{"id":477221,"date":"2023-01-21T15:00:22","date_gmt":"2023-01-21T13:00:22","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=477221"},"modified":"2023-01-21T15:02:37","modified_gmt":"2023-01-21T13:02:37","slug":"karooooos-mixed-results","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/investing\/477221-karooooos-mixed-results.html","title":{"rendered":"Karooooo’s mixed results"},"content":{"rendered":"

Karooooo\u2019s Q3 2023 results were mixed, with strong revenue growth but disappointing earnings growth.<\/p>\n

Karooooo generated R930 million in revenue for the quarter, which translated into a 29% year-on-year improvement.<\/p>\n

The strong growth continues the trend over the last two years and bodes well for the company\u2019s prospects.<\/p>\n

\"\"<\/a><\/p>\n

The strong revenue growth did not translate into higher earnings. In fact, Karooooo\u2019s earnings for the quarter were disappointing.<\/p>\n

The company reported a net income of R145.6 million for the quarter \u2013 a slight decrease from the previous comparable period\u2019s R146.2 million net income.<\/p>\n

It is a significant result as the previous five quarters did not experience a net income growth of less than 28%.<\/p>\n

\"\"<\/a><\/p>\n

The reasons for the lower net income figure can be seen in three segments of the company\u2019s income statement.<\/p>\n

    \n
  1. It had a lower gross profit margin compared to the previous period. Karooooo paid a higher cost of sales per unit than the previous period, putting strain on its gross margin.<\/li>\n
  2. It had higher proportional operating expenses \u2013 the ongoing expenses of running the business \u2013 which led to a lower operating profit margin and profit before tax than the previous period.<\/li>\n
  3. Karooooo paid a much higher effective tax rate on its profit before tax of 32% compared to the previous periods\u2019 27%, which ultimately pulled through to the net profit margin.<\/li>\n<\/ol>\n

    Despite the lower profit margins, Karooooo has delivered promising operational performance.<\/p>\n

    Cartrack subscribers increased by 14.2% to 1.68 million, continuing strong momentum in its core operations.<\/p>\n

    \"\"<\/a><\/p>\n

    It also expanded its presence in Southeast Asia and believed its largest growth would come from this region.<\/p>\n

    Karooooo said there is great potential in this region and increased its subscriber base in the area by 27% from the prior period.<\/p>\n

    It also recorded 14% revenue growth in Europe, underpinned by a 13% increase in subscriber numbers.<\/p>\n

    Karooooo\u2019s latest results confirmed its ability to rapidly grow the company and expand into new regions. The main challenge is containing costs during this growth phase.<\/p>\n

    \"\"<\/a><\/p>\n

    \n

    This article was first published by Daily Investor<\/a><\/strong> and is republished with permisison.<\/em><\/p>\n

    Now read:\u00a0How much money you would have if you invested R1,000 in South African tech companies in 2022<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

    Karooooo\u2019s Q3 2023 results were mixed, with strong revenue growth but disappointing earnings growth.<\/p>\n","protected":false},"author":341111,"featured_media":464337,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[66088,35,69535],"class_list":["post-477221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-cartrack","tag-headline","tag-karooooo"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/477221"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341111"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=477221"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/477221\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/464337"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=477221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=477221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=477221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}