WeBuyCars had a challenging year, with a 14% decline in earnings to R658 million. However, the company recovered in the year’s second half with increased volumes.
These numbers were revealed in Transaction Capital’s audited financial results for the year ended 30 September 2023.
WeBuyCars is the feather in Transaction Capital’s cap and the main profit driver along with Nutun, whose earnings grew to R479 million.
Transaction Capital revealed that WeBuyCars added 1,759 bays to its national footprint in the first half of the year. This brought the national capacity to 10,339 parking bays.
“Given the focus on leveraging existing strategic infrastructure investments, no further branch expansion has occurred in H2 2023,” it said.
The number of vehicles bought and sold continued to increase, with an average number of vehicles sold monthly of approximately 12,000 in the second half of the year.
Overall, the number of vehicles sold by WeBuyCars increased by 13% to 141,851 units in the 2023 financial year.
The increase in sales volumes over the past year has primarily been driven by sales to private individuals, facilitating an increase in finance and insurance income.
“Finance and insurance income will continue increasing as WeBuyCars evolves its offering through Gomo and other third-party providers,” it said.
Business-to-business sales via WeBuyCars’ e-commerce platform fell from 21.1% of total sales in 2022 to 15.4% of total sales in FY2023.
The decline, Transaction Capital explained, was due to the impact of the challenging economic environment on smaller dealerships.
In contrast, business-to-consumer online sales continue to grow and now account for 7% of total sales, up from 6.1% last year.
The charts below provide an overview of WeBuyCars’ performance in the 2023 financial year.
Revenue increased from R17.9 billion to R20.0 billion, earnings declined from R762 million to R658 million
Vehicles sold increased from 125,812 to 141,851
This article was first published by Daily Investor and is reproduced with permission.