Karooooo has delivered higher earnings at the halfway stage of its financial year and has reaffirmed its 2026 financial year outlook.
The group, which owns 100% of Cartrack and 74.8% of Karooooo Logistics, reported adjusted earnings per share (EPS) of R8.28 for the second quarter compared with R7.35 a year ago.
After taking into account the costs of the secondary offering, adjusted EPS for the six months ended August were up 16% to R16.83.
In June, CEO Zak Calisto sold 1.5-million shares in the technology group he founded in a secondary public offering. The shares were sold at $50 apiece for total gross proceeds of about $75m.
For the six months, Cartrack subscribers increased 15% to 2,456,989 with the addition of 154,753 new subscribers.
Karooooo's subscription revenue increased 19% to R2.32bn
Karooooo’s operating profit increased 18% to R708m. Cartrack’s operating profit increased by 18% to R686m and its operating profit margin was 29%. Karooooo Logistics’ operating profit decreased 1% to R21m at a margin of 8%.
Calisto said the group continued to demonstrate its ability to accelerate subscription revenue growth at scale and deliver strong earnings.
“We believe that our strong unit economics coupled with a clean balance sheet positions us favourably to continue to scale,” he said.
“We believe Karooooo remains strongly positioned for growth. We operate in an expanding and largely underpenetrated market, fueled by robust and sustained customer demand. This demand is driven by a heightened focus on digitalisation, the need to improve operational efficiency and reduce costs, and increasing attention to safety in physical operations,” he added.
The group has accelerated Cartrack subscription revenue growth by further expanding its distribution footprint in existing markets, driving broader platform adoption, and capitalising on growing demand for video solutions.
“We remain confident that our track record of success, specifically our ability to generate healthy cash flows, is sustainable,” he said.
The group said guidance for financial year 2026 remained unchanged, with Cartrack contributing the majority of group revenue.
Cartrack’s subscription revenue was expected to be between R4.7bn and R4.9bn, which implied subscription revenue growth between 16% and 21%. Karooooo’s adjusted EPS were expected to be R32.50-R35.50.
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