Karooooo founder and CEO Zak Calisto. Picture: Supplied
Karooooo Ltd has said that it was expecting adjusted earnings per share to be between R27.50 and R31.00 for the 2025 financial year after earnings surged by 21% year-on-year in the third quarter to a record R7.67, up from R6.34 in the comparatove period on the back of increasing Cartrack subscribers.
The JSE and Nasdaq listed owner of Cartrack and 74.8% of Karooooo Logistics today said that Cartrack subscribers increased 17% to more than 2.2 million at 30 November 2024, up from more than 1.9 million in the comparative period.
The company, which through its subsidiaries provides insights, real time data analytics and business intelligence predominantly on mobility assets, said Net Cartrack subscriber additions increased 15% to 86 617, from 75 484 a year before.
Karooooo’s operating profit increased 18% to R325 million in the third quarter, up from R275m a year before.
Given these results, Karooooo reaffirmed its previously stated guidance for the 2025 financial year that Cartrack’s number of subscribers was expected to be between 2.3 million and 2.4 million.
Cartrack's revenue makes up the majority of group revenue, and its subscription revenue is expected to be between R3.95 billion and R4.15bn, with operating profit margin expected to be between 27% and 31%.
Zak Calisto, CEO and founder of Karooooo, said the group delivered another robust quarter of customer acquisition while we continue to expand its distribution capabilities.
“Importantly, we have now settled in our newly built central office in South Africa, and now look forward to strong organic growth in this region,” Calisto said.
“Our investment in Europe over the last few quarters is starting to yield exciting results. Southeast Asia's subscription revenue grew by 26% on a constant currency basis and remains our biggest medium to long-term opportunity.
“Key to our success is our culture, product innovation and financial discipline as evidenced by our strong unit economics, cash generation, and clean balance sheet."
Karooooo also said it was strongly positioned for growth as it operates in a growing and largely underpenetrated market, with strong demand from customers needing to be competitive and digitalise their operations.
“Our proven, robust and consistently profitable business model, underpinned by a strong balance sheet and healthy cash position, gives us multiple levers for expansion,”it said.
“We expect our continuous investment in our AI products, platform and customer experience to generate robust results in the future. We remain confident that our track record of success, specifically our ability to generate healthy cash flows, is sustainable.”
BUSINESS REPORT