WeBuyCars set to shoot the lights out – but there is a catch

WeBuyCars is set to report an increase in headline earnings of over 100%, with core headline earnings, the company’s preferred financial metric, rising by between 12% and 17%. 

However, due to the issuance of 83 million new shares throughout the past financial year, the company’s core headline earnings per share are only expected to rise by between 0.8% and 6%. 

This was revealed in the company’s trading statement for the financial year ended 30 September 2025, with it expected to release its full results on 17 November.

The company made it clear that it utilises core headline earnings to measure and benchmark the underlying performance of the business. 

Core headline earnings represent headline earnings adjusted for certain non-recurring or non-cash items that, in the view of WeBuyCars’ board, may distort the financial results from period to period. 

WeBuyCars expects its core headline earnings to rise by between 12% and 17% in the current financial year from the R815.4 million reported in the prior period. 

Core headline earnings per share will only increase by between 0.8% and 6% due to the issuance of 83 million new shares. 

The issuance of these new shares in February, March, and April 2024 also distorts the basic earnings per share and headline earnings per share of the company. 

These new shares bring the total weighted average number of ordinary shares at 30 September 2025 to 417,401,341 – up from 375,029,205 in 2024. 

It said these new shares were issued in terms of the company’s pre-listing capital raise, which was approved by shareholders prior to the listing of WeBuyCars on the JSE. 

WeBuyCars said its basic earnings will rise by more than 100% from R343.1 million in 2024 to over R926.8 million when it releases results next month. 

As a result, basic earnings per share will also rise by more than 100%. The company expects headline earnings per share to more than double. 

There were no earnings per share or headline earnings per share adjustments for the past financial year, other than a loss on the sale of property, plant, and equipment of R2.2 million. 

However, the company did explain that the increase in its per share metrics was distorted by several transactions in the prior financial year. This exaggerates the expected increase. 

These transactions include the once-off R45 million fees the company paid upon listing on the JSE and the derecognition of the R426.5 million call option derivative asset, which was treated as a once-off fair value loss in the past financial year. 

The table below outlines the expected changes in WeBuyCars’ key financial metrics for the 2025 financial year.