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Annual Results for the year ended 30 September 2025 and Cash Dividend Declaration
Zeda Limited
Incorporated in the Republic of South Africa
Registration number: 2022/493042/06
JSE share code: ZZD
Bond code: ZFLI
ISIN: ZAE000315768
("Zeda" or the "Company" or the "Group")
ANNUAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 AND CASH DIVIDEND DECLARATION
Zeda has achieved a strong set of results, underscoring our solid return on invested
capital, profit margins, and remarkable double-digit growth in both earnings and
operating profit. These accomplishments are especially significant given the
challenging trading environment we navigated. Our results are a testament to the
strength and robustness of our diversified business model, which has effectively
countered the pressures facing traditional car rental services and vehicle sales.
Amid these challenges, our strategic focus on Leasing, Subscription, and the
expansion of the Greater Africa business has proven invaluable, enabling us to
offset the impact of declining used-car sales volumes. By rigorously adhering to
our operating model - focusing on prudent financing, strategic purchasing, efficient
utilisation, and judicious disposal - we have not only optimised our fleet composition
but also achieved higher utilisation rates and an advantageous sales mix. Furthermore,
our proactive approach has enabled us to contain our operating expenses below inflation,
thereby enhancing our overall performance.
GROUP HIGHLIGHTS
- Revenue increased by 1.7% to R10 649 million
- Gross profit increased by 3.9% to R 4 353 million and a margin of 40.9%
- EBITDA sustained at R3 359 million, and the margin maintained at 32%
- Operating profit increased by 10.8%, and the margin expanded by
100 basis points to 15%
- Earnings increased: BEPS increased by 12.5% to 360 cents,
HEPS increased by 15.7% to 361 cents
- Net debt of R5 176 million with net debt to EBITDA of 1.5x (FY2024: 1.4x)
- ROE of 21.9% (FY2024: 23.1%)
- ROIC of 14.7% exceeds WACC of 10.8%
- Final dividend declaration of 126 cents per share.
Total dividend for the year of 181 cents, representing a 50% annual dividend
payout ratio
The automotive sector is facing structural changes, including the influx of vehicles from
Asian vehicle manufacturers, and US tariffs that have negatively impacted the value chain.
In South Africa, the economy is showing modest growth, whereas Zambia, Namibia, and Ghana
are witnessing stronger economic performance. However, political instability in Mozambique
has constrained progress observed over the past three years. Despite this, we remain
optimistic as we have started to see positive developments toward the end of the financial year.
The shift in the new-car market has exerted downward pressure on the prices of used vehicles,
particularly one-year-old models. To mitigate margin dilution, we extended the lives of rental
vehicles and sold them at an optimal age. Although this tactical response has led to a 14.6%
decrease in used car sales volume and a 4.1% decline in revenue, it has also boosted profit
margins. The Car Rental Business achieved a 2.1% increase in rental days, because of strategic
commercial partners, local leisure, and the subscription business, in line with our strategy
of driving the usership economy. On the other hand, the replacement business has been adversely
affected by lower insurance claims, aggressive pricing in the inbound business, and customers
buying down, resulting in overall short-term revenue declining by 2.6% for purely rental business,
excluding the sales business.
Operational discipline in the management of car rental vehicles, out-of-service vehicles, and
reduced damage incidents has significantly improved utilisation from 71% to 73% year on year.
The Leasing Business continued its growth, rising by 15.7% across our Sub-Saharan operations.
The growth trajectory is in line with our strategic focus on corporate leasing, heavy commercial,
and the Greater Africa region.
During the year, we focused on cost efficiencies, and contained operating expenses below the
inflation rate for the year. This saw gross profit increasing by 3.9% to R4 353 million, with a
gross profit margin of 40.9%. Both EBITDA and the EBITDA margin were maintained at R3 359 million
and 32%, respectively. We grew operating profit by 10.8% and expanded the operating margin by
100 basis points to 15% compared to the prior year.
Our funding diversification strategy proved successful, reducing the risk of refinancing
highlighted by the rating agency in the prior year. We entered the debt capital markets and signed
a Common Terms Agreement ("CTA") to bolster our long-term funding sources. By year end, 60% of our
debt was long term and 77% was unsecured. Net debt rose to R5 176 million to support fleet leasing
growth, ending the year with a net debt-to-EBITDA ratio of 1.5x. The return on equity ("ROE")
reached 21.9%, with a capital structure of 65:35. Our annual review and credit opinion maintains
our investment-grade rating and stable outlook.
We delivered an impressive return to shareholders, with headline earnings per share ("HEPS") and
basic earnings per share ("BEPS") increasing by 15.7% and 12.5% to 361 and 360 cents per share,
respectively. We also achieved a return on invested capital ("ROIC") of 14.7%, which exceeded the
weighted average cost of capital ("WACC") of 10.8%.
In addition, the Board returned cash to shareholders by declaring a final dividend of
126 cents per share. For the full financial year 2025, the Board has declared an annual dividend
of 181 cents, representing a 50% annual dividend payout ratio in line with our dividend policy of
30% to 50% of net profit after tax.
GROUP PERFORMANCE
R'million FY2025 FY2024 %
Revenue 10 649 10 468 1.7
EBITDA 3 359 3 347 0.4
EBITDA margin (%) 32 32 -
Operating profit before capital items 1 624 1 449 12.1
Operating profit 1 623 1 465 10.8
Operating margin (%) 15 14 7.1
Basic earnings per share (cents) 360 320 12.5
Headline earnings per share (cents) 361 312 15.7
Net debt to EBITDA (x) 1.5 1.4 (7.1)
Return on equity (%) 21.9 23.1 (5.2)
Net asset value per share 1 777.4 1 525.4 16.5
OUTLOOK STATEMENT
Zeda has been listed for three years. Our journey began with a deliberate strategic pillar to
establish a strong foundation for environmental, social and governance ("ESG") principles -
because we believe that sustainable growth and responsible leadership are inextricably linked.
Funding was also a focus point for diversifying and optimising our balance sheet to drive growth
and secure strong returns on investment. This disciplined approach has not only facilitated growth
but has also enhanced our financial capability, positioning us to capitalise on transformative
opportunities.
Our business operates in the automotive industry, enabling customers from the corporate, retail,
and public sectors to access vehicles for use in various sectors of the economy across Sub-Saharan
countries. We complete the cycle by selling those vehicles at the end of their useful lives or at
the end of a contract.
The automotive industry continues to grow and undergo a fundamental shift, driven by strong sales
from the Asian automakers, particularly Japan and China. Additionally, the use of vehicles rather
than traditional vehicle ownership is still in its early stages.
With this in mind, our strategy of deepening the usership economy remains our true north. Traction
is evident in the growth of the leasing portfolio across South Africa and Greater Africa, along
with subscription and car sales businesses. These growth pillars provide us with access to vehicles,
markets, and disposal channels, which are essential to the business fundamentals and have enabled
us to achieve a revenue of R10.6 billion.
The Board has approved an inorganic growth strategy that includes expanding into mobility-related
adjacencies, asset-light businesses, and extending our geographical footprint. Furthermore, the
Board has also approved an Africa strategy as we execute our plan to grow the contribution of
Greater Africa to the Group's revenue. Avis Budget Group ("ABG") has extended Zeda's operating
licences on the continent to include East, Central, and West Africa. Zeda has adequate balance
sheet capacity and access to funding to support inorganic growth.
Due to the extended ABG licence coverage beyond Southern Africa to include countries in East,
West and Central Africa, the Group now has access to the available markets within these regions.
This expanded footprint positions the Group to pursue a more cohesive strategy for Africa.
In addition, the performance of the Ghana business has improved as a result of strengthened
contracting discipline and operational enhancements. Consequently, the Board resolved to retain
the operation in Ghana. It is no longer regarded as an isolated asset, but as a strategic anchor
from which the Group can serve the West African region under ABG's broadened licence framework.
Targeted capital allocation to this market is therefore strategically justified.
Furthermore the Board approved the IT and the Data strategies, which will be deployed over the
medium term. The strategies aim to propel Zeda into a mobility integrated business underpinned
by technology and data analytics. Successful implementation of the IT and Data initiatives will
support the customer-centricity model, strengthen our competitive advantage, enhance customer
experience, support business growth and solidify Zeda as a leader in the mobility sector.
As we embark on the execution of the digital journey, pursue new avenues for innovation and drive
growth, the Board has elevated strategy execution to a strategic risk. This decision ensures that
we monitor strategy deployment and consequently generate an appropriate return on investment.
Strategic execution partnerships will also be key to delivering on this strategic goal.
DIVIDEND DECLARATION
The Board has declared an annual dividend (dividend number 4) of 126 cents per share in respect
of the annual dividend for the year ended 30 September 2025, on 22 November 2025, subject to the
applicable dividend withholding tax rate of 20% levied in terms of the Income Tax Act, 58 of 1962
(as amended). Accordingly, for those shareholders that are not exempt from paying dividend
withholding tax, the net ordinary dividend will be 100.8 cents per share. The dividend has been
declared out of income reserves, and the number of ordinary shares in issue at the date of this
declaration is 189 641 787. The Company tax number is 9042025305.
The following dates apply to the dividend:
Last date to trade cum dividend Tuesday, 3 February 2026
Ordinary shares trade ex-dividend Wednesday, 4 February 2026
Record date Friday, 6 February 2026
Payment date Monday, 9 February 2026
Share certificates may not be dematerialised or rematerialised between
Wednesday, 4 February 2026 and Friday, 6 February 2026, both days inclusive.
25 November 2025
JSE Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
FORWARD-LOOKING STATEMENT
This statement contains forward-looking statements. All statements, other than statements of
historical facts, including, among others, statements regarding our strategy, future financial
position and plans, objectives, projected costs, anticipated cost savings, financing plans and
projected levels of growth in the communications markets, are forward-looking statements.
Forward-looking statements can be identified by terminology such as "may", "might", "should",
"expect", "envisage", "intend", "plan", "project", "estimate", "anticipate", "believe", "hope",
"can", "is designed to", or similar phrases. However, the absence of such words does not
necessarily mean a statement is not forward-looking. Forward-looking statements involve several
known and unknown risks, uncertainties and other factors that could cause our actual results and
outcomes to be materially different from historical results or any future results expressed or
implied by such forward-looking statements. Factors that could cause our actual results or
outcomes to differ materially from our expectations include, but are not limited to, those risks
identified in the Zeda financial reports available at http://www.zeda.co.za.
Zeda cautions readers not to place undue reliance on these forward-looking statements. All written
and verbal forward-looking statements attributable to Zeda, or persons acting on behalf of Zeda,
are qualified in their entirety by these cautionary statements. Unless we are required by law to
update these statements, we will not necessarily update any of these statements after the date of
publication of this document so that they conform either to the actual results or to changes in
our expectations.
Any forward-looking information disclosed in these annual results for the year ended 30 September 2025
("results announcement") has not been reviewed, audited, or otherwise reported on by our independent
external auditors.
FURTHER INFORMATION
The short-form annual financial results announcement is the responsibility of the Board of Directors
of Zeda ("the Board"). It is only a summary of the information contained in the annual financial
statements for the year ended 30 September 2025 ("annual financial statements") and does not contain
full or complete details.
Any investment decisions should be based on the annual financial
statements published on the JSE's cloudlink on Tuesday, 25 November 2025. The annual financial
statements have been audited by the Company's auditors, SizweNtsalubaGobodo Grant Thornton Inc.,
who have expressed an unqualified audit opinion. The annual financial statements, including the
auditor's audit opinion is available on the Company's website at:
https://zeda.co.za/investors/annual-results
and on the JSE's cloudlink at: https://senspdf.jse.co.za/documents/2025/jse/isse/ZZDE/ye2025.pdf
Copies of the consolidated financial statements may be requested from Investor Relations at:
investorrelations@zeda.co.za
http://www.zeda.co.za
Date: 25-11-2025 07:30:00
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