Q4 2024 Karooooo Ltd Earnings Call Transcript
Key Points
- Karooooo Ltd (JSE:KRO) achieved record subscription revenue and earnings, with subscription revenue up 18% to ZAR935 million for Q4 FY24.
- The company ended the financial year with over 1,972,000 subscribers and an operating profit margin of 30%.
- Karooooo Ltd (JSE:KRO) maintains a high commercial customer retention rate of 95% across various industries.
- The company has a strong cash position, with net cash on hand plus cash in bank fixed deposits reaching ZAR922 million.
- Karooooo Ltd (JSE:KRO) continues to invest in AI capabilities, leading to significant improvements in operational efficiency and safety for customers.
- Carzuka's operations are being integrated into Cartrack, leading to the discontinuation of Carzuka as a stand-alone segment.
- The company faces strict SEC rules limiting the ability to buy back shares on the open market, resulting in only 50,000 shares purchased this quarter.
- Karooooo Ltd (JSE:KRO) has seen challenging trading conditions in South Africa, impacting subscriber growth.
- The transport industry in South Africa is in disarray, affecting long-haul companies' growth.
- The company has a high upfront cost of acquiring a subscriber, with an average cost of ZAR2,281 per subscriber.
Hello and welcome to Karoooooâs financial year 2024 Q4 and full-year earnings call. On behalf of Karooooo, we would like to thank you for joining us today. Iâm Carmen, the Groupâs Chief Strategy and Marketing Officer, and together with Hoeshin, our Group Chief Financial Officer, we'll be taking you through our key business updates and robust financial performance.
All investors are advised to read through the disclaimer. We will be reviewing all three of Karooooo's business units in today's webinar, namely: Cartrack, Carzuka, and Karooooo Logistics. Please note this is the last earnings call in which we will report on Carzuka as a stand-alone segment as its remaining operations are integrated in supporting the Cartrack operations.
Karooooo remains committed to our mission of being the leading operations cloud. Our focus is to simplify the lives of operators and maximize the scale and efficiency of their operation. Our innovative platform goes far beyond connected vehicles and equipment to centralize and unify an entire
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