Karooooo reports strong growth

Karooooo released its unaudited fourth quarter results for the period ended 29 February 2024, revealing a sharp increase in Cartrack subscribers, subscription revenue, and operating profit.

Subscription revenue grew by 18%, from R794 million in Q4 2023 to R953 million in Q4 2024, while subscribers increased by 15%.

Karooooo noted that the relative increase drops to 15% on a constant currency basis.

Cartrack subscribers increased from 1.71 million in Q4 2023 to 1.97 million in Q4 2024. It also reported a 65% increase in net Cartrack subscriber additions.

Karooooo also released its unaudited full-year results for 2023/2024, revealing record operating profit for the company.

Its operating profit grew by 18% to R1.043 billion from R882 million in the 2022/23 financial year, while its earnings per share grew by 24% to R23.85

Looking at Cartrack specifically, operating profit grew by 17% to R1.069 billion.

This was accompanied by a 17% increase in subscription revenue, from R3.01 billion in 2022/23 to R3.54 billion in 2023/24.

“We believe Karooooo is well positioned for growth,” the company said.

“We operate in a growing and largely underpenetrated market, with strong demand coming from customers needing to differentiate and digitalise themselves.”

Looking ahead, the company set guidance for the 2024/25 financial year with the following targets:

• Grow Cartrack’s subscriber base to between 2.2 million and 2.4 million;
• Grow Cartrack subscription revenue to between R3.9 billion and R4.15 billion;
• Grow Cartrack’s operating profit margin by 27% to 31%; and,
• Increase Karooooo’s earnings per share to between R27.50 and R31.00.