Saturday, 18 May 2024


Karooooo reports strong growth and bullish outlook for FY 2025 By

Arm Holdings Sees IPO At The Top Or Above Its Indicated Range- Reuters By

Karooooo (KARO.JO), the parent company of Cartrack, has announced robust financial results for the fourth quarter and full financial year of 2024, with a strong performance in subscriber growth and revenue. The company’s earnings per share increased by 27% to ZAR6.52 for the quarter, and the total revenue growth for Q4 was reported at 20%. Cartrack’s subscription revenue reached ZAR3,523 million, and the operating profit margin stood at 30%. With over 1,972,000 subscribers and a high customer retention rate, Karooooo is positioned for continued expansion, especially in Southeast Asia. The company is committed to declaring a dividend in Q2 of FY ’25 and plans to carry on with its share buyback program.

Key Takeaways

  • Karooooo reports over 1,972,000 subscribers with a high customer retention rate.
  • Cartrack subscription revenue reached ZAR3,523 million.
  • Earnings per share for the quarter increased by 27% to ZAR6.52.
  • Operating profit margin of 30%, with plans to declare a dividend in Q2 of FY ’25.
  • Strong growth in subscribers and revenue, particularly in Southeast Asia.
  • The company’s platform leverages AI and data analytics for operational efficiency.

Company Outlook

  • Projected subscriber count between 2.2 million to 2.4 million for FY 2025.
  • Expected Cartrack subscription revenue between ZAR3.9 million to ZAR4.15 million.
  • Anticipated operating profit margin between 27% to 31%.
  • Earnings per share projection for Karooooo between ZAR27.5 to ZAR31.
  • Continued investment in AI products, platform development, and customer experience.

Bearish Highlights

  • Challenges in the South African transport industry, with long-haul companies not experiencing significant growth.
  • No acquisitions currently in the pipeline.

Bullish Highlights

  • Strong unit economics due to low cost of acquiring customers, high customer lifetime value, and retention rate.
  • Growth opportunities in Europe through partnerships with most OEMs.
  • Significant growth in revenue and operating profit for Karooooo Logistics, a subsidiary of Cartrack.
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  • The article does not mention any specific misses from the earnings call.

Q&A Highlights

  • Cartrack has integrated with EV vehicles and advanced EV technology; EV adoption is not expected to negatively impact the business.
  • Focus on building distribution capabilities and expanding into other provinces to accelerate subscriber additions in Southeast Asia.
  • No current plans for acquisitions,…

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