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Unaudited Second Quarter and Half Year 2022 Results

Unaudited Second Quarter and Half Year 2022 Results

Karooooo Ltd.
(a public company incorporated and registered in the Republic of Singapore)
(Unique Entity Number: 201817157Z)
JSE share code: KRO NASDAQ share code: KARO
ISIN: SGXZ19450089
(“Karooooo”)

Short-form Announcement: Unaudited Second Quarter and Half Year 2022 Results

Karooooo, that owns 100% of Cartrack Holdings Limited (“Cartrack”), issued a press release announcing its
unaudited second quarter and half year results for the 6 months ended 31 August 2021 and included such
press release as an exhibit to its form 6-K (the “Report on Form 6-K”) dated 14 October 2021 furnished to
the United States Securities and Exchange Commission (“SEC”). Investors are referred to the full press
release as published and available on the Karooooo website at www.karooooo.com.


Second Quarter 2022 Highlights:
(All comparisons relative to the Second Quarter 2021)

SCALE

Karooooo’s strong growth momentum in the number of subscribers continues. Despite the disruption in sales
caused by the social unrest experienced in July 2021 in South Africa and the global effects of the pandemic,
our business model drove new customer additions, delivering growth in the total number of subscribers.

    -   1,408,609 subscribers in total as of August 31, 2021, up 20% (Q2 2021: 1,175,173)

    -   Net subscriber additions increased 1% to 42,139 (Q2 2021: 41,626)

GROWTH

    -   Total revenue increased 20% to ZAR659 million (Q2 2021: ZAR551 million)

    -   Total revenue increased 24% on a constant currency basis (a non-IFRS measure)

    -   Subscription revenue increased 16% to ZAR628 million (Q2 2021: ZAR542 million)

    -   Subscription revenue increased 21% on a constant currency basis (a non-IFRS measure)

    -   In ZAR, Annualized Recurring Revenue (“ARR”), a non-IFRS measure, increased 15% to ZAR2,540
        million as at August 2021 (August 2020: ZAR2,213 million)

    -   In US Dollars (“USD”), ARR, a non-IFRS measure, increased 34% to USD175.1 million (August
        2020: USD130.8 million)

        Half-Year 2022 Highlights:
        (All comparisons relative to the Half-Year 2021)

        SCALE:

            -   1,408,609 subscribers in total as of August 31, 2021, up 20% (Q2 2021: 1,175,173)
            -   Net subscriber additions increased 111% to 102,609 (HY 2021: 48,658)

        GROWTH

            -   Total revenue increased 18% to ZAR1,285 million (HY 2021: ZAR1,086 million)
            -   Total revenue increased 23% on a constant currency basis (a non-IFRS measure)
            -   Subscription revenue increased 16% to ZAR1,234 million (HY 2021: ZAR1,068 million)
            -   Subscription revenue increased 20% on a constant currency basis (a non-IFRS measure)

Operating Profit, Profit, Adjusted Profit, Earnings per Share and Adjusted Earnings per Share

The group delivered operating profit of ZAR346 million for the first half year of 2022 (HY 2021: ZAR368
million), 6% lower than the first half of 2021. The group had net subscriber additions of 102,609 during the
first half of 2022, 111% higher than in the first half of 2021, primarily as a result of an increased investment in
sales and marketing expenditure which takes approximately 6 months to translate into customer acquisition.
While the investment into sales and marketing headcount has materialized in part, management expects to
see the benefit thereof, via growth in customer acquisition, by the end of the fourth quarter of 2022.

Profit for the first half of 2022 decreased by 12% to ZAR231 million (HY 2021: ZAR262 million). Excluding
the impact of once-off IPO costs expensed in the first quarter of 2022 (ZAR10 million), adjusted profit, a non-
IFRS measure, decreased by 8% to ZAR241 million (HY 2021: ZAR262 million) due to the group’s
investment for future growth and the higher effective tax rate of 31% in the first half of 2022 compared to
29% in 2021, primarily attributable to once-off IPO costs that are not tax deductible.

Similarly earnings per share for the first half of 2022 decreased by 13% to ZAR7.37 (HY 2021: ZAR8.43).
Excluding the impact of once-off IPO costs expensed in the first quarter of 2022 (ZAR10 million), adjusted
earnings per share, a non-IFRS measure, decreased by 8% to ZAR7.74 in the first half of 2022 (HY 2021:
ZAR8.43), primarily due to Karooooo’s planned investment for future growth. The decrease in earnings per
share and adjusted earnings per share, a non-IFRS measure, was further impacted by the increase in
Karooooo’s weighted average number of ordinary shares in issue for the first half of 2022, at 28.1 million
shares (HY 2021: 20.3 million) as a result of Karooooo’s take-over of Cartrack Holdings and the capital raise
when Karooooo listed on the NASDAQ in April 2021.

In June 2021, Cartrack declared ZAR120 million in dividends to Karooooo and incurred ZAR6 million
dividend withholding taxation which negatively impacted earnings per share by ZAR0.19 during the second
quarter of 2022. The dividend paid equated to USD8.3 million, using an exchange rate of ZAR13.69. The
Group’s Capital Allocation Committee has adopted a cash management policy whereby Karooooo’s excess
cash reserves on hand will be held in US Dollars, which will be translated into ZAR for reporting purposes.

Headline earnings per share for the first half of 2022 decreased by 13% to ZAR7.35 (HY 2021: ZAR8.43).
Excluding the impact of once-off IPO costs expensed in the first quarter of 2022 (ZAR10 million), adjusted
headline earnings per share, a non-IFRS measure, decreased by 8% to ZAR7.72 in the first half of 2022 (HY
2021: ZAR8.43), primarily due to Karooooo’s planned investment for future growth. The decrease in headline
earnings per share and adjusted headline earnings per share, a non-IFRS measure, was further impacted by
the increase in Karooooo’s weighted average number of ordinary shares in issue for the first half of 2022, at
28.1 million shares (HY 2021: 20.3 million) as a result of Karooooo’s take-over of Cartrack Holdings and the
capital raise when Karooooo listed on the NASDAQ in April 2021.

The total IPO costs amounted to ZAR85 million of which ZAR36 million has been expensed (ZAR26 million in
the fourth quarter of 2021 and ZAR10 million in the first quarter of 2022) and ZAR49 million has been set-off
against share capital.

Investors are referred to Karoooo’s full press release for the reconciliation of basic and diluted headline and
adjusted earnings per share and for the reconciliation of Karooooo’s basic and diluted earnings per share
and adjusted earnings per share.

Short-form Announcement

This short-form announcement is the responsibility of the directors of Karooooo. This short-form
announcement is only a summary of the information in the full announcement (defined below) and does not
contain full or complete details. Any investment decision by investors and/or shareholders should be based
on consideration of, inter alia, the full announcement.

The full announcement (“full announcement”) includes the contents of the Report on Form 6-K as furnished
to the SEC dated 14 October 2021, being the press release incorporating the unaudited condensed
consolidated and combined financial statements of Karooooo for the second quarter and half year ended 31
August 2021.
The full announcement has been released on SENS today, 15 October 2021 and is available for viewing on
the Company’s website (www.karooooo.com) and at the following address:

https://senspdf.jse.co.za/documents/2021/jse/isse/KROE/HY2022.pdf

The full announcement is available for inspection at the offices of the Company (10-Anson Road #12-14,
International Plaza, Singapore, 079903) at no charge during normal office hours on business days from
Thursday, 14 October 2021 to Thursday, 21 October 2021. Copies of the full announcement may also be
requested from the sponsor by emailing dg.mlsa_corporate_broking@bankofamerica.com.

Conference Call Information

Karooooo management will host a conference call and audio webcast on Friday, October 15, 2021 at 08:00
a.m. Eastern Time (02:00 p.m. South African time; 08:00 p.m. Singaporean time).

Webcast: Registration is available at https://edge.media-server.com/mmc/p/4i5vcejb. A live and archived
webcast of the conference call will also be available on the Company’s website at www.karooooo.com.

Conference call: Listeners may access the live conference call by dialing the following numbers and are
advised to dial in approximately 10 minutes prior to the start of the call:

United States Toll Free: 1 833 239 5575
International: +65 678 012 01
Singapore Toll Free: 800 852 8350
South Africa Toll Free: 0800 014 509
United Kingdom Toll Free: 0800 279 8053

Access Code: 3298232


About Karooooo Ltd.
Karooooo, headquartered in Singapore, is a leading global provider of a mobility SaaS platform that
maximizes the value of automotive and workflow data by providing real-time data analytics solutions for
smart transportation to over 1.4 million connected vehicles. With more than 76,000 commercial customers
using the Cartrack (wholly owned by Karooooo) SaaS platform, it is management’s view that Karooooo is the
largest SaaS provider to enterprises in South Africa and it also services thousands of enterprise customers
abroad. The Cartrack platform provides customers with differentiated insights and data analytics to optimize
their business and workforce, increase efficiency, decrease costs, improve safety, monitor environmental
impact, assist with regulatory compliance and manage risk. For more information, visit www.karooooo.com

Johannesburg
Friday, 15 October 2021


Sponsor
Merrill Lynch South Africa Proprietary Limited
t/a BofA Securities

Date: 15-10-2021 07:15:00
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Attachments

SENS_20211015_S452520.pdf
S452520_HY2022.pdf