News about KARO

Karooooo (KARO) reported record quarterly operating profit of ZAR 422 million, up 19%, and subscription revenue grew 20% to ZAR 1,418 million. Total revenue reached ZAR 1,640 million, up 22%, with a record 94,516 net subscriber additions for the second quarter and total subscribers at 2,899,210. Subscription revenue grew 25% in South Africa and 25% in Asia on a constant currency basis, while logistics revenue rose 36% to ZAR 189 million on demand for quick-commerce delivery. Management maintained FY 2027 subscription revenue guidance of ZAR 5,700 million to ZAR 6,000 million, and invested ZAR 966 million in inventory as a buffer against rising RAM and memory prices, which weighed on free cash flow of ZAR 41 million for the quarter.