 growth rates in the second quarter.”

The Takealot Group also noted GMV growth for Superbalist of 37%, while Mr D Food grew its GMV by 101%.

Naspers results

Takealot’s holding company, Naspers, delivered positive results over the same period, with group revenue growing by 27% to R199.92 billion ($13 billion).

Ecommerce revenue across the group grew by 37%, while group trading profit grew by 38% to R39.98 billion.

However, the group experienced a 6% decrease in core headline earnings, which it said was largely down to reduced earnings contributions from the Prosus group.

Naspers said that while the current operating environment remains uncertain due to the COVID-19 pandemic, the company remains “cautiously optimistic.”

“The fundamentals of all our businesses are strong and each is well-positioned to benefit from accelerating secular growth trends in the consumer internet market,” said Naspers.

“Our businesses – particularly Food Delivery, Payments and Fintech, Etail, and Edtech – are benefiting from these structural shifts which we believe will have a lasting impact.”

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Takealot sales hit R6.26 billion during COVID-19