KarooPrime Capretto — Revenue Model
The unit economics, the revenue by stream and the channel strategy underpinning the revenue model.
Section 7 · Business Plan
Revenue Model
The unit economics, the revenue by stream and the channel strategy underpinning the revenue model.
Revenue is generated from the sale of graded chilled and frozen
carcasses and cuts, value-added products and fifth-quarter items, across
four channels: premium domestic retail, domestic foodservice and
wholesale, export, and by-product sales. The blended net realisation per
head rises over the plan as the mix shifts toward export and value-added
lines.
7.1 Unit economics
The model is built bottom-up from per-head economics. Animals are
procured live at an average of roughly R1,280–R1,500 per head over the
plan, finished in feedlots, and sold at blended net realisations rising
from approximately R2,350 to R3,180 per head as channel mix and grading
improve. A fifth-quarter and value-added uplift of 6–15% is layered on
the core carcass price.
| Per-head economics | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Throughput (head) | 38,000 | 72,000 | 118,000 | 178,000 | 240,000 |
| Avg procurement cost / head (R) | 1,280 | 1,330 | 1,385 | 1,440 | 1,500 |
| Blended net realisation / head (R) | 2,350 | 2,520 | 2,750 | 2,950 | 3,180 |
| Value-added uplift | 6% | 8% | 11% | 13% | 15% |
7.2 Revenue by stream
Core carcass and meat sales dominate revenue throughout the plan,
supplemented by a growing value-added and fifth-quarter contribution.
Total revenue scales from R94,7 million in Year 1 to R877,7 million in
Year 5.
| Revenue stream (ZAR m) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Core carcass & meat sales | 89,3 | 181,4 | 324,5 | 525,1 | 763,2 |
| Value-added & fifth-quarter | 5,4 | 14,5 | 35,7 | 68,3 | 114,5 |
| Total revenue | 94,7 | 196,0 | 360,2 | 593,4 | 877,7 |
7.3 Channel strategy
In the early years the Company prioritises domestic premium retail
and foodservice to establish brand, cash flow and operating rhythm. As
export accreditations are secured from late Year 2, the export share
rises, lifting blended realisations. By-product sales provide a steady,
counter-cyclical revenue layer that improves overall asset
utilisation.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of KarooPrime Capretto (Pty) Ltd.