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IOL News
7 days ago
- Business
- IOL News
Karooooo's Cartrack subscription revenue surges as interim dividend rises
Karooooo CEO Zak Calisto Image: Simphiwe Mbokazi/ANA Karooooo reported another set of strong results for the first quarter to May 31 with the number of Cartrack subscribers increasing by 17% while the interim dividend was up by more than 15%. On the JSE Wednesday morning, Karooooo's share price shot up by 5.73% to R920, following the announcement of the results. The share price is up by over 57% over 12 months. The interim dividend of $1.25 per ordinary share was declared versus $1.08 at the same time last year, which was paid due to the strong cash position and good earnings growth, CEO Zak Calisto said in an interview. 'We are pleased to report a strong start to the 2026 financial year highlighted by accelerating Cartrack subscription revenue growth across all regions,' he said. In June, Calisto sold 8% of his shares, but he remains in control with a 58% shareholding and has no intention to change control, he said. 'Every investor presentation I attend, they ask me about liquidity of the shares,' he said. 'We are realizing the benefits of our extensive footprint, and we believe that we remain well positioned to build our customer base,' he added. He said they remained optimistic about further healthy organic growth in all geographies. Southeast Asia presented the largest growth opportunity over the medium-to-long term and was their fastest growing region. Cartrack subscription revenue growth in Southeast Asia accelerated to 30% in the first quarter. Their second fastest growing region was Europe and third fastest South Africa. In South Africa, 'things have picked up, there is good momentum,' and the new head office in Johannesburg was enabling the group to attract good staff. Calisto added the consumer environment had improved and he was optimistic about economic prospects in the country. Karooooo's operating expenses increased 16% to R523m. Cartrack accounted for R497m (Q1 2025: R428m) in operating expenses, including investments in infrastructure and headcount to support territorial expansion and distribution growth. Karooooo Logistics accounted for R26m (R22m) of total operating expenses as investment to scale Karooooo Logistics continued. 'In the 2026 financial year, we aim to accelerate Cartrack subscription revenue growth by further expanding our distribution footprint in existing markets, driving broader platform adoption, and capitalizing on growing demand for video solutions,' said Calisto. Net Cartrack subscriber additions increased 11% to 84 013. Karooooo's subscription revenue increased 18.4% to R1.14bn. Cartrack's subscription revenue increased 18.5% to R1.14bn. Cartrack's SaaS (software-as-a- service) annualized recurring revenue (ARR) increased 18.3% to R4.57bn. Karooooo Logistics's B2B delivery-as-a-service (DaaS) revenue increased 19.8% to R121m. Karooooo's operating profit increased 17% to R352m. Cartrack's operating profit increased 19% to R342m. Karooooo's adjusted earnings per share increased 19% to R8.55. Calisto said that their proven track record of disciplined execution, sustained growth at scale, and highly profitable business model is supported by a solid balance sheet and a healthy cash position. 'We believe our investments in AI, platform innovation and customer experience will drive durable growth and robust results,' he said. Their guidance for the 2026 financial year of earning per share between R32.50 and R35.50, and on other financial metrics, remained unchanged. Karooooo reported cash and its equivalents at R1.1bn at May 31, 2025, up from R838m at February 28, 2025. There were also overdraft facilities of R300m available. BUSINESS REPORT
Yahoo
19-05-2025
- Business
- Yahoo
Rising feed costs and falling poultry prices hit Astral Foods' first-half earnings
Astral Foods has posted a decline in first-half profits as lower poultry prices and higher feed costs weighed on earnings. Despite reporting growth in revenue and volumes, the South African group said it had to subsidise poultry prices during the period to remain competitive. For the six months ended 31 March 2025, revenue rose 3.5% to R10.7bn ($593.5m), driven by increased volumes and higher selling prices in the group's feed division. However, operating profit fell by 50.7% to R271m, primarily due to margin pressure in the poultry business. Revenue from Astral Foods' poultry division inched up 1.5% to R8.8bn but the unit swung to a R26m operating loss, compared with a R284m profit a year earlier. The group attributed the downturn to a 3.1% year-on-year decline in poultry selling prices, alongside rising feed input costs and higher operating expenses. According to Gary Arnold, Astral Foods' CEO, the company 'subsidised the cost of producing chicken, as higher feed and other inflationary costs could not be passed on in selling prices due to a very competitive poultry market landscape'. In March, the company also suffered a cybersecurity breach, resulting in unauthorised access to parts of its network. Although Astral Foods said it responded 'swiftly,' the poultry division experienced around two days of downtime, disrupting processing and deliveries and leading to financial losses of around R20m. Broiler margins were described as 'extremely thin,' declining to -1.1% from 2.4% in the first half of fiscal 2024. However, broiler sales volumes rose by 4.4% to approximately 5.6 million birds per week. Looking ahead, Astral Foods warned of several challenges, including the ongoing threat of avian influenza and limited progress in approving vaccinations for breeding stock. The broader economic environment also presents headwinds, Astral Foods said. Weakening growth, reduced infrastructure investment and sluggish job creation in South Africa are expected to dampen consumer demand. Rising unemployment is further straining household spending, particularly on poultry products, the group added. On the global front, Astral Foods added uncertainties surrounding South Africa's trade benefits under the African Growth and Opportunity Act (AGOA) could disrupt export opportunities. "Rising feed costs and falling poultry prices hit Astral Foods' first-half earnings " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
