iOCO (IOC) H1 2025 earnings summary

Executive summary

• EBITDA surged 159.3% year-over-year to ZAR 252 million, marking a significant turnaround and restoration of profitability across divisions.

• Gross profit increased by 2.8% to ZAR 823 million, with gross margin improving from 27% to 30%.

• Headline earnings per share swung from a loss of ZAR 0.11 to a profit of ZAR 0.19 per share, and profit after tax reached ZAR 123 million.

• Strong cash flow generation enabled a net cash increase of ZAR 143 million and a closing cash balance of ZAR 298 million, with free cash flow from operations at ZAR 302 million.

• New leadership and full transition to the iOCO brand, with a strategic focus on cost rationalization, decentralization, and disciplined capital allocation.

Financial highlights

• Operating profit rose to ZAR 213.8 million from a loss of ZAR 49.5 million year-over-year.

• Operating expenses reduced by 26.5% year-over-year, and net finance costs decreased from ZAR 59 million to ZAR 48 million.

• Bank term debt reduced from ZAR 644 million to ZAR 613 million, funded entirely by operational cash flow.

• Interest paid on overdraft dropped from ZAR 22 million to ZAR 6 million.

• Net asset value at period end was ZAR 617 million, up from ZAR 499 million.

Outlook and guidance

• Revenue expected to trough in 2025, with growth anticipated from 2026, focusing on organic growth, market expansion, and targeted acquisitions.

• Targeting net bank debt to EBITDA ratio of 1:1 by year-end 2025 and double-digit free cash flow per share growth.

• Investor day scheduled for 14 October 2025.

• Leadership remains committed to the turnaround strategy and capital structure improvement.