South African e-commerce giant Takealot Group has reached a major milestone by reporting its first annual operating profit, marking a significant turning point for the country’s largest online retailer.
The achievement was announced in parent company Naspers’ financial results for the year ended 31 March 2026, highlighting strong revenue growth, improved margins and continued market leadership despite growing competition following Amazon’s entry into South Africa.
The company said years of investment in its marketplace, logistics network and customer loyalty programmes are beginning to translate into sustainable profitability.
Revenue Growth And Membership Drive Historic Profit
Takealot Group generated revenue of US$1 billion (approximately R17.3 billion) during the financial year, representing an 18% increase in local currency after excluding acquisitions.
For the first time in the company’s history, adjusted earnings before interest and tax (aEBIT) moved into positive territory, improving from a US$13 million loss in the previous financial year to a profit of US$11 million (around R190 million).
The improvement was supported by a 60% increase in adjusted EBITDA, which reached US$78 million (R1.35 billion), while gross merchandise value (GMV) climbed 14% to US$2 billion (R34.6 billion).
According to Naspers, stronger gross profit margins were driven by a favourable product mix, expanding retail media services and growing customer participation in the TakealotMORE subscription programme.
Takealot.com remained the group’s largest business, contributing US$906 million (approximately R15 billion) in revenue. The platform recorded 15% GMV growth and an 18% increase in customer orders during the year.
The company said TakealotMORE members accounted for 27% of total GMV, demonstrating the growing importance of subscription services in increasing customer loyalty and purchase frequency.
Meanwhile, food and on-demand delivery platform Mr D continued its profitable performance, generating revenue of US$138 million (around R2.4 billion), while maintaining stable operating profitability alongside double-digit growth in both revenue and merchandise sales.
Logistics Expansion Becomes Next Growth Strategy
Looking ahead, Naspers said Takealot is preparing to expand its logistics capabilities beyond its own marketplace by scaling Takealot Fulfilment Solutions (TFS) into an independent business serving external companies.
The initiative will allow the group to generate additional revenue by leveraging its nationwide warehousing and delivery infrastructure for third-party customers across South Africa.
Management believes the strategy creates a fully integrated ecosystem in which Takealot.com and Mr D provide transaction volumes, TakealotMORE strengthens customer engagement, and TFS converts existing operational capacity into a new income stream.
The company also reaffirmed that adjusted EBITDA and adjusted EBIT remain its primary performance indicators for evaluating management, incentive remuneration and dividend decisions, although these measures are not recognised under International Financial Reporting Standards (IFRS).
Naspers noted that the latest financial results demonstrate the long-term benefits of sustained investment in technology, logistics and customer experience, allowing Takealot to maintain its leadership position while responding to increasing competition in South Africa’s rapidly evolving e-commerce sector.
With Amazon continuing to expand locally, profitability represents an important milestone for Takealot as it enters its next phase of growth focused on operational efficiency, customer retention and scalable logistics services.
Source: Naspers Annual Financial Results 2026.