Karooooo Limited announced robust financial results for the second quarter of fiscal year 2025, which concluded on August 31, 2024. The company reported a 15% year-over-year increase in subscription revenue, reaching ZAR986 million, alongside a 22% rise in operating profit to ZAR302 million. Adjusted earnings per share (EPS) saw a significant 31% increase, reaching ZAR7.35.
The Cartrack segment, wholly owned by Karooooo, was a primary driver of this performance, with its subscription revenue growing 15% to a record ZAR983 million. Cartrack also added 89,168 net subscribers during the quarter, bringing its total subscriber base to 2.14 million, a 17% increase year-over-year. Karooooo Logistics, the delivery-as-a-service segment, also contributed with a 40% revenue increase to ZAR101 million.
Strategically, Karooooo completed the move to its new central office in South Africa in September 2024, enhancing its capacity for organic growth in the region. The company also initiated increased investments in sales and marketing within Southeast Asia to capitalize on growth opportunities. Given these strong results and strategic advancements, Karooooo raised its fiscal year 2025 outlook for subscribers and Cartrack subscription revenue at the midpoint.
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