Question · Q3 2026
Colin Smith asked about the impact of the materially stronger South African rand on Karooooo's underlying operations. He also inquired if an existing subscriber adding a video Cartrack tag would reset their standard 36-month contract. Additionally, Smith questioned whether the current share price level would prompt management to consider a share buyback.
Answer
Zak Calisto, Founder and Group CEO, explained that a stronger South African rand has a minor positive impact on telemetry equipment production. However, for reporting purposes, it negatively impacts reported ZAR revenue from non-South African operations, while being positive if reporting in USD. Calisto clarified that the 36-month contract is not material to Karooooo; the company prioritizes long-term customer retention through excellent service rather than enforcing contract terms. Regarding share buybacks, he stated that such actions are complex for a listed entity due to SEC rules, and the company prefers to focus on business growth and asset quality rather than market timing or complex buyback strategies that could lead to delisting.
Ask follow-up questions
Fintool can predict
KARO's earnings beat/miss a week before the call