The group said on Wednesday adjusted earnings per share for the three months ended November increased 11% to R8.54, while operating profit rose 14% to R369m. Cartrack’s operating profit increased 14% and Karooooo Logistics’s operating profit increased 7%. Calisto said the group saw increased adoption of its Video and Cartrack Tag solutions, which were the main drivers of the acceleration.
“While accelerated growth creates timing differences between upfront growth-related expenses, such as sales and marketing expenses, and their realisation of future revenue, we believe accelerating growth — when executed efficiently and supported by strong unit economics and our healthy balance sheet — is the appropriate strategy to drive long-term shareholder value”. He expects the ongoing investment in distribution capacity to create durable advantages that extend beyond the current financial year. “We believe Karooooo remains strongly positioned for growth.
We operate in an expanding and largely underpenetrated market, fuelled by robust and sustained customer demand,” he said. The group plans to cement its leadership position in South Africa by selling two new telemetry devices, Video and Cartrack Tag, to its existing customers. With Cartrack’s revenue making up the majority of group revenue, Karoooo has revised its 2026 guidance and expects Cartrack’s subscription revenue to be between R4.785bn and R4.9bn, which implies subscription revenue growth between 18% and 21%. Its previous outlook had been for subscription revenue of R4.7bn to R4.9bn.
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