Karooooo Ltd.

10/15/2021 | Press release | Distributed by Public on 10/15/2021 00:37

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) 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 Operating Profit, Profit, Adjusted Profit, Earnings per Share and Adjusted Earnings per Share ISIN: SGXZ19450089 ("Karooooo") 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 Short-form Announcement: Unaudited Second Quarter and Half Year 2022 Results 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. Karooooo, that owns 100% of Cartrack Holdings Limited ("Cartrack"), issued a press release announcing its While the investment into sales and marketing headcount has materialized in part, management expects to unaudited second quarter and half year results for the 6 months ended 31 August 2021 and included such see the benefit thereof, via growth in customer acquisition, by the end of the fourth quarter of 2022. 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 Profit for the first half of 2022 decreased by 12% to ZAR231 million (HY 2021: ZAR262 million). Excluding release as published and available on the Karooooo website at www.karooooo.com. 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 Second Quarter 2022 Highlights: 29% in 2021, primarily attributable to once-off IPO costs that are not tax deductible. (All comparisons relative to the Second Quarter 2021) Similarly earnings per share for the first half of 2022 decreased by 13% to ZAR7.37 (HY 2021: ZAR8.43). SCALE 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: Karooooo's strong growth momentum in the number of subscribers continues. Despite the disruption in sales ZAR8.43), primarily due to Karooooo's planned investment for future growth. The decrease in earnings per caused by the social unrest experienced in July 2021 in South Africa and the global effects of the pandemic, share and adjusted earnings per share, a non-IFRS measure, was further impacted by the increase in our business model drove new customer additions, delivering growth in the total number of subscribers. 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 ? 1,408,609 subscribers in total as of August 31, 2021, up 20% (Q2 2021: 1,175,173) when Karooooo listed on the NASDAQ in April 2021. ? Net subscriber additions increased 1% to 42,139 (Q2 2021: 41,626) 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 GROWTH 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 ? Total revenue increased 20% to ZAR659 million (Q2 2021: ZAR551 million) cash reserves on hand will be held in US Dollars, which will be translated into ZAR for reporting purposes. ? Total revenue increased 24% on a constant currency basis (a non-IFRS measure) 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 ? Subscription revenue increased 16% to ZAR628 million (Q2 2021: ZAR542 million) 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 ? Subscription revenue increased 21% on a constant currency basis (a non-IFRS measure) 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 ? In ZAR, Annualized Recurring Revenue ("ARR"), a non-IFRS measure, increased 15% to ZAR2,540 28.1 million shares (HY 2021: 20.3 million) as a result of Karooooo's take-over of Cartrack Holdings and the million as at August 2021 (August 2020: ZAR2,213 million) capital raise when Karooooo listed on the NASDAQ in April 2021. ? In US Dollars ("USD"), ARR, a non-IFRS measure, increased 34% to USD175.1 million (August The total IPO costs amounted to ZAR85 million of which ZAR36 million has been expensed (ZAR26 million in the fourth 20qu 20arter : US D13 of 20 0.8 21 m aind llio n) ZA R10 million in the first quarter of 2022) and ZAR49 million has been set-off against share capital. Half-Year 2022 Highlights: Investors are referred to Karoooo's full press release for the reconciliation of basic and diluted headline and (All comparisons relative to the Half-Year 2021) adjusted earnings per share and for the reconciliation of Karooooo's basic and diluted earnings per share and adjusted earnings per share. SCALE: Short-fo rm Announcement ? 1,408,609 subscribers in total as of August 31, 2021, up 20% (Q2 2021: 1,175,173) This short-form announcement is the responsibility of the directors of Karooooo. This short-form ? Net subscriber additions increased 111% to 102,609 (HY 2021: 48,658) 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 GROWTH on consideration of, inter alia, the full announcement. ? Total revenue increased 18% to ZAR1,285 million (HY 2021: ZAR1,086 million) The full announcement ("full announcement") includes the contents of the Report on Form 6-K as furnished ? Total revenue increased 23% on a constant currency basis (a non-IFRS measure) to the SEC dated 14 October 2021, being the press release incorporating the unaudited condensed consolida ted? an d Sub com scbi ript ne io dn re fina vnc enial ue s itat ncr em eas en ed ts 1 of 6% to Karoooo ZARo 1,2 for 34 m the ils liec onon (H dY qu 202 art1 er : ZAR and 1,0 hal68 f y m eair ll ien onde ) d 31 August 2021. ? Subscription revenue increased 20% on a constant currency basis (a non-IFRS measure) Kar Theo fo ulo l o an o Lt noun d. cement has been released on SENS today, 15 October 2021 and is available for viewing on the (a p C ub om lic c pa om ny'pa s webs ny inc itorp e (www. orated karoooo and reg o.c istered om) an in t d a he t tRepu he folbl loiw c of ing S ad ing dres aposr:e) (Unique Entity Number: 201817157Z) JSE share code: KRO NASDAQ share code: KARO https://senspdf.jse.co.za/documents/2021/jse/isse/KROE/HY2022.pdf Operating Profit, Profit, Adjusted Profit, Earnings per Share and Adjusted Earnings per Share ISIN: SGXZ19450089 ("Karooooo") The group delivered operating profit of ZAR346 million for the first half year of 2022 (HY 2021: ZAR368 The full announcement is available for inspection at the offices of the Company (10-Anson Road #12-14, million), 6% lower than the first half of 2021. The group had net subscriber additions of 102,609 during the International Plaza, Singapore, 079903) at no charge during normal office hours on business days from Short-form Announcement: Unaudited Second Quarter and Half Year 2022 Results first half of 2022, 111% higher than in the first half of 2021, primarily as a result of an increased investment in Thursday, 14 October 2021 to Thursday, 21 October 2021. Copies of the full announcement may also be sales and marketing expenditure which takes approximately 6 months to translate into customer acquisition. requested from the sponsor by emailing [email protected]. Karooooo, that owns 100% of Cartrack Holdings Limited ("Cartrack"), issued a press release announcing its While the investment into sales and marketing headcount has materialized in part, management expects to unaudited second quarter and half year results for the 6 months ended 31 August 2021 and included such see the benefit thereof, via growth in customer acquisition, by the end of the fourth quarter of 2022. Conference Call Information 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 Profit for the first half of 2022 decreased by 12% to ZAR231 million (HY 2021: ZAR262 million). Excluding Karooooo management will host a conference call and audio webcast on Friday, October 15, 2021 at 08:00 release as published and available on the Karooooo website at www.karooooo.com. the impact of once-off IPO costs expensed in the first quarter of 2022 (ZAR10 million), adjusted profit, a non- a.m. Eastern Time (02:00 p.m. South African time; 08:00 p.m. Singaporean time). 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 Webcast: Registration is available at https://edge.media-server.com/mmc/p/4i5vcejb. A live and archived Second Quarter 2022 Highlights: 29% in 2021, primarily attributable to once-off IPO costs that are not tax deductible. webcast of the conference call will also be available on the Company's website at www.karooooo.com. (All comparisons relative to the Second Quarter 2021) Similarly earnings per share for the first half of 2022 decreased by 13% to ZAR7.37 (HY 2021: ZAR8.43). Conference call: Listeners may access the live conference call by dialing the following numbers and are SCALE Excluding the impact of once-off IPO costs expensed in the first quarter of 2022 (ZAR10 million), adjusted advised to dial in approximately 10 minutes prior to the start of the call: earnings per share, a non-IFRS measure, decreased by 8% to ZAR7.74 in the first half of 2022 (HY 2021: Karooooo's strong growth momentum in the number of subscribers continues. Despite the disruption in sales ZAR8.43), primarily due to Karooooo's planned investment for future growth. The decrease in earnings per United States Toll Free: 1 833 239 5575 caused by the social unrest experienced in July 2021 in South Africa and the global effects of the pandemic, share and adjusted earnings per share, a non-IFRS measure, was further impacted by the increase in International: +65 678 012 01 our business model drove new customer additions, delivering growth in the total number of subscribers. Karooooo's weighted average number of ordinary shares in issue for the first half of 2022, at 28.1 million Singapore Toll Free: 800 852 8350 shares (HY 2021: 20.3 million) as a result of Karooooo's take-over of Cartrack Holdings and the capital raise South Africa Toll Free: 0800 014 509 ? 1,408,609 subscribers in total as of August 31, 2021, up 20% (Q2 2021: 1,175,173) when Karooooo listed on the NASDAQ in April 2021. United Kingdom Toll Free: 0800 279 8053 ? Net subscriber additions increased 1% to 42,139 (Q2 2021: 41,626) In June 2021, Cartrack declared ZAR120 million in dividends to Karooooo and incurred ZAR6 million Access Code: 3298232 dividend withholding taxation which negatively impacted earnings per share by ZAR0.19 during the second GROWTH quarter of 2022. The dividend paid equated to USD8.3 million, using an exchange rate of ZAR13.69. The About Karooooo Ltd. Group's Capital Allocation Committee has adopted a cash management policy whereby Karooooo's excess ? Total revenue increased 20% to ZAR659 million (Q2 2021: ZAR551 million) cash reserves on hand will be held in US Dollars, which will be translated into ZAR for reporting purposes. Karooooo, headquartered in Singapore, is a leading global provider of a mobility SaaS platform that max? im izT es ota the l rev ven alue ue i of nc au rea tom sed oti 24 ve % on a and w cork ons flta ow nt d cata urren bc y yprov basiid s ( ing a n ro en al -IFR -timS e m da ea ta sure) ana lytics solutions for Headline earnings per share for the first half of 2022 decreased by 13% to ZAR7.35 (HY 2021: ZAR8.43). smart transportation to over 1.4 million connected vehicles. With more than 76,000 commercial customers Excluding the impact of once-off IPO costs expensed in the first quarter of 2022 (ZAR10 million), adjusted using ? the S ub Cartr scrac iptk io (n re who vlen ly o ue w ne inc d re bas y K ed arooo 16% to oo) Z SA aR aS 62 pl 8 m atform illion (Q , it is 2 2 m0 an 21 ag : Z em AR5 en42 t's m vie ilw lio tha n) t Karooooo is the headline earnings per share, a non-IFRS measure, decreased by 8% to ZAR7.72 in the first half of 2022 (HY largest SaaS provider to enterprises in South Africa and it also services thousands of enterprise customers 2021: ZAR8.43), primarily due to Karooooo's planned investment for future growth. The decrease in headline ab roa ? d. S Tub hes C crartr iptio ac n re k pl vatf enorm ue inc prov reas ide ed s 2 cus 1% o tom n a ers c w ons ith tan dift c feruen rren tiate cyd ba ins sis igh (a n ts an ond -IFR data S m an ea als yure) tics to optimize earnings per share and adjusted headline earnings per share, a non-IFRS measure, was further impacted by their business and workforce, increase efficiency, decrease costs, improve safety, monitor environmental the increase in Karooooo's weighted average number of ordinary shares in issue for the first half of 2022, at i mpa ?c t, a In ss Z is At wi R, th Ann reua gulliato zed r yRec com urr pliing an c R e ev an en d m ue an ("A ag RR" e ri)s , ka . For non m -IFR ore i S nf mor ea m sati ure, oni, nc virsea it www sed 15 .ka % roo too Z oo A.c Rom 2,5 40 28.1 million shares (HY 2021: 20.3 million) as a result of Karooooo's take-over of Cartrack Holdings and the million as at August 2021 (August 2020: ZAR2,213 million) capital raise when Karooooo listed on the NASDAQ in April 2021. Johannesburg ? In US Dollars ("USD"), ARR, a non-IFRS measure, increased 34% to USD175.1 million (August The total IPO costs amounted to ZAR85 million of which ZAR36 million has been expensed (ZAR26 million in Friday, 15 October 2021 the fourth 20qu 20arter : US D13 of 20 0.8 21 m aind llio n) ZA R10 million in the first quarter of 2022) and ZAR49 million has been set-off against share capital. Sponsor Half -Year 2022 Highlights: Investors are referred to Karoooo's full press release for the reconciliation of basic and diluted headline and Merrill Lynch South Africa Proprietary Limited (All comparisons relative to the Half-Year 2021) adjusted earnings per share and for the reconciliation of Karooooo's basic and diluted earnings per share t/a BofA Securities and adjusted earnings per share. SCALE: Short-fo rm Announcement ? 1,408,609 subscribers in total as of August 31, 2021, up 20% (Q2 2021: 1,175,173) This short-form announcement is the responsibility of the directors of Karooooo. This short-form ? Net subscriber additions increased 111% to 102,609 (HY 2021: 48,658) announc ement 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 GROWTH on consideration of, inter alia, the full announcement. ? Total revenue increased 18% to ZAR1,285 million (HY 2021: ZAR1,086 million) The full announcement ("full announcement") includes the contents of the Report on Form 6-K as furnished ? Total revenue increased 23% on a constant currency basis (a non-IFRS measure) to the SEC dated 14 October 2021, being the press release incorporating the unaudited condensed consolida ted? an d Sub com scbi ript ne io dn re fina vnc enial ue s itat ncr em eas en ed ts 1 of 6% to Karoooo ZARo 1,2 for 34 m the ils liec onon (H dY qu 202 art1 er : ZAR and 1,0 hal68 f y m eair ll ien onde ) d 31 August 2021. ? Subscription revenue increased 20% on a constant currency basis (a non-IFRS measure)