The improvement was supported by favourable market conditions, disciplined strategy execution and resilient trading across key domestic business segments.

South Africa accounted for 60 percent of Group revenue and 67 percent of earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the period, reflecting the continued importance of the local market within the Group’s diversified geographic footprint. Performance in South Africa was underpinned by stronger vehicle sales volumes, improved operating margins and robust demand from the vehicle rental sector.

Group revenue increased by 3 percent to R57.7 billion, with growth primarily driven by higher sales volumes in the South African vehicle market. This increase was partially offset by lower new vehicle sales volumes in the United Kingdom commercial retail division and Australia Retail.

New vehicle sales across the Group increased by 4 percent, while pre owned vehicle sales rose by 3 percent, supported by higher volumes and returns from vehicle rental fleets. The South African market was a key contributor to these volume gains.

Rendering of services increased marginally, driven by stronger workshop revenue, higher vehicle rental income and increased commissions. Parts and other goods sales declined slightly on a Group basis, while insurance revenue decreased modestly. Despite these pressures, overall trading activity in South Africa remained resilient, supported by steady consumer demand and continued strength in rental related activity.

The Group sold 111 911 vehicles during the period, comprising 65 127 new vehicles and 46 784 pre-owned vehicles. The South African operations contributed the majority of volumes and earnings, with demand supported by the vehicle rental market and increased turnover at retail dealerships.

Operating profit increased by 8 percent to R2.738 billion, driven primarily by higher sales volumes of new and pre owned vehicles and supported by strong demand in vehicle rental. All business segments recorded higher operating profit contributions.

Net finance costs declined by 23 percent, reflecting lower average net debt and reductions in interest rates, while cash flows from operating activities increased significantly as a result of improved trading activity and working capital optimisation. These factors further strengthened the financial position of the Group’s South African operations.

Within the Retail and Rental segment, South African retail delivered a solid performance, with revenue increasing by 7 percent and operating profit rising by 22 percent. Revenue growth was driven by higher sales volumes, while operating profit benefitted from improved profitability at importer brand dealers.

Traditional brand dealerships continued to experience margin and volume pressure as a result of product repositioning and intensified competition, including the entry of new emerging brands offering competitively priced alternative models. These pressures negatively affected profitability at certain dealerships.

To support the long term sustainability of the South African retail business, a number of loss making dealerships underwent cost structure rebasing, overhead reductions and supplier optimisation. These interventions were aimed at improving operational efficiency and restoring profitability in a highly competitive market environment.

Vehicle Rental in South Africa delivered strong results, with revenue increasing by 7 percent and operating profit rising by 10 percent. Performance was supported by stable average daily rental rates, improved fleet cost management and an increase in vehicle utilisation to 71 percent. Strong demand for rental vehicles continued to underpin volume growth and contributed meaningfully to overall Group profitability.

In the Import and Distribution segment, revenue increased significantly as a result of higher volumes wholesaled through the dealer channel and reduced sales to vehicle rental on buy back arrangements. Operating profit increased strongly, supported by increased volumes and a reduction in buy back losses on vehicles sold to rental operators. This contributed positively to the performance of the South African operations, given the importance of the domestic dealer network to wholesale volumes.

Within the Aftermarket Parts segment, South African aftermarket parts delivered a resilient performance, with revenue increasing and operating profit growing at a faster rate. Growth was supported by improved inventory availability and increased market demand. The strategic expansion into new informal and underserved customer channels further supported performance and contributed to market share gains in a competitive environment.

Mobility Solutions revenue in South Africa remained broadly in line with the prior period, while operating profit increased due to higher fund profits and improved cost efficiencies. Although insurance revenue declined slightly, improved operational discipline supported earnings growth in this segment, according to the official results.

A quick look at the scale of Motus’s South African automotive operations:

• Motus operates a very large and extensive dealer network in South Africa, with around 323 retail dealerships representing numerous brands through multiple original equipment manufacturers (OEMs) in new and pre-owned vehicle sales. This includes passenger and commercial vehicle dealerships as well as dedicated pre-owned dealerships such as Auto Pedigree and Motus Select.
• In addition to dealerships, Motus has a substantial vehicle rental network with roughly 130 branches and kiosks under the Europcar and Tempest brands across Southern Africa.
• The group also operates a large aftermarket parts business with 470 outlets supporting its automotive ecosystem in South Africa.
• Motus is widely recognised as the largest automotive retail group in South Africa. Its dealer network is the largest in terms of footprint and volume of vehicles retailed through dealerships across the country.