Outlook
- Karooooo sees FY 2027 EPS between ZAR 38.50 and ZAR 40.00, up 18%-23% from FY 2026.
- Company expects Cartrack FY 2027 subscription revenue of ZAR 5,700 mln to ZAR 6,000 mln, up 18%-24%.
- Karooooo expects Cartrack FY 2027 gross profit margin of 70%-72% and operating profit margin of 27%-30%.
Result drivers
- Subscriber growth - Record net Cartrack subscriber additions and an 18% increase in total subscribers drove higher subscription revenue. Cartrack's revenue makes up the majority of group revenue.
- Logistics revenue - Karooooo Logistics delivery-as-a-service revenue rose 46% year over year, contributing to group growth.
- Investment in growth - Increased investment in IoT devices and working capital to support subscriber growth reduced free cash flow.
Quarterly performance
- The US- and South Africa-listed firm's fiscal Q1 subscription revenue rose 19% in ZAR terms and 32% in USD terms.
- The operational intelligence platform's Q1 adjusted EPS increased 11% year over year in ZAR terms.
- Singapore-headquartered company keeps FY 2027 outlook unchanged.
Analyst coverage and valuation
KARO•
