Zeda (ZZD) 1H24 – Results Snapshot

Diluted HEPS 165.5cps (-12.5% y-y).
Turnover increased by 18.4% y-y to R5 270m.
GPM decreased by 550bps to 40.7%.
OPM decreased by 300bps to 15.0%.
Expenses increased by 3.7% y-y while expenses-to-sales decreased from 27.0% to 23.7%.
Dividend of 50.0cps.
Cash generated from operating activities improved from -R913m to -R304m.
The Leasing Greater Africa businesses revenue surged by 29% y-y, contributing 22% to total revenue. The improved performance is due to the results delivered by Zambia, Botswana, Mozambique and Namibia.
The revenue from the car rental business grew 19.6% y-y to R3 930m, due to the recovery of the industry and increased used car sales volumes. OPM fell 530bps due to the normalisation of the used car market reducing margins and excess supply of new vehicles, leading to heavy discounts in the retail market, thus putting pressure on used car sales.