Naspers has reported a trading loss of $14 million for the Takealot Group for the fiscal year ending March 31, 2024, but managed to reduce Takealot.com’s trading losses compared to the previous year amidst a tough economic environment and rising competition.
The Takealot Group, which includes Takealot.com, Mr D, and Superbalist, reported a combined revenue decrease of 2% year-on-year to $792 million (R14.9 billion). However, trading losses dropped by $8 million (R150 million).
“There was increased competition throughout the year as competitors continued to invest heavily in e-commerce capabilities,” Naspers stated, highlighting the impact of Chinese retail importers Temu and Shein.
Takealot.com’s gross merchandise value (GMV) grew by 3%, while trading losses were reduced by $4 million (R75 million). The marketplace seller base also exceeded 10,000 sellers in March 2024.
Operating costs rose due to new warehouses and hires from the previous year, but the company mitigated this by scaling down activities, driving efficiencies, and implementing a hiring freeze. Diesel tanks were also installed at distribution centres to offset high fuel prices.
Mr D, the food delivery and logistics operator, reported a trading profit of $3 million (R56 million) — its first recorded profit. GMV for Mr D grew by 16% during the period. Naspers attributed this success to Mr D’s superior service, better restaurant selection, and expansion into new product categories, including pet food, gifts, flowers, and general merchandise, moving towards a convenience-delivery model.
Superbalist struggled with revenue growth due to competition from international players like Temu and Shein, offering cheap clothing products in South Africa.
The South African e-commerce giant has yet to turn a profit since its inception 15 years ago. Former Takealot CEO Kim Reid had projected a profit by 2021 after reducing losses between 2019 and 2021, but the company incurred a loss of $22 million (R407 million) in 2023, up from $7 million (R129 million) in 2022.
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