Karooooo Reports Its Fourth Quarter and Full Year 2022 Results

Rhea-AI Summary

Karooooo Limited (KARO) reported a 20% revenue increase for the year ending February 28, 2022, with a 17% growth in subscriber base. The company attributes its success to a resilient operating strategy and strong customer acquisition, achieving over 88,000 commercial customers. Net cash surged to ZAR718 million from ZAR76 million in the previous year. A dividend of 60 U.S. cents per share was declared, reflecting its profitable business model. The company continues to focus on innovation and strategic partnerships to drive future growth.

Positive

• Revenue increased by 20% year-over-year.
• Subscriber base grew by 17%, reaching over 88,000 commercial customers.
• Net cash and equivalents rose to ZAR718 million from ZAR76 million.
• Declared a dividend of 60 U.S. cents per share, indicating strong profitability.

Negative

• None.

SINGAPORE--(BUSINESS WIRE)-- Karooooo Limited (“Karooooo”), that owns 100% of Cartrack, 100% of Carzuka and 70.1% of Picup, today reported results for the fourth quarter and full year of its financial year ended February 28, 2022 (“2022”).

“In our first year as a NASDAQ listed company, we are pleased with our resilience and execution, delivering another quarter of strong subscriber growth, contributing to our subscriber base increasing by 17% in 2022 despite the persistent challenging operating environment. We made good inroads in delivering on our core strategic priorities, building for relevance and sustainability. As a technology partner, we continue to improve our platform and enhance our value proposition to our customers, giving them a competitive advantage in the dynamic and challenging environment they operate in.

Total revenue for 2022 is up 20% which equates to a 23% increase on a constant currency basis (a non-IFRS measure). Our decade-plus track record of growth, sustained profitability and a highly cash-generative business model, coupled with consistent innovation and strong customer acquisition, continues. At the end of 2022 we had more than 88,000 commercial customers.

We are excited about what we have built and continue to build. Our evolving end-to-end all-inclusive IoT platform, vertically integrated business model, established infrastructure, expanding distribution network and ability to execute and scale gives me comfort that we can continue scaling our customer base.

Execution on core strategic priorities in 2022 included the expansion of partnerships with Original Equipment Manufacturers which are a springboard for future collaboration, given our shared commitment to continually enhance the distinctive value proposition we offer our customers.

Our disciplined approach to capital allocation allows us to be profitable and highly cash-generative. Plenty of runway exists to remain profitable should we accelerate our revenue growth rate in excess of our average historical growth rate.

Karooooo reported a net cash and cash equivalents balance of ZAR718 million at the end of 2022 (2021: ZAR76 million) after raising ZAR349 million of net proceeds when Karooooo listed on the NASDAQ in April 2021 and after paying ZAR70 million when acquiring Picup in September 2021. Given our profitability, inherently cash-generative business model and our strong balance sheet, the board declared a dividend of 60 U.S. cents per share which shall be payable entirely out of Karooooo’s retained earnings.“ Zak Calisto, CEO and Founder.

Full release and webinar details at https://www.karooooo.com/

View source version on businesswire.com: https://www.businesswire.com/news/home/20220427005910/en/

Investor Relations

Phillipe Welthagen

IR@karooooo.com



Media

media@karooooo.com

Source: Karooooo Limited

FAQ

What were Karooooo's revenue results for 2022?

Karooooo reported a 20% increase in revenue for the year ending February 28, 2022.

How much did Karooooo's subscriber base grow in 2022?

Karooooo's subscriber base grew by 17% in 2022.

What is the current cash balance for Karooooo?

Karooooo had a net cash balance of ZAR718 million at the end of 2022.

What dividend did Karooooo declare?

Karooooo declared a dividend of 60 U.S. cents per share.

How many commercial customers does Karooooo have?

Karooooo has over 88,000 commercial customers.