Karooooo rewards shareholders after strong year
Shareholders of dual-listed software group Karooooo are set to receive hefty rewards, following the group’s financial performance in the 2022 financial year, which saw the group deliver another superb showing.
The company, listed on the Johannesburg Stock Exchange and Nasdaq, today reported its financial results for the year, saying given its profitability, shareholders will receive lucrative cheques for their investments.
In the year, Karooooo, which owns Cartrack, ticked green on key performance metrics, including adding 219 972 net subscribers for 2022, up 23% (2021: 179 485).
“Given our profitability, inherently cash-generative business model and our strong balance sheet, the board declared a dividend of 60 US cents (R9.52) per share, which shall be payable entirely out of Karooooo’s retained earnings,” says Zak Calisto, CEO and founder.
After paying this declared dividend, the group says it has sufficient cash and cash equivalents to invest for accelerated growth in 2023.
Calisto says: “Should additional investment for growth be required in the 2024 financial year, we would consider optimisation of our capital structure by way of utilising our available funding line.”
Overall, he says, the company performed better than expected in the year considering the tough operating environment.
“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.”
Karooooo’s total revenue for 2022 surged 20%, which Calisto says, 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.”
Looking ahead, Karooooo says, it is set for growth as it is operating in a growing and largely underpenetrated market and “with the tailwind of customers seeking software solutions to successfully digitalise their businesses and improve their operations”.