Ioco delivers major turnaround with solid profit, cash recovery
For the first time, Ioco generated enough liquidity to fund repayments and investments without the need for asset sales or external refinancing. The company has repaid the majority of its historic debt, with only R26m remaining, expected to be cleared early in the 2026 financial year.
This year’s results include no provisions, restatements or normalisations, which the group says provides the market with clean, credible comparatives.
Revenue stabilises, margins and profits improve
Group revenue, excluding sold entities, came in at R5.58bn, slightly down from R5.65bn in 2024. The second half of 2025, however, marked a clear inflexion point, with 4% revenue growth following the implementation of Ioco’s new structure.
Gross profit margins improved to 28.7% from 27.3% a year earlier, while adjusted EBITDA increased by 68% to R515m. Operating profit rose sharply to R421m from R112m in 2024, and free cash flow per share improved from negative 21c to 53c. Net finance costs decreased by 24% to R89m.
Multi-year recovery strengthens financial position
Over a two-year period, between 2023 and 2025, the group recorded substantial gains across all key metrics, including operating profit and profit after tax, which both increased fourfold, and headline earnings per share, which doubled.
Cash generated by operations also doubled over the same period, while net debt was reduced by 59% since 2022.
Following the turnaround, Ioco plans to pursue targeted acquisitions to expand its capabilities and market share in high-growth technology segments.
The group said acquisitions, share buybacks and debt reduction form part of its capital allocation strategy for the next phase of growth.
Group CFO Ashona Kooblall described the year as one of transformation and strategic reset.
She said the improvement in free cash flow generation and earnings performance reflected the success of iOCO’s restructuring efforts. “Our progress shows that our choices strengthened financial
Co-CEO Rhys Summerton said that international operations currently account for around 10% of group revenue but form a key part of Ioco's diversification strategy.
“We are seeing robust growth in Egypt and Saudi Arabia, which is broadening our growth horizon,” he said.
