Ioco On The Mend As Cost Rationalisation Pays Off

According to iOCO's interim results for the six months to January 2025, published on Tuesday, gross profit for the period excluding non-recurring items increased by 2.8 year on year to R823-million, with gross profit margins growing from 27 to 30.

"In the first stage of our turnaround plan, we prioritised disciplined cost rationalisation and strategic investments in growth. A thorough review of corporate and head office functions uncovered inefficiencies, which were addressed by streamlining processes to create a nimble and decisive group, all while maintaining robust governance standards," iOCO chief financial officer Ashona Kooblall said in commentary alongside the results.

"This stage required us to make bold and necessary decisions, including divesting onerous or loss-making operations, to fully concentrate on our core competencies."

Although group revenue fell by 6.4 year on year to R2.7-billion, Ebitda - earnings before interest, tax, depreciation and amortisation - grew by an impressive 159 to R252-million in the six months to January. iOCO said a stronger revenue base improved the group's operational efficiency, which led to higher margins across the board.

Operating margin grew to 7.8, up from 0.3 the previous year. Similarly, Ebitda margin grew from 3.1 in the first half of 2024 to 9.2 in the first half of 2025.