Mr D Food is profitable for the first time

Published: 2024-06-24 11:51 +02:00 by Nkosinathi Ndlovu tag: Retail and e-commerce

Parent Takealot Group is tracking in line with Naspers’s global e-commerce portfolio despite a tough macro climate.

Mr D Food achieved profitability for the first time in its history in the 2024 financial year. The fast-food delivery company stood out in the Takealot Group, which also includes e-commerce retailer Takealot.com and the fashion-focused Superbalist.com. The group grew gross merchandise value by 3% and revenue by 8% (in rands) year on year. “ Mr D grew gross merchandise value (GMV) by 16% in local currency, despite tough trading conditions in its traditional middle-income market. The business reached profitability for the first time, with a trading profit of US$3-million (R54-million at the time of writing) for the financial year,” Naspers said on Monday. Temu and Shein have made inroads in the market, and the recent arrival of Amazon will intensify competition further

Takealot.com grew GMV by 3% and reduced trading losses by $4-million (R72-million), excluding mergers and acquisitions from the previous financial year. The Takealot.com marketplace seller base exceeded 10 000 active sellers in March 2024. Naspers said normalised consumer behaviour post-Covid and a challenging consumer environment, driven by high interest rates and high inflation, impacted the business. “There was also increased fragmentation as competitors continue to invest heavily in e-commerce capability. Temu and Shein have made inroads in the South African market, and the recent arrival of Amazon will intensify competition further,” it said. Naspers portfolio Takealot Group forms part of the Naspers e-commerce portfolio, which is made up of online retail, classifieds and fintech businesses spread across the world. On a consolidated basis, the portfolio achieved profitability in the second half of the 2024 financial year and reported full year profits as well – ahead of Naspers’s 2025 financial year target. E-commerce consolidated revenue from continuing operations increased by $504-million (R9.1-billion), or 9% from $5.8b-billion (R104-billion) in 2023 to $6.3bn (R114-billion) in 2024. Naspers attributed the outcome to strong revenue growth in its food delivery and classifieds businesses. “For the first time, e-commerce recorded a trading profit of $24-million (R434-million), from a trading loss of $435-million (R7.9-billion) in 2023, with food delivery and classifieds delivering ahead of expectations,” said Naspers. – © 2024 NewsCentral Media Read next: Fabricio Bloisi outlines his plan for Naspers and Prosus

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