Karooooo shares skyrocket following strong results

Karooooo’s share price shot up by over 7% after it reported strong results for its latest financial year, although it has since moderated to a just over 4% increase.

The company released its financials for the fourth quarter ended 29 February 2024, and its unaudited full-year results for 2023/2024, which revealed an impressive performance.

Karooooo owns Cartrack, a stolen vehicle recovery, insurance telematics and fleet management business.

The company’s revenue has increased by 19.92% since 2023, growing from R3.51 billion to R4.21 billion.

Profitability also showed strong growth, with a 24% increase in its net profit from R597 million to R738 million.

Cartrack saw a 15% increase in its subscriber numbers from 1.72 million in Q4 2023 to 1.97 million in Q4 2024.

CEO Zak Callisto said the first two months of the current financial year showed strong growth, with current total subscribers increasing to well over 2 million.

Its Asia Pacific, Middle East, and United States regions saw the greatest subscriber growth, increasing from 185,147 in 2023 to 230,141 in 2024 – a 24% increase for the reported period.

The company also saw a 7.21% increase in its share price on Thursday after the results were released. This puts Karooooo’s YTD share price return for the year at 18.75%.

The company also set itself the following targets for the 2024/25 financial year –

• 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%
• Increase Karooooo’s earnings per share to between R27.50 and R31.00

“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.”

The company said its proven, robust and strong track record of execution is underpinned by a solid balance sheet and healthy cash position. 

“We expect our continuous investment in our AI products, platform and customer experience to continue to generate robust results in the future.

The company said it remains confident that its track record of success – specifically its ability to generate healthy cash flows – is sustainable.

Karooooo financial overview