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Short-form Announcement: Unaudited Second Quarter and Half Year 2025 Results
Karooooo Ltd.
(a public company incorporated and registered in the Republic of Singapore)
(Unique Entity Number: 201817157Z)
JSE share code: KRO NASDAQ share code: KARO
ISIN: SGXZ19450089
("Karooooo")
Short-form Announcement: Unaudited Second Quarter and Half-Year 2025 Results
Karooooo, that owns 100% of Cartrack and 74.8% of Karooooo Logistics (collectively, "the group"),
issued a press release announcing its second quarter ("Q2 2025") and Half-Year ("HY 2025") unaudited
results ended August, 31 2024 and included such press release as an exhibit to its form 6-K (the "Report
on Form 6-K") dated 15 October 2024 furnished to the United States Securities and Exchange
Commission ("SEC"). Investors are referred to the full press release as published and available on the
Karooooo website at www.karooooo.com.
Second Quarter 2025 Highlights:
(Comparisons are relative to Q2 2024, unless otherwise stated.)
• Karooooo Adjusted Earnings Per Share1 increased 31% Y/Y to a Record ZAR7.35
• Raising FY25 Outlook for Subscribers and Cartrack Subscription Revenue at Midpoint
1 Adjusted earnings per share, (a non-IFRS measure), is defined as earnings per share defined by IFRS excluding
the impact of non-recurring operational expenses relating to offering costs.
SCALE
- Cartrack subscribers up 17% to 2,136,610 at August 31, 2024 (Q2 2024: 1,832,708)
- Net Cartrack subscriber additions up 18% to 89,168 (Q2 2024: 75,256)
GROWTH
- Subscription revenue increased 15% to ZAR986 million (Q2 2024: ZAR860 million)
- Subscription revenue increased 22% to USD 2 55 million (a non-IFRS measure).
2 For convenience purposes only, amounts in South African rand as at August 31, 2024 have been translated to U.S.
dollars using an exchange rate of ZAR 17.7910 to U.S.$1.00 (August 31, 2023: ZAR 18.9061), as set forth in the H.10
statistical release of the Board of Governors of the Federal Reserve System.
Operating Profit and Earnings Per Share
Karooooo's operating profit grew by 22% to ZAR302 million (Q2 2024: ZAR247 million) and earnings per
share by 22% to ZAR6.85 (Q2 2024: ZAR5.61).
After adjusting Karooooo's earnings per share for the secondary public offering in July 2024, Adjusted EPS1
(a non-IFRS measure) grew by 31% to ZAR7.35 (Q2 2024: ZAR5.61).
Cartrack delivered record operating profit of ZAR293 million, up 16% (Q2 2024: ZAR252 million). The gross
profit margin expanded to 74% (Q2 2024: 71%) and the operating profit margin remains at 29% (Q2 2024:
29%).
Karooooo Logistics operating profit grew by 20% to ZAR9 million (Q2 2024: ZAR8 million) as it continues
to scale. The gross profit margin was 31% (Q2 2024: 33%) with a healthy operating profit margin of 9% (Q2
2024: 11%).
Half-Year 2025 Highlights:
(Comparisons are relative to HY 2024, unless otherwise stated.)
SCALE
- 2,136,610 Cartrack subscribers at August 31, 2024, up by 17% (HY 2024: 1,832,708)
- Net Cartrack subscriber additions of 165 078, up by 43% (HY 2024: 115,631)
GROWTH
- Subscription revenue increased 15% to ZAR1,950 million (HY 2024: ZAR1,697 million)
- Subscription revenue increased 22% to USD 2 110 million (a non-IFRS measure).
2 For convenience purposes only, amounts in South African rand as at August 31, 2024 have been translated to U.S.
dollars using an exchange rate of ZAR 17.7910 to U.S.$1.00 (August 31, 2023: ZAR 18.9061), as set forth in the H.10
statistical release of the Board of Governors of the Federal Reserve System.
Operating Profit and Earnings per share
Karooooo grew operating profit by 28% to a record of ZAR602 million (HY 2024: ZAR472 million) and
earnings per share by 31% to ZAR14.02 (HY 2024: ZAR10.70).
After adjusting Karooooo's earnings per share for the secondary public offering in July 2024, Adjusted
EPS1(a non-IFRS measure) grew by 36% to ZAR14.52 (HY 2024: ZAR10.70).
Cartrack grew operating profit by 20% to a record of ZAR580 million (HY 2024: ZAR484 million).
Karooooo Logistics grew operating profit by 78% to a record of ZAR22 million (HY 2024: ZAR12 million).
Commentary from Zak Calisto, CEO and Founder:
"We delivered another strong quarter of profitable growth in the second quarter. Importantly, we recently
completed the move to our newly built central office in South Africa, which positions us to support higher
organic growth in the region. In addition, we started to increase our investment in sales and marketing in
Southeast Asia to capitalize on the compelling growth opportunity for the group in the region. Despite
1 Adjusted earnings per share, (a non-IFRS measure), is defined as earnings per share defined by IFRS excluding
the impact of non-recurring operational expenses relating to offering costs.
increased capital allocation to growth in Southeast Asia, we remain committed to a disciplined approach to
growth as evidenced by our continued strong unit economics."
Outlook
We believe Karooooo is strongly positioned for growth. We operate in a growing and largely
underpenetrated market, with strong demand from customers needing to be competitive and digitalise their
operations.
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 continuous investment in our
AI products, platform and customer experience to generate robust results in the future.
We remain confident that our track record of success, specifically our ability to generate healthy cash flows,
is sustainable.
Our mission is to be a leading Operations Cloud service provider.
Actual results may differ materially from Karooooo's outlook due to various factors, including those
described under "Forward-Looking Statements" below and described under "Risk Factors" in our latest
Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission.
With Cartrack's revenue making up the majority of group revenue, the guidance below relates primarily to
Cartrack.
Given our results, we revised our guidance for FY 2025 to:
- Cartrack's number of subscribers expected to be between 2,300,000 and 2,400,000, previously
2,200,000 and 2,400,000
- Cartrack's subscription revenue expected to be between ZAR3,950 million and ZAR4,150 million,
previously ZAR3,900 million and ZAR4,150 million
- Cartrack's operating profit margin expected to be between 27% and 31%
- Karooooo's Adjusted Earnings Per Share1 expected to be between ZAR27.50 and ZAR31.00
Short-form Announcement
This short-form announcement is the responsibility of the directors of Karooooo. This short-form
announcement is only a summary of the information in the full announcement (defined below) and does
not contain full or complete details. Any investment decision by investors and/or shareholders should be
based on consideration of, inter alia, the full announcement.
The full announcement ("full announcement") includes the contents of the Report on Form 6-K as
furnished to the SEC dated 15 October 2024, being the press release incorporating the unaudited
condensed consolidated and combined financial statements of Karooooo for the second quarter and half-
year ended 31 August 2024.
The full announcement has been released on SENS today, 15 October 2024 and is available for viewing
on the Company's website (www.karooooo.com) and at the following address:
1 Adjusted earnings per share, (a non-IFRS measure), is defined as earnings per share defined by IFRS excluding
the impact of non-recurring operational expenses relating to offering costs.
https://senspdf.jse.co.za/documents/2024/jse/isse/KROE/HY2025.pdf
The full announcement is available for inspection at the offices of the Company (17 Kallang Junction
#0605/06 Singapore 339274) at no charge during normal office hours on business days from Tuesday, 15
October 2024 to Tuesday, 22 October 2024. Copies of the full announcement may also be requested
from the sponsor by emailing dg.mlsa_corporate_broking@bankofamerica.com.
Webinar Information
Karooooo management will host a Zoom webinar on Tuesday, October 15, 2024 at 08:00 a.m. Eastern
Time (02:00 p.m. South African time; 08:00 p.m. Singaporean time).
Investors are invited to join the Zoom at: https://us02web.zoom.us/j/82027776209
Webinar ID: 820 2777 6209
Telephone:
- US (New York) Toll-free: +1 646 558 8656
- South Africa Toll-free: +27 87 551 7702
A replay will be available at www.karooooo.com approximately three hours after the conclusion of the live
event.
About Karooooo
Karooooo is a provider of a leading operational IoT SaaS cloud that maximizes the value of operations
and workflow data by providing insightful real-time data analytics to thousands of enterprise customers by
digitally transforming their operations. The Cartrack (wholly owned by Karooooo) SaaS platform provides
customers with differentiated insights and data analytics to optimize their business operations. Cartrack
assists customers to sustainably improve workflows, manage field workers, increase efficiency, decrease
costs, improve safety, monitor environmental impact, assist with regulatory compliance and manage risk.
Currently there are over 2,175,000 connected vehicles and equipment on the Cartrack cloud.
For more information, visit www.karooooo.com.
Investor Relations Contact IR@karooooo.com
Media Contact media@karooooo.com
Johannesburg
Tuesday, 15 October 2024
Sponsor
Merrill Lynch South Africa Proprietary Limited
t/a BofA Securities
Date: 15-10-2024 12:43:00
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