Chamwe Kaira
Zeda Limited says Namibia, Zambia and Ghana recorded stronger economic performances during the financial year, giving its Sub-Saharan operations a more supportive environment. This comes as the automotive services company posted improved earnings and higher operating profit for the year ended 30 September 2025.
Zeda holds the licence to the Avis brand in South Africa and 10 other countries in Sub-Saharan Africa. It operates the Avis and Budget brands under a long-term agreement with Avis Budget Group. The company manages more than 20 000 vehicles across several rental categories and offers a range of value-added products.
The group says South Africa showed only modest growth, but conditions in Namibia and the two other regional markets were stronger. This helped offset pressures in territories such as Mozambique, where political instability has slowed progress.
Zeda reported revenue of N$10.65 billion, up 1.7%. Operating profit grew 10.8% to N$1.62 billion. Headline earnings per share rose 15.7% to 361 cents, and basic earnings per share were up 12.5% at 360 cents. Gross profit increased to N$4.35 billion, and the margin remained stable at 40.9%.
The company attributes its performance to disciplined fleet management, better utilisation and growth in its leasing business, which expanded 15.7% across Sub-Saharan Africa. It also noted changing vehicle market dynamics, including pressure on used-car prices and rising competition from Asian manufacturers.
Zeda ended the year with net debt of N$5.18 billion and a net-debt-to-EBITDA ratio of 1.5x. Return on equity was 21.9%. The board declared a final dividend of 126 cents per share, bringing the total dividend for 2025 to 181 cents, a payout ratio of 50%.
The company plans to expand further across the continent after Avis Budget Group extended its operating licences to East Africa, West Africa and Central Africa. The board has approved an Africa growth strategy and says the improved performance of its Ghana business supports expansion in West Africa.
“Zeda’s outstanding achievement of N$10.6 billion in revenue is attributed to the traction witnessed in the leasing portfolio across South Africa and Greater Africa and subscription and car sales businesses. With new licences secured in East, West and Central Africa, the business is positioned to pursue a more cohesive strategy for Africa, while scaling with purpose.”
“Entering the new year, Zeda possesses the strategic clarity, financial strength, and operational momentum necessary for purposeful scaling.” As we expand across Africa and deepen our customer value proposition, our disciplined execution will continue to unlock long-term, quality returns for shareholders and deliver integrated mobility solutions that move people, businesses, and economies forward,” the company said.
Caption
Zeda Limited holds the license for the Avis brand in South Africa and 10 other countries in sub-Saharan Africa.
- Photo: Contributed
