Karooooo’s Cartrack Drives Strong Q2 Earnings Growth
Karooooo Ltd. delivered a robust second-quarter performance, with revenue climbing 21% year-over-year to ZAR1.34 billion, surpassing market expectations. The company's Core Cartrack vehicle tracking service accounted for 90% of total revenue, with subscription revenue growing 20% as subscriber base expanded 15% to 2.46 million users.
While gross margins contracted slightly to 68%, the company maintained healthy profitability with adjusted EPS rising 13% to ZAR8.28. Cartrack's operating margin remained stable at 29%, demonstrating the segment's pricing power despite competitive pressures in the telematics market.
Karooooo Logistics emerged as a growth accelerator, with delivery-as-a-service revenue surging 38% to ZAR139 million. The company's dual-engine strategy—combining stable subscription income from Cartrack with high-growth logistics services—appears to be gaining traction in South Africa's evolving mobility sector.
