Midrand: AfricUpdate – News Desk
Karooooo, the owner of Cartrack, has seen another large jump in profit and customer numbers, with the group looking for further expansion. In the group’s interim results for the half year ended 31 August 2025, the group’s revenue increased by 20% to R2.6 billion, and subscription revenue increased 19% to R2.3 billion. Cartrack’s total revenue increased 19% to R2.36 billion, primarily due to its subscription-based business model. Cartrack’s subscription revenue jumped 19% to a record of R2.3 billion in HY 2026, while subscription revenue represented 98% of Cartrack’s total revenue.
Cartrack subscribers increased 15% to over 2.4 million customers. Karooooo Logistics’s revenue jumped by 29% to R261 million. Profit for the period was R517 million, up 17.2% from R441 million the year prior. The group’s operating expenses increased 17% to R1 billion, with Cartrack seeing investments in infrastructure and headcount to support territorial expansion and distribution growth.
Cartrack’s sales and marketing expenses increased 32% to R390 million over the year, but the group said that this was able to increase its customer acquisition. Cartrack’s general and administration expenses increased 12% to R472 million, which reflects its ability to manage costs while building infrastructure prudently. However, it expects these costs to gradually rise continuously to support and drive growth. Cartrack also provided for expected credit losses of R49 million. Regarding the group’s financials, its operating profit increased 18% to R708 million.
Earnings per share increased 17% to R16.43. When considering the costs of a secondary offering, adjusted earnings per share increased 16% to R16.83. The group’s founder, Zak Calisto, offered and sold 1.5 million ordinary shares to the public for $75 million (about R1.3 billion) in June 2025. Before the sale, Calisto owned 65% of Karooooo shares, with another 10% of the company tied to him via a standing agreement, giving him beneficial voting rights. Following the disposal, his direct ownership dropped to around 58%.
With the group’s market capitalisation sitting at $1.74 billion, Calisto’s share is still valued at $1 billion, making him a dollar billionaire just from his stake in Karooooo alone. Looking ahead, the group said it remains firmly positioned for growth, operating in an expanding and largely underpenetrated market fueled by robust customer demand.
“This demand is driven by a heightened focus on digitisation, the need to improve operational efficiency and reduce costs, and increasing attention to safety in physical operations. Our proven and profitable business model, underpinned by a strong balance sheet and healthy cash position, gives us multiple levers for expansion. We believe our continuous investment in AI products, platform and customer experience will generate robust results in the future. We remain confident that our track record of success, specifically our ability to generate healthy cash flows, is sustainable.”
