Singapore-based Karooooo posted a 23% increase in revenue, an 8% growth in earnings per share and a record operating profit of R471.56 million.
The company released its results for the six months ended 31 August 2023 (H1 2024) today, which revealed strong results.
Karooooo owns 100% of Cartrack, 100% of Carzuka and 70.1% of Karooooo Logistics.
In H1 2024, Karooooo saw a 15% increase in Cartrack subscribers to 1.8 million, bringing the segment’s revenue for the period to R1.74 billion – an 18% increase.
The company’s revenue increased to R2.04 billion, up 23% from the previous year. The company’s revenue increased by 18% on a constant currency basis.
Carzuka’s revenue saw a 44% increase, while Karooooo Logistics grew revenue by 94%.
Karooooo grew its operating profit by 8% to a record of R472 million (HY 2023: R436 million) and earnings per share by 8% to R10.70 (HY 2023: R9.89).
Cartrack grew operating profit by 9% to a record R484 million (HY 2023: R445 million).
Karooooo Logistics also delivered a record operating profit of R12 million (HY 2023: R0.4 million).
However, Carzuka’s operating loss was R25 million (HY 2023: R10 million loss).
Karooooo’s adjusted EBITDA for the year increased by 9% to R799 million (HY 2023: R731 million).
CEO and founder Zak Calisto said, “Our proven, robust and consistently profitable business model, underpinned by a strong balance sheet and healthy cash position, gives us multiple levers for expansion.”
“We expect our investment in marketing and sales, and the realization of economies of scale across our business segments, to continue to generate robust results.”
“We remain confident that our track record of success, specifically our ability to generate healthy cash flows, is sustainable.”
Looking forward, the company wants to grow Cartrack’s subscribers to between 1.9 million and 2.1 million.
It also wants to grow Cartrack’s subscription revenue to between R3.4 million and R3.6 million.
The company did not declare a dividend.