South African tycoon Zak Calisto’s Karooooo posts impressive $9-million profit in Q1

Singapore-based mobility platform, Karooooo Limited, led by South African businessman Zak Calisto, has reported a resilient financial performance at the end of the first quarter of its 2024 fiscal year.

The company’s profit increased by 3.6 percent, reaching R161.95 million ($9.06 million), compared to R156.34 million ($8.74 million) in the corresponding period of 2023, according to recently published financial results.

The surge in profit can be attributed to a robust 24.4-percent increase in revenue, which rose from R801.44 million ($44.9 million) to R996.8 million ($55.9 million).

The revenue growth was driven by an 18 percent surge in subscription revenue, climbing from R709 million ($39.75 million) to R836 million ($46.9 million).

Calisto, the CEO, and founder of Karooooo, expressed his satisfaction with the results, stating: “These consistent results extend the group’s track record of growth at scale, profitability, and cash generation over more than a decade. Achieved in varying macroeconomic environments, the group’s success is underpinned by an entrepreneurial, innovative, agile, and customer-centric culture.”

Karooooo, which was established by Calisto in 2001 with a focus on stolen car recovery services in South Africa, now manages Cartrack, a wholly-owned subsidiary providing real-time mobility data analytics solutions for intelligent transportation.

Under Calisto’s leadership, the company has become a leading provider of intelligent transportation management and analytics, serving customers in 23 countries across five continents and supporting over 1.7 million users worldwide.

The company’s impressive financial performance has led to the expansion of its total assets from R3.75 billion ($210.1 million) as of February 28, 2023, to R4.15 billion ($232.5 million) as of May 31, 2023. However, its retained earnings decreased from R1.56 billion ($87.3 million) to R1.22 billion ($68.3 million).

With a proven and profitable business model, competitive differentiators, and a strong financial position, Karooooo remains confident in its ability to sustain success and continue generating strong cash flows for the foreseeable future.

Karooooo’s impressive performance in the first quarter of its 2024 fiscal year underscores its growth trajectory and position as a key player in the global intelligent transportation management and analytics industry.