Karooooo Increases Earnings by 31% Driven by Strong Subscription Revenue Growth and Higher Gross Margins

October 15, 2024 at 06:37 AM EDT

Karooooo Limited (“Karooooo”) reported strong results and a positive outlook in the second quarter (“Q2 2025”) and Half-Year (“HY 2025”) ended August 31, 2024. Karooooo owns 100% of Cartrack and 74.8% of Karooooo Logistics, (collectively, “the group”).

Financial and operational highlights include:

Karooooo subscribers increased 17% Y/Y to 2.14 million
Cartrack net subscriber additions increased 18% Y/Y to a record 89,168
Cartrack gross margin improved approximately 300bps Y/Y to 74%
Karooooo adjusted earnings per share increased 31% Y/Y to a record ZAR7.35
Raising FY25 outlook for subscribers and Cartrack subscription revenue at midpoint

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 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.”

Karooooo grew subscription revenue by 15% to ZAR986 million (Q2 2024: ZAR860 million) in Q2 2025, and operating profit grew by 22% to ZAR302 million (Q2 2024: ZAR247 million).

Cartrack grew subscription revenue by 15% to a record ZAR983 million in Q2 2025 (Q2 2024: ZAR858 million). Subscription revenue equated to 98% of total revenue. Cartrack achieved 89,168 net subscriber additions in the quarter, building on its solid track record of growing at scale.

Karooooo Logistics grew revenue by 40% to ZAR101 million (Q2 2024: ZAR72 million). Karooooo Logistics focuses on delivery-as-a-service (“DaaS”) for large enterprise customers wishing to scale and digitalise their e-commerce operations without investing unnecessarily in additional assets by connecting them into an elastic fleet of third-party delivery drivers.

Our proven, robust and consistently profitable business model, underpinned by a strong balance sheet and healthy cash position, positions us to capitalize on a growing and largely underpenetrated market.

For the full earnings, visit: www.karooooo.com