Karooooo, that owns 100% of Cartrack and 74.8% of Karooooo Logistics, reported strong results for the quarter ended May 31, 2024 (“Q1 2025”) and retained its positive outlook for the year.
Zak Calisto, CEO and Founder:
“The group’s robust results, distribution expansion, vertically-integrated cloud platform enhancements, new generation AI-Powered telemetry and the prospect of improved economic conditions in South Africa, give us confidence that we can continue to extend our long-standing track record of strong customer acquisition and profitable growth at scale.
Based on actionable data, we help our customers easily make decisions that improve their businesses and drive safety in their operations and on the road.
In South Africa, our move to a newly built central office in Rosebank is also expected to support higher organic growth as it will enable us to increase our headcount. In addition, our investment in Europe for growth is yielding very positive results. We expect Southeast Asia to present the most compelling growth opportunity for the group in the medium to long term.”
Cartrack subscribers increased 17% to 2,047,442 at May 31, 2024 (Q1 2024: 1,757,452), with net subscriber additions having increased by 88% to 75,910 (Q1 2024: 40,375). At the time of this press release, Cartrack had exceeded 2,1 million subscribers.
Karooooo’s operating profit grew by 34% to ZAR300 million (Q1 2024: ZAR224 million) and earnings per share by 41% to ZAR7.17 (Q1 2024: ZAR5.09).
Cartrack grew revenue by 15% to ZAR981 million (Q1 2024: ZAR853 million) and subscription revenue by 15% to a record ZAR960 million in Q1 2025 (Q1 2024: ZAR834 million). Subscription revenue equated to 98% of total revenue. Cartrack achieved strong customer acquisition in the quarter, building on its solid track record of growing at scale.
Karooooo Logistics grew revenue by 63% to ZAR101 million (Q1 2024: ZAR62 million). Karooooo Logistics focuses on delivery-as-a-service (“DaaS”) for our large enterprise customers wishing to scale and digitalise their e-commerce operations without investing unnecessarily in additional assets by connecting them into an elastic fleet of third-party delivery drivers.
Karooooo’s leading Operations Cloud now drives the digital transformation of over 124,000 commercial clients. The company consistently demonstrates high implementation success and maintains a 95% commercial customer retention rate across businesses of various sizes, industries and geographic locations.
As Karooooo retains its cash reserves in USD, Karooooo declared a dividend of USD1.08 payable in August 2024.
Full earnings: www.karooooo.com
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