iOCO (IOC) H2 2025 earnings summary

Executive summary

• Achieved profitability for the first time in three years, driven by cost rationalization, decentralization, and a stable leadership team.

• All continuing business units are now profitable, with strong operating cash flows and significant debt reduction.

• Recurring revenue base increased to 48% from 37% year-over-year.

• Strategic focus on capital allocation, organic growth, market expansion, targeted acquisitions, and leadership incentives aligned for sustainable returns.

Financial highlights

• Gross profit rose 2.4% to ZAR 1.6 billion year-over-year, with gross margin improving to 29% from 28%.

• EBITDA increased by 50% to ZAR 516 million; operating profit up 403% to ZAR 421 million.

• Cash generated from operations reached ZAR 567 million, with nearly 100% cash conversion.

• Net debt reduced by 59% to ZAR 247 million; annual debt repayments fully funded from operations.

• HEPS improved from a loss of ZAR 0.0021 to a profit of ZAR 0.40 per share.

Outlook and guidance

• FY 2026 EBITDA guidance of ZAR 580–600 million and recurring revenue targeted at 60% of total revenues.

• Free cash flow per share expected to exceed 60 cents, with long-term double-digit growth targeted.

• Continued focus on acquisitions, share buybacks, international expansion, and investment in talent and technology training.