Karooooo reports record earnings & cash generation for FY23 Q1

SINGAPORE--(BUSINESS WIRE)--Karooooo, which owns 100% of Cartrack, 100% of Carzuka and 70.1% of Karooooo Logistics (Picup, re-named as Karooooo Logistics, given the consolidation of platforms), is a leading provider of insightful real-time data analytics and business intelligence. Karooooo maximizes the value of data through its IoT SaaS cloud, with an offering that extends beyond connected vehicles and equipment to assisting more than 90,000 diverse enterprise customers (Q1 2022: 76,000+) to digitally transform their operations.

Assessing the results for the first quarter ended May 31, 2022 (“Q1 2023”), Zak Calisto, CEO and Founder, said: “With record earnings and cash generation from operating activities, this is a pleasingly solid start to our 2023 financial year (“2023”). It confirms our robust business model and extends our decade-plus track record of execution and ability to scale operations in variable market conditions.

Despite global economic headwinds, specifically higher energy and raw material prices and electronic component shortages, we maintained the momentum in our top-line growth. Total revenue was up 28% to ZAR801 million (Q1 2022: ZAR626 million). Revenue growth coupled with ongoing operating efficiencies resulted in profit for the period increasing 44% to ZAR156 million (Q1 2022: ZAR108 million) and earnings per share 42% to ZAR4.96 million (Q1 2022: ZAR3.49). Strong free cash flow generation bolstered our robust cash position, notwithstanding our investment in future growth. A net cash and cash equivalents balance of ZAR854 million at the end of Q1 2023 (Q4 2022: ZAR718 million; Q1 2022: ZAR 554 million) supported an interim dividend of 60 U.S. cents per ordinary share, declared on April 27, 2022.

The traction in our Southeast Asia operations was particularly encouraging. As COVID-19 disruptions eased, we accelerated the investment in our operations in this region. Among other highlights, Coca-Cola selected Cartrack as their technology partner in the Philippines to strengthen their operations.

Looking ahead, we believe we have multiple levers for expansion and are well positioned to capitalize on a large and growing market opportunity. Our ability to create compelling value from the billions of data points we collect continues to improve, differentiating our offering to enterprise customers. Underpinned by our evolving end-to-end all-inclusive IoT platform, vertically integrated business model, established infrastructure, expanding distribution network and ability to execute, we believe that we have proved that we can scale our customer base in varying market conditions.”

Full earnings release and webinar details at https://www.karooooo.com/