The Takealot Group, South Africa’s leading e-commerce platform, has reported another financial loss for the 2025 fiscal year, but parent company Naspers remains optimistic, projecting that the group will achieve profitability within the current financial year.
According to Naspers’ full-year results for the period ending March 31, 2025, Takealot Group delivered robust growth in the second half of the year, driven by enhanced customer experiences and the growing adoption of its TakealotMore subscription service.
Financial Highlights
- Revenue surged by 20% year-on-year in US dollar terms, reaching $823 million (approximately R14 billion).
- Gross Merchandise Value (GMV) rose by 13%, despite a sluggish start to the year.
- Gross profit margin improved by 1 percentage point, supported by strong performance in high-growth verticals such as Mr D Grocery.
Despite these gains, the group posted an adjusted loss before interest and taxes (aEBIT) of $12 million (R217 million), attributed to increased investments in marketing and infrastructure. This represents an improvement from the $14 million loss recorded in 2024.
The aEBIT metric, a non-IFRS measure, adjusts EBITDA for depreciation, software amortisation, and lease-related interest. While not a standard accounting measure, Naspers uses it to assess operational performance across its portfolio.
Strategic Investments and Market Positioning
Takealot’s increased marketing spend was aimed at fortifying its market position in anticipation of heightened competition, particularly following the entry of Amazon into the South African market in 2024. The group also made strategic moves to streamline operations and enhance logistics capabilities:
- Divestiture of Superbalist.com, a fashion e-commerce platform.
- Acquisition of M24 Logistics, strengthening its delivery and warehousing infrastructure.
- Expansion of its electric vehicle fleet, now one of the largest in South Africa, as part of its sustainability and efficiency drive.
Platform Performance
- Takealot.com posted 19% revenue growth (17% in local currency), reaching $706 million (R12.7 billion). GMV rose by 13%, with a 15% increase in order volume, driven by emerging product categories.
- Mr D, the group’s food and grocery delivery arm, recorded 11% revenue growth (8% in local currency) to $117 million (R2.1 billion). Grocery GMV soared by 81%, and the platform achieved a positive aEBIT of $4 million (R72 million).
Naspers stated:
Both the Takealot.com and Mr D platforms continue to excel, cementing their leadership in South Africa’s e-commerce market through innovation and customer focus.
Outlook and Broader Group Performance
Naspers reaffirmed its confidence in Takealot’s trajectory, stating that the group is on track to reach profitability in FY2026. This optimism is underpinned by growing customer loyalty through TakealotMore, which is driving higher shopping frequency and repeat purchases.
While Takealot is a household name in South Africa, it represents just one part of Naspers’ vast global portfolio. The group’s international operations, particularly through its Dutch-listed arm Prosus, continue to be the primary source of earnings.
- Prosus Ecommerce delivered $443 million (R8 billion) in aEBIT for FY2025.
- Consolidated aEBIT across the group rose by $284 million to $130 million (R2.3 billion).
- Core headline earnings jumped 46% to $3.1 billion (R56 billion), buoyed by strong performance in e-commerce and its stake in Tencent.
Naspers CEO Fabricio Bloisi highlighted the group’s transformation into a global tech operator focused on lifestyle e-commerce. Recent milestones include:
- The May 2025 acquisition of Despegar, now being integrated into iFood’s Clube membership.
- Progress on the planned acquisition of Just Eat Takeaway.com, aimed at creating a new AI-powered food delivery leader in Europe.
Shareholder Returns
- Earnings per ordinary share nearly doubled to 3,099 US cents (R55).
- Headline earnings per share rose to 1,529 US cents (R27).
- The Prosus board recommended a 100% increase in dividends, from 10 euro cents to 20 euro cents per share.
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue (US$m) | 7 181 | 6 431 |
| Operating profit/(loss) (US$m) | 124 | -562 |
| Earnings per N ordinary share (US cents) | 3 067 | 1 532 |
| Headline earnings for the year (US$m) | 2 595 | 1 414 |
| Headline earnings per N ordinary share (US cents) | 1 518 | 759 |
| Core headline earnings for the year (US$m) | 3 110 | 2 088 |
| Core headline earnings per N ordinary share (US cents) | 1 819 | 1 121 |
