Karooooo Limited, a mobility platform led by South African businessman Zak Calisto, is on track to deliver an improved financial performance at the end of its current fiscal period (2022-2023).
The bump in performance comes after the company recorded a slight decrease in profit last year due to a $2.25-million non-recurring operational cost expensed during its listing process.
According to figures contained in its recently published first quarter results, the Singapore-based global mobility SaaS platform saw its profit rise by 44 percent to R156 million ($9.37 million), compared to the R108 million ($6.48 million) that it posted for the first quarter of 2022.
The double-digit increase in earnings can be attributed to higher revenue generated in the period, as the company’s total subscriber base surpassed 1.5 million, up from less than 1.4 million a year ago.
While providing more information about the group’s financial performance, the management stated that earnings for the period were boosted by an increase in subscribers’ connected vehicles and equipment on its platform. The increase is the result of rising demand from small, medium and large enterprises seeking to digitally transform their businesses to remain competitive.
The management added that revenue growth combined with continuing operational efficiencies resulted in a 44-percent increase in profit for the period to R156 million ($9.37 million) versus R108 million ($6.48 million) last year.
“With record earnings and cash generation from operating activities, this is a pleasingly solid start to our 2023 financial year,” Calisto, CEO and founder of Karooooo, said. “It validates our solid business model and builds on our 10-year track record of execution and ability to scale operations in volatile market conditions.”
He added that, the group maintained its top-line growth momentum, with revenue increasing by 28 percent to R801 million ($48.1 million) from R626 million ($37.61 million) in the first quarter of 2022 despite global economic headwinds such as higher energy and raw material prices and electronic component shortages.
If maintained throughout its 2023 fiscal period, Karooooo’s impressive financial performance in the first quarter will result in Calisto receiving a higher dividend than the $11.68 million that he is set to receive on Sept. 12 as part of the $17.7 million in dividends payable to shareholders.
Calisto, who founded Karooooo in 2001, owns a majority stake in the global provider of smart transportation management and analytics.
According to Billionaires.Africa, his 66-percent stake in the platform, which also operates Cartrack, has dropped by $363 million year-to-date to $470 million as of July 23.
