By Ukumbi Afrika South African e-commerce leader Takealot Group has achieved a significant milestone, reporting its first full-year operating profit as strong consumer demand, rising order volumes and rapid growth in its logistics business lifted annual revenue beyond the US$1 billion mark.
South Africa’s largest e-commerce platform, Takealot Group, has reported its first full-year adjusted operating profit, underscoring the continued expansion of the country’s digital retail market despite a challenging consumer environment.
Technology investor Naspers announced that the group generated adjusted earnings before interest and tax (aEBIT) of US$11 million for the financial year ended 31 March, reversing an adjusted operating loss of US$13 million recorded in the previous year.
The improved performance was supported by sustained growth across the group’s core businesses, with total revenue increasing 19% to US$1 billion, reinforcing Takealot’s position as South Africa’s leading e-commerce platform. Takealot.com, the group’s flagship online marketplace and a key competitor to Amazon in South Africa, continued to drive growth. Gross merchandise value rose 15%, while revenue increased 19% to US$906 million. Order volumes also expanded by 18%, enabling the platform to deliver an aEBIT profit of US$7 million.
Meanwhile, the group’s on-demand delivery platform, Mr D, which provides restaurant, grocery and retail deliveries, reported 11% revenue growth to US$138 million, maintaining an adjusted operating profit of US$4 million.
One of the strongest performers during the year was Takealot Fulfilment Solutions, the group’s logistics business serving third-party customers. The division recorded an impressive 93.5% year-on-year increase in revenue, reflecting growing demand for integrated fulfilment and last-mile delivery services.
The results highlight the increasing maturity of South Africa’s e-commerce ecosystem, with operational efficiencies, logistics capabilities and growing consumer confidence contributing to improved profitability.
Why It Matters
Takealot’s return to profitability represents an important milestone for Africa’s digital economy. The results demonstrate that sustained investment in logistics infrastructure, fulfilment services and customer experience can translate into profitable growth. For retailers, investors and technology entrepreneurs across the continent, the company’s performance reinforces the long-term commercial potential of African e-commerce as internet penetration, digital payments and online consumer adoption continue to expand.
Source: Reuters
Reporting: Nqobile Dludla.
Editing: Louise Heavens.