Karooooo Limited has posted R107.92 million ($7.38 million) in profits for the first quarter of its 2022 financial year.
When compared to last year’s figures, the Singapore-based company suffered a 19.2-percent decline in earnings. A higher effective tax rate of 31 percent (compared to 27 percent in 2021), coupled with one-off IPO costs of R10 million, pressured profits to fall to R107.92 million ($7.38 million) by the end of the quarter.
As of press time, 3:45 PM (UTC), July 21, the company’s shares were trading at R554.99 ($37.85) on the Johannesburg Stock Exchange, while its market capitalization was valued at R17.18 billion ($1.171 billion).
Karooooo achieved a revenue growth of 17 percent during the quarter on the back of a 21-percent increase in its total subscriber base, which currently amounts to 1,366,470 subscribers.
Founder and CEO Zak Calisto said that Karooooo’s resilient financial performance in Q1 2022 demonstrates its ability to innovate and provide a differentiated fleet management platform that underscores the company’s ability to build a leading mobility SaaS* platform that maximizes the value of data.
“Our comprehensive fleet management platform and vertically integrated business model differentiates us from competitors, our focus on product development and distribution has led to our continued growth with limited industry or customer concentration risk,” he said.
Karooooo manages the operations of Cartrack, a wholly owned subsidiary that offers real-time mobility data analytics solutions for smart transportation. It provides a comprehensive, cloud-based smart mobility platform for connected vehicles and other assets.
Calisto founded Karooooo in 2001 with an initial focus on stolen vehicle recovery services in South Africa.
Since 2001, the company has strategically grown its business to its present scale as a leading international provider of smart transportation management and analytics, serving customers in 23 countries across five continents and supporting more than 1.375 million subscribers worldwide.
The South African entrepreneur retains more than two-thirds of the company’s equity, or 20,419,294 issued ordinary shares, making him the majority shareholder in the company.
As of press time, Calisto’s 66-percent equity stake in Karooooo was valued at R11.34 billion ($773.27 million).
*Software as a service.