Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 87

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 87
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 growth, strong profitability, robust cash generation, and a high level of capital efficiency. For the financial year
ended February 28, 2025, we increased our subscribers to 2,302,236 (FY 2024: 1,971,532). For the financial year ended February 28, 2025,
we generated subscription revenues of ZAR 4,068.2 million compared to subscription revenues of ZAR 3,535.8 million for the financial year
ended February 29, 2024, reflecting year-over-year growth of 15%.

Karooooo’s profit for the year was ZAR 937.1 million and ZAR
754.2 million, for the financial years ended February 28, 2025 and February 29, 2024, respectively, reflecting a year-over-year increase
of 24%. This result includes Carzuka’s operating losses of ZAR 52.9 million in FY 2024. Effective from the first quarter of FY 2025,
Carzuka has been fully integrated to support Cartrack operations, with the final on-hand vehicle sold off in Q1 2025.

Karooooo’s Adjusted EBITDA
(a non-IFRS measure) for the year was ZAR 1,973.5 million and ZAR 1,690.6 million for the financial year ended February 28, 2025 and February
29, 2024, respectively, reflecting year-over-year growth of 17%.

Finally, we believe strong net cash generated
from operating activities is an important factor in supporting our robust business model and indicates our ability to provide the capital
necessary to invest in subscriber growth, territorial expansion and Karooooo Logistics. For the financial years ended February 28, 2025
and February 29, 2024, respectively, Karooooo generated net cash from operating activities of ZAR 1,933.3 million and ZAR 955.0 million,
reflecting a year-over-year increase of 102%. As at February 29, 2024, Karooooo placed ZAR 485.7 million of its cash from operating activities
in bank fixed deposits which matured in June and July 2024 that were classified as other receivables.

These
results were achieved notwithstanding the Group’s strategic investment in product innovation, geographical expansion, brand building
and customer acquisition for long-term, sustainable growth.

The following table sets forth the segment revenue,