Karooooo Limited, a Singapore-based mobility platform led by South African businessman Zak Calisto, declared a $33.4 million dividend after strong financial success in 2023. However, the company’s sales during the first quarter of the fiscal year 2025 fell short of expert projections, totaling $57.8 million.
Despite the revenue shortfall, Karooooo, the owner of Cartrack Holdings, reported a revenue rise of 10.03 percent, from R996.8 million ($55.9 million) in Q1 2024 to R1.06 billion ($57.80 million) in Q1 2025.
The revenue gain was led by a strong 15% increase in subscription revenue, which reached R964 million ($52.54 million), up from R836 million ($45.56 million) in the same period last year. Operating profit increased by 34% to R300 million ($16.35 million), with the operating profit margin rising to 29%.
Zak Calisto, Karooooo’s CEO and founder, expressed confidence in the company’s capacity to maintain great customer acquisition and profitable growth. “The group’s robust results, distribution expansion, vertically-integrated cloud platform enhancements, new generation AI-powered telemetry, and the prospect of improved economic conditions in South Africa give us confidence that we can continue to extend our long-standing track record of strong customer acquisition and profitable growth at scale,” he told reporters.
Cartrack, Karooooo’s core telematics and fleet management service, witnessed a significant 17 percent gain in members, climbing from 1.76 million last year to 2.05 million by May 31, 2024. This demonstrates excellent consumer acquisition momentum.
Karooooo’s strategic capital deployment contributed to its great growth, profitability, and cash production, with net cash and cash equivalents of R950 million ($51.91 million) as of May 31, 2024. Investments in telematic devices and a new central office in South Africa resulted in a R94 million ($5.14 million) increase in property, plant, and equipment.
The firm declared an interim dividend of $1.08 per ordinary share, totaling R609.59 million ($33.35 million). The dividend will be paid to JSE stockholders on August 12, 2024, and Nasdaq shares on August 14, 2024, with an August 8, 2024 record date.
Under Zak Calisto’s leadership Karooooo, headquartered in Singapore, has emerged as a global leader, boasting a network of over 1,950,000 linked vehicles and equipment. The company helps thousands of enterprise customers with their digital transformation activities, serving over 1.7 million users in 23 countries across five continents.
Karooooo’s Q1 2025 results show significant subscriber growth and strong financial performance. Despite decreasing revenue, the company announced a $33.4 million dividend, indicating its belief in long-term growth and dedication to shareholders. Karooooo is well-positioned to capitalize on emerging telematics and fleet management prospects as it continues to innovate and expand.
