Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 102

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 102
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ooooo’s cost of revenue
decreased ZAR 122.0 million, or 10%, for the financial year ended February 28, 2025 compared to financial year ended February 29, 2024.
For the financial year ended February 29, 2024, Carzuka’s cost of revenue were ZAR 272.2 million.

Cartrack’s cost of revenue increased by
ZAR 53.7 million or 5% and Karooooo Logistics’s increased cost of revenue of ZAR 68.3 million or 31% for the financial year ended
February 28, 2025 is in line with the increase in revenue.

Other Income

Other income decreased ZAR 1.5
million, or 12%, for the financial year ended February 28, 2025 compared to the financial year ended February 29, 2024. Other income consists
of the government grants and gain on disposal of property, plant and equipment.

Operating Expenses

Operating expenses increased ZAR
240.9 million, or 15%, for the financial year ended February 28, 2025 compared to the financial year ended February 29, 2024. Cartrack’s
operating expenses increased ZAR 274.8 million, or 18%, for the financial year ended February 28, 2025 as compared to the financial year
ended February 29, 2024 driven primarily by a ZAR 54.9 million increase in marketing expenses and a ZAR 160.4 million increase in salary
expenses, given Cartrack’s continued preparation for future growth. Karooooo Logistics’s operating expenses increased by 30%
to ZAR 95.3 million incurred for the financial year ended February 28, 2025, compared to ZAR 73.4 million for the financial year ended
February 29, 2024 as we continue to invest in brand building and infrastructure to support growth. For the financial year ended February
29, 2024, Carzuka’s operating expenses were ZAR 55.7 million.

The increase in operating expenses is set forth in more
detail below:

Sales and Marketing

                           Year ended February 28/29                                                                                        
                           2025                                        2025                                2024                    Y-o-Y %  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                           (U. S.$                                                                                                          
                           thousands