Karooooo Q2 EPS down 7%
Cartrack owner Karooooo says earnings per share fell 7 per cent in the second quarter as it invested in future growth initiatives. CEO Zak Calisto joins CNBC Africa for more.
Fri, 15 Oct 2021 11:05:44 GMT
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AI Generated Summary
- Karooooo reports a 7% decline in earnings per share for the second quarter as it focuses on investing in future growth initiatives.
- The company sees itself as a startup and emphasizes the importance of long-term investments in research and development, customer experience, and sales.
- Despite challenges posed by COVID-19, Karooooo maintains optimism about the trading environment in South Africa and anticipates continued growth in the market.
Cartrack owner Karooooo recently reported a 7% decline in earnings per share for the second quarter as the company focused on investing in future growth initiatives. CEO Zak Calisto explained that despite the challenges posed by the ongoing COVID-19 pandemic, the company is strategically planning for long-term growth. Calisto highlighted a significant increase in planned operating expenses, with a 25% rise in expenses allocated to research and development, customer experience, and sales. He emphasized that Karooooo views itself as a startup and is committed to making necessary investments for sustainable business growth. While the increased spending may seem substantial, Calisto pointed out that a significant portion was allocated to research and development and expanding the sales team to prepare for future expansion. The company also managed to contain general and administrative expenses, ensuring cost efficiency and economies of scale. The CEO noted that investments were primarily focused in South Africa over the past nine months due to the challenging operating conditions in other regions such as Asia and Europe. Despite facing uncertainties related to COVID-19 and market conditions, Calisto remains optimistic about the trading environment in South Africa, expressing confidence in the country's ability to navigate through the challenges. Looking ahead to 2022, he acknowledged the unpredictability of the situation but remained positive about the company's outlook in the market.