Cartrack’s strong customer acquisition and margin expansion drives Karooooo’s EPS up 27%

SINGAPORE--(BUSINESS WIRE)--Karooooo, that owns 100% of Cartrack, a leading provider of insightful real-time data analytics and business intelligence, reported robust results for its fourth quarter ("Q4 2023") ended February 28, 2023. These strong results extend the group’s track record of growth at scale, profitability and cash generation.

Assessing the results, Zak Calisto, CEO and Founder, said:

“Despite Covid reshuffling the world and creating various new macro-economic headwinds, we were still able to maintain our decade-plus track record of strong growth.

Cartrack achieved strong subscription revenue growth, robust margin expansion, record earnings and healthy free cash flow.

As we continue to scale our customer base, our easy-to-use platform is helping small to large enterprise customers in diverse geographical markets and industries bolster their profits and mitigate risk.”

For the full year ("FY 2023"), Karooooo’s total revenue grew 28% to ZAR3,507 million (FY 2022: ZAR2,746 million) and subscription revenue grew 17% to ZAR3,010 million (FY 2022: ZAR2,568 million).

Strong customer acquisition and disciplined capital allocation benefitted earnings per share, up 51% to ZAR4.70 for Q4 2023 (Q4 2022: ZAR3.11) and up 27% to ZAR19.29 for FY 2023 (FY 2022: ZAR15.24).

Free cash flow for FY 2023 rose 44% to a record ZAR547 million (FY 2022: ZAR379 million).

Net cash and cash equivalents at the end of February 2023 were 35% higher at ZAR966 million (Q4 2022: ZAR718 million) after paying a dividend of 60 USD cents per share in September 2022.

Cartrack’s operating profit margin expanded to 30% (FY 2022: 27%).

Based on the record earnings, healthy free cash flow generation and strong and unleveraged balance sheet, Karooooo declared a dividend of 85 USD cents per share (about ZAR 15.64 at the current exchange rate) to be paid on the 3^rd of July 2023.

Karooooo's leading Operations Cloud powers the digital transformation of over 105,000 commercial customers, which represents impressive growth from over 88,000 customers a year ago. Karooooo has shown a high rate of successful implementation and 95% commercial customer retention across businesses of varying sizes in diverse geographical markets and industries, including logistics, field-service-maintenance, transport, finance, mining, agriculture, and emergency services.

Full earnings and webinar details at www.karooooo.com