Karooooo continues to hit new highs, posting record adjusted quarterly earnings per share and its core business, Cartrack, now has over 2.2 million subscribers. 

This was revealed in the company’s third-quarter results released on 15 January 2025, where the company continued its positive momentum. 

Karooooo owns Cartrack as well as Karooooo Logistics and is listed on both the Nasdaq and Johannesburg Stock Exchange. 

Founded by Zak Calisto as Cartrack in 2001 as a joint venture with Netstar, the company has gone from strength to strength in recent years. 

The company now boasts 2.22 million subscribers for its Cartrack service, which offers solutions for transportation-related industries that use fleet management, asset recovery, and insurance.

This is up 17% year-on-year and boosted Cartrack’s subscription revenue to over R1 billion for the quarter compared to R900 million a year earlier. 

Karooooo Logistics operates as a business-to-business (B2B) delivery-as-a-service company and saw its revenue grow by 20% year-on-year to R109 million. 

Due to the rand’s strength during the third quarter of the year, Karooooo’s growth was even stronger in US dollar terms. 

Cartrack, in dollar terms, saw its revenue grow 19% to $57 million and Karooooo Logistic’s grew by 26% to $6 million. 

This translated into strong operating profit growth of 18% to R325 million and earnings per share growth of 21% to R7.68 – a new quarterly record. 

Cartrack reported a growth of 7% in operating profit to R316 million. The gross profit margin improved to 74% while maintaining a healthy operating profit margin of 30%. 

Karooooo Logistics’s operating profit increased 24% to R9 million as it continues to scale. The gross profit margin was 32%, with a healthy operating profit margin of 8%.

“We delivered another robust quarter of customer acquisition while we continue to expand our distribution capabilities,” CEO Calisto said.  

Major changes occurred in the past quarter, with the company moving to its newly built central office in South Africa. 

“Our investment in Europe over the last few quarters is starting to yield exciting results,” Calisto said. 

However, its main growth driver remains Southeast Asia’, where the company’s subscription revenue grew by 26% on a constant currency basis and Calisto said it remains biggest medium to long-term opportunity. 

Karooooo said it is poised for strong growth, witht he company operating in a growing and underpenetrated market. 
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Originally published on Daily Investor