South Africa’s largest e-commerce group, Takealot, expects to be profitable at the end of its financial year in March 2026.
This is according to Takealot Group chief financial officer Tessa Ackermann who, speaking at a media even ton Tuesday, said the e-retailer will leverage the peak season to drive higher sales while dialling back capital expenditure.
“If you look at the retail cycle, a lot of money is made between October and December. We are expecting higher revenue off a stable cost base, so the second half will be profitable. And for the full year, should everything go right, we should be in a profitable position,” said Ackermann.
The group on Monday reported 23% year-on-year revenue growth, excluding mergers and acquisitions. Gross merchandise value increased 16% year on year in rand terms while Ebitda – earnings before interest, tax, depreciation and amortisation – increased by US$10-million to $28-million.
According to Ackermann, the group has made significant investments, through capex, into strengthening operational capacity. This includes distribution centres, last-mile logistics through the group’s newly minted Takealot Fulfilment Services business and artificial intelligence to drive more efficient internal processes.
Competition intensifying
She said it takes around 18 months for group to get to a point where capital investments begin converting into gains for the business and Takealot will leverage past investments as it heads into the peak season. Of Takealot Group’s three main business units – takealot.com, Takealot Fulfilment Services and Mr D Food – Mr D Food is already profitable. Ackermann said TFS is only “slightly” profitable, with more growth expected over the next six months.
“It is one thing to grow and another to grow profitably. We have invested in a lot of assets upfront, but just adding distribution centres as we expand does not work from a unit economics perspective,” said Ackermann.
Takealot is not blind to the threat from international competitors such as Amazon and Shein. Group CEO Frederik Zietsman said the competition from international outfits has intensified over the last year, but some macroeconomic factors have put consumers in a more favourable financial position, contributing to industry-wide growth.
Read: Takealot sees off competitive threats to deliver revenue surge
“The consumer has had a tough time since the onset of the Covid-19 pandemic and beyond, but we are seeing that turn. We are seeing inflation come down, and interest rates coming down has helped clear a lot of debt for consumers,” said Zietsman. – © 2025 NewsCentral Media
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