WeBuyCars interim core HEPS edge up 1.6%

South Africa's largest second-hand vehicle retailer, WeBuyCars, has reported a 26.4% increase in full-year core headline earnings per share to R508.2 million. The company's interim core HEPS edged up by 1.6%, reflecting a steady growth trajectory. WeBuyCars attributes its accelerated earnings to higher volumes, with 91,392 cars sold in the year to March, as well as increased selling prices and other contributing factors. To delve deeper into the company's performance and future plans, CNBC Africa sat down with Chris Rein, the Chief Financial Officer of WeBuyCars. Rein highlighted the diverse market served by WeBuyCars, noting that the average age of vehicles sold by the company averages around nine or ten years old. This range includes newer one-year-old models as well as older vehicles, catering to a wide spectrum of potential buyers. As discussions turn to broader economic implications, Rein expressed interest in the outcome of the meeting between South African President Ramaphosa and US President. He emphasized the importance of consumer confidence, economic growth, and job creation in supporting the success of their business. While monitoring developments related to US trade tariffs, Rein noted that WeBuyCars is less exposed to tariff changes compared to some competitors due to their position as a retailer rather than a manufacturer. The conversation shifted to the potential impact of a deal favoring Teslas in the South African market in exchange for building electric charging stations. While acknowledging the growing interest in electric vehicles (EVs), Rein highlighted that current sales of EVs on their platform remain relatively small, constituting less than half a percent of total sales. He expressed curiosity about the reception of Teslas in South Africa but refrained from making a specific projection. Looking ahead, Rein outlined WeBuyCars' expansion plans, including the opening of three new large branches to accommodate increased vehicle sales. The company aims to enhance its physical infrastructure with the capacity for more selling bays, positioning themselves to meet their goal of buying and selling 23,000 vehicles by the financial year 2028. In terms of investments, WeBuyCars plans to invest approximately 600 million rand in property, plant, and equipment, aligned with their growth ambitions. Rein emphasized the significance of their IT infrastructure and web platform in supporting record-breaking sales volumes and website traffic, with over 8 million visits per month and more than 2 million unique visitors. When questioned about potential risks to their medium-term outlook, Rein underscored the importance of maintaining a robust IT infrastructure to sustain their growth trajectory. He highlighted the company's focus on enhancing their web platform to support increasing foot traffic and emphasized the critical role of technology in driving future success. As WeBuyCars continues on its growth journey, guided by ambitious expansion plans and a commitment to technological innovation, the company remains poised for further success in the competitive second-hand vehicle market.