The WeBuyCars share price crashed sharply on Tuesday morning, shedding more than 12% in early trade after the vehicle trading group warned that earnings growth had slowed in the latter part of its financial year.
The slump wiped about R2.7 billion off the company’s market value, cutting it to roughly R19.8 billion.
According to News24, the drop came after WeBuyCars issued a trading statement to shareholders indicating that core headline earnings were expected to rise between 12% and 17% for the year ending 30 September 2025, reaching as much as R958 million.
While that represents overall growth, it signals a slowdown compared to the company’s first-half performance, when earnings jumped more than 25% to R508 million.
On a per-share basis, WeBuyCars said core headline earnings were expected to increase between 0.8% and 6%, largely due to the additional shares issued during its April 2024 listing on the Johannesburg Stock Exchange (JSE).
The company’s share price, which traded below R40 in April and peaked near R60 by July, dropped to R47.32 during Tuesday morning’s sell-off.
In its official trading update, WeBuyCars said its full-year results reflected strong growth in total vehicle sales but admitted that the pace of profit expansion had eased during the second half.
The group attributed this partly to costs related to its JSE listing and an increase in the number of shares in circulation.
The statement, filed under JSE’s listings requirements, confirmed that core headline earnings — a key measure of ongoing business performance — reached between R917.2 million and R958 million for the year.
Headline earnings per share are expected to range from 219.2 cents to 230.1 cents, up just slightly from 217.4 cents the previous year.
Basic earnings, which include once-off gains, more than doubled to between R926.8 million and R944 million, reflecting accounting adjustments from the derecognition of a call option derivative linked to the company’s founders’ shareholding.
However, the company’s leadership highlighted that this was a once-off, non-cash effect unrelated to ongoing trading performance.
WeBuyCars has expanded aggressively across South Africa, opening large car “supermarkets” in cities such as Vereeniging, Landsdowne in Cape Town, and Montana in Pretoria.
These outlets display hundreds of vehicles and form part of the company’s strategy to strengthen its hold on the used-car market.
The group’s latest data show that pre-owned vehicles now account for 76% of all new registrations in South Africa, as more consumers shift away from new car purchases due to high interest rates and inflation.
Despite this growing market share, WeBuyCars’ slower profit growth indicates that operating costs and competition in the used-car segment may be catching up with the business.
The company’s full audited financial results for the year ended 30 September 2025 are scheduled for release on 17 November 2025, when WeBuyCars will host a live webcast for investors and analysts.
