Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 140

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 8
Chunk 140
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Item 8. FINANCIAL INFORMATION

  CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION  

See Item 18. “ FINANCIAL STATEMENTS”

LEGAL PROCEEDINGS

To our knowledge, we are not
currently a party to any legal proceeding that would have a material adverse effect on our financial condition, results of operations,
or liquidity, nor are we aware of any pending legal proceedings, which may have a material adverse effect on our financial condition,
results of operations, or liquidity. From time to time in the future, we may become involved in legal proceedings arising in the ordinary
course of our business. Litigation is subject to many uncertainties, the outcome of individual litigated matters is not predictable with
assurance, and it is reasonably possible that some of these matters may be decided unfavorably to us.

DIVIDENDS AND DIVIDEND POLICY

Dividends are declared at the
discretion of our board of directors and we cannot assure you that we will pay any dividends to holders of our ordinary shares, or as
to the amount of any such dividends if our board of directors determines to do so.

The board recognizes the importance
to the Group of investment in achieving growth at scale and endeavors to avoid swings in dividend profile. The payment and timing of dividends
in cash or other distributions (such as a return of capital to shareholders through share buy-backs, for example) are determined by the
board after considering factors that include: earnings and Free Cash Flow; current and anticipated capital requirements; economic conditions;
contractual, legal, tax and regulatory restrictions (including covenants contained in any financing agreements), the ability of Group
subsidiaries to distribute funds to Karooooo and such other factors the board may deem relevant. Karooooo aims to reinvest retained earnings
to the extent that it aligns with the Group’s required return on incrementally reinvested capital, return on equity, and short-
to medium-term growth strategy. See “ Risk Factors - Although Karooooo has paid dividends in the past, our ability to pay dividends
in the future depends on many factors and we cannot guarantee you that we will continue to pay dividends in the future.”

The board may, by ordinary resolution,
declare dividends at a general meeting of its shareholders, but no dividend shall be payable except out of our profits, and the amount
of any such dividend shall not exceed the amount recommended by the board of directors. Subject to Karooooo’s constitution and in
accordance with