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Interim Results for the six months ended 31 March 2026 and Cash Dividend Declaration
Zeda Limited
Incorporated in the Republic of South Africa
Registration number: 2022/493042/06
JSE share code: ZZD
Bond code: ZFLI
ISIN: ZAE000315768
(Zeda or the Company or the Group)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026 AND CASH DIVIDEND DECLARATION
Zeda reported interim results reflecting the strength of our diversified business model, while reducing debt and
expanding the fleet. This performance was achieved amid a challenging trading environment.
GROUP HIGHLIGHTS
- Revenue increased by 3.2% to R5 544 million (HY2025: R5 372 million)
- Operating profit and margin sustained at R841 million (HY2025: R846 million) and 15.2% (HY2025: 15.8%)
- Profit before tax increased by 5.5% to R520 million (HY2025: R493 million)
- Earnings increased: BEPS and HEPS increased by 6.2% and 6.1% to 201 cents from lower operating and finance costs
- Net debt of R6 240 million with net debt to EBITDA maintained at 1.9x (HY2025: 6 379 million)
- ROE of 21.2% (HY2025: 22.1%) with a capital structure of 68:32
- ROIC of 12.3% ahead of WACC of 10.8%
- Interim dividend declaration increased by 45% to 80 cents
Our diversified business delivered top-line growth of 3.2% to R5 544 million, underpinned by a strict strategic focus.
The Leasing Business reported solid growth of 7.5%, while Car Sales volumes surged by 12.9% compared to the prior year.
Notwithstanding solid performance from the strategic priorities, the Car Rental Business partly negated this
accomplishment. Greater Africa remains a significant contributor, generating 21.3% (HY2025: 23.4%) to Group leasing
revenue. We generated double-digit growth in key markets such as Ghana, Zambia and Lesotho. However, Namibia and
Mozambique remained under pressure and weighed on the portfolio which declined by 2.1%. Operating costs increased by
only 1%, remaining below inflation. The expansion in business, despite these challenges, is a testament to the
strength of the diversified business model where pressure from mainly the Car Rental Business was mitigated by both the
Leasing Business and the Car Sales Business.
Basic earnings per share (BEPS) and headline earnings per share (HEPS) grew by 6.2% and 6.1%, respectively, to
201 cents. The revenue growth of 3.2% converted to growth in earnings due to lower finance costs which declined by 8.9%
compared to the prior year. The off-balance sheet strategy, coupled with the benefits of interest rate reductions and
a diversification funding strategy, drove the decline in finance costs. We also recognised a release of R31 million in
expected credit loss provisions for the first half of the year, reflecting enhanced credit risk management through
improved collections and reduced damage costs. This further contributed to earnings growth.
We increased the risk-to-lease ratio from 78:22 to 72:28 by leasing more high-value vehicles with challenging residual
values. This reduced residual value exposure and on-balance-sheet funding requirements. Although our operating lease
liabilities have increased, we have also expanded our fleet by adding vehicles that have a favourable total cost of
ownership to our balance sheet, allowing us to keep growing our Car Sales Business.
Net debt reduced to R6 240 million, from R6 379 million in HY2025, despite a 3.1% expansion in the rental fleet
supporting revenue generation during the period. This is the true benefit of the off-balance sheet strategy that
resulted in a R750 million reduction in rental business debt in an up-fleeting cycle.
The capital allocation framework delivered ROE of 21.2% and achieved ROIC of 12.3%, exceeding WACC of 10.8%.
We reported cash and cash equivalents of R958 million and returned cash to shareholders. The Board declared an interim
dividend of 80 cents per share, in line with our dividend policy, representing a 40% payout of net profit after tax.
GROUP PERFORMANCE
R'million HY2026 HY2025 Variance
Revenue 5 544 5 372 3.2%
Operating profit 841 846 -0.6%
Operating margin (%) 15.2 15.8 -0.6ppts
Basic earnings per share (cents) 201.2 189.4 6.2%
Headline earnings per share (cents) 201.2 189.7 6.1%
Net debt to EBITDA (x) 1.9 1.9 -
Return on equity (%) 21.2 22.1 -0.9ppts
Net asset value per share (cents) 1 846.4 1 680.4 9.9%
Interim dividend per share (cents) 80 55 45.5%
OUTLOOK STATEMENT
The economic growth observed in the first quarter did not persist into the second quarter due to supply-side
constraints and significant increases in fuel prices associated with geopolitical tensions in the Middle East.
These factors are anticipated to lead to higher inflation and rising interest rates. Notwithstanding these
developments, we remain resolute and disciplined in executing our growth strategy.
The momentum achieved in the Leasing Business, including the public sector, is expected to be sustained in the second
half of the year. This will be coupled with improvements in Greater Africa as we focus on performance recovery in
Namibia which is expected to result in a resurgence of the portfolio. We expect the rental market to remain highly
price-sensitive. However, we have implemented strategies to drive our subscription offering and base in the market.
In addition, we will continue to leverage the strength of our existing partnerships and onboard new partners in the
leisure market as we position this segment for the continued momentum.
In the second half of the year, the de-fleet cycle and the "dispose right" of our operating model become critical.
The vehicle mix in our on-balance-sheet rental fleet favours smaller vehicles, placing us in a stronger position in
the used car market as consumers face pressure from higher fuel prices and potential interest rate increases.
This will support the growth of our used car business while our strategic intent to focus on retail channels provides
margin enhancement.
We expect further reductions in our debt due to the de-fleet cycle, with further finance cost savings as we continue
to benefit from the fleet acquisition and funding diversification strategies. This will continue to support earnings
growth.
We will continue to deploy our agile operating model to optimise our balance sheet and navigate the complex trading
environment. Disciplined cost containment will remain a key financial framework to mitigate margin pressures.
Following approval of the Africa strategy, the Group has retained Ghana as a strategic anchor from which to serve the
West Africa region under Avis Budget Group's broadened licence framework. We have commenced mapping opportunities in
West Africa where we can follow our customers and expand in a disciplined manner. The approach remains asset-light and
customer-led, with capital deployed only where there are secured customer contracts, embedded demand and appropriate
risk-adjusted returns.
Market selection across the continent is governed by a disciplined risk framework. We will prioritise jurisdictions
where the Group can repatriate cash, manage currency volatility and access adequate funding liquidity. Countries that
do not meet these gating criteria will be deferred until conditions improve.
This regional model is underpinned by a treasury management framework designed to centralise foreign exchange risk
management, enable efficient raising and deployment of offshore capital, and facilitate cash pooling across the region.
This provides the financial infrastructure required to fund growth, preserve liquidity and support a measured,
contract-backed expansion into West Africa.
DIVIDEND DECLARATION
The Board has declared an interim dividend (Dividend number 5) of 80 cents per share in respect of the half year ended
31 March 2026, on 22 May 2026, subject to the applicable dividend withholding tax rate of 20% levied in terms of the
Income Tax Act (Act No. 58 of 1962) (as amended). Accordingly, for those shareholders that are not exempt from paying
dividend withholding tax, the net ordinary dividend will be 64 cents per share. The dividend has been declared out of
income reserves, and the number of ordinary shares in issue at the date of this declaration is 189 641 787.
The Company tax number is 9042025305.
The following dates apply to the dividend:
Last date to trade cum dividend Monday, 15 June 2026
Ordinary shares trade ex-dividend Wednesday, 17 June 2026
Record date Friday, 19 June 2026
Payment date Monday, 22 June 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 17 June 2026
and Friday, 19 June 2026, both days inclusive.
26 May 2026
JSE Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Debt Sponsor
The Standard Bank of South Africa Limited
FORWARD-LOOKING STATEMENT
This statement contains forward-looking statements. All statements, other than statements of historical facts,
including, among others, statements regarding our strategy, future financial position and plans, objectives, projected
costs, anticipated cost savings, financing plans and projected levels of growth in the markets, are forward-looking
statements. Forward-looking statements can be identified by terminology such as "may", "might", "should", "expect",
"envisage", "intend", "plan", "project", "estimate", "anticipate", "believe", "hope", "can", "is designed to", or
similar phrases. However, the absence of such words does not necessarily mean a statement is not forward-looking.
Forward-looking statements involve several known and unknown risks, uncertainties and other factors that could cause our
actual results and outcomes to be materially different from historical results or any future results expressed or
implied by such forward-looking statements. Factors that could cause our actual results or outcomes to differ
materially from our expectations include, but are not limited to, those risks identified in the Zeda financial reports
available at http://www.zeda.co.za.
Zeda cautions readers not to place undue reliance on these forward-looking statements. All written and verbal
forward-looking statements attributable to Zeda, or persons acting on behalf of Zeda, are qualified in their entirety
by these cautionary statements. Unless we are required by law to update these statements, we will not necessarily
update any of these statements after the date of publication of this document so that they conform either to the actual
results or to changes in our expectations.
Any forward-looking information disclosed in these interim results for the six months ended 31 March 2026
("results announcement") has not been reviewed, audited, or otherwise reported on by our independent external auditors.
FURTHER INFORMATION
The short-form interim financial results announcement is the responsibility of the Board. It is only a summary of the
information contained in the condensed consolidated interim financial statements for the six-month period ended
31 March 2026 and does not contain full or complete details.
Any investment decisions should be based on the condensed consolidated interim financial statements published on the
JSE's cloudlink on Tuesday, 26 May 2026. The condensed consolidated interim financial statements have been reviewed by
the Company's auditors, SizweNtsalubaGobodo Grant Thornton Inc., who have expressed an unqualified reviewed conclusion.
The condensed consolidated interim financial statements, including the auditor's review conclusion is available on the
Company's website at: https://zeda.co.za/investors/interim-results and on the JSE's cloudlink at:
https://senspdf.jse.co.za/documents/2026/jse/isse/ZZDE/ie2026.pdf
Copies of the condensed consolidated interim financial statements may be requested from Investor Relations at:
investorrelations@zeda.co.za
http://www.zeda.co.za
Date: 26-05-2026 07:05:00
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