South Africa

Karooooo reports impressive growth

Zak Calisto

Karooooo reported impressive second-quarter growth, with earnings increasing by 28% and subscribers growing by 14% year-on-year.

Meanwhile, Spear REIT is acquiring The Island for R185 million.

In other news, Grindrod’s disposal of Grindrod Bank and its unbundling from Remgro has been finalized.

Here is the biggest news of the day.

  • Karooooo reports impressive growth for the second quarter. Total subscribers grew by 14% from last year, surpassing 1.6 million, supported by demand from small and large enterprises wanting to digitally transform their businesses to fuel growth and remain competitive. Total revenue for the quarter increased 30% from Q2 2022 to R859 million, while earnings per share (EPS) grew 28% to R4.93. Cash generated from operating activities also looks very healthy, reaching R240 million for the quarter, an increase of 42% from last year.
  • Spear REIT is acquiring The Island for R185 million. This warehousing complex is located in Paarden Eiland and offers roof heights between 11m and 14m. The acquisition yield is 9.75%, with no vacancies currently. The weighted average escalation is 7.6%, while the weighted average lease duration is 2.45 years.
  • Grindrod’s disposal of Grindrod Bank and its unbundling from Remgro finalized. Yesterday, Remgro shares began trading “ex” entitlement to receive unbundled Grindrod shares. All conditions for Grindrod Bank’s sale to African Bank have also been fulfilled, and the disposal will take effect from 1 November. Grindrod also reported increased operational growth, with Maputo Port volumes up 23% against the 9-month period last year. Drybulk terminal volumes were up 47%, while their locomotive deployment rate improved from 32% to 63%.
  • Nu-World Holdings experiences a huge slump in earnings. The company released a trading statement for the year ended August 2022. Headline earnings per share (HEPS) fell by between 35% and 45%, from R6.50 to around R3.90. Nu-World’s financial results are due on 20 October.

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