CA Sales Holdings delivered robust first-half results, with 9.2% revenue growth and a 19.7% increase in headline earnings, reflecting the successful execution of its growth strategy across southern and East Africa.
This content is supplied by CA Sales Holdings
CA Sales Holdings Limited “CA&S Group”, (JSE: CAA, BSE: CAS-EQO) a collective of fully integrated fast-moving consumer goods businesses in Africa, is pleased to announce satisfactory interim results for the period ended 30 June 2024. The company’s performance reflects the deliberate execution of the Group’s growth strategy across southern and East African markets and its commitment to delivering value to shareholders.
Financial Performance Highlights:
- Revenue Growth: Increased by 9.2% to R5.73 billion, driven by higher sales volumes, inflation, new acquisitions, and expansion into new regions.
- Gross Profit: Rose by 10.6% to R870.35 million, reflecting strong top-line performance.
- Headline Earnings: Increased by 19.7% to R206.83 million, with headline earnings per share (“HEPS”) up 19.2% to 43.45 cents.
- Operating Profit: Decreased by 21.1% to R206.83 million.
- Earnings per Share (“EPS”): Decreased by 30.7% to 43.90 cents per share.
- Operating profit and EPS decreased due to a gain on bargain purchase entry of R123.57 million in the prior year resulting from the acquisition of the T&C Group in Namibia. Excluding the gain on bargain purchases in the prior year, EPS shows an increase that is more in line with the HEPS increase.
- Total Assets: Grew by 10.5% to R5.03 billion, supported by warehouse capacity expansion and strong operational cash flow.
- Strategic Acquisition: On 1 April, the group acquired 49% of the share capital of Roots Sales (Pty) Ltd (“Roots”) for R70 million. Roots is domiciled in South Africa and services the informal market in the country, which is a channel-broadening acquisition for the group.
“Our performance in the first half of 2024 is a testament to our team’s focus on executing our growth strategy and responding to evolving market demands,” said Mr. Duncan Lewis, CEO of CA&S Group. “The revenue growth and increased gross profit we have achieved are encouraging, as they reflect the strength of our business model and our ability to navigate challenging market conditions.”
Mr. Lewis added, “We remain confident of the opportunities that southern and East Africa present. A deep understanding of these markets assists us in navigating the associated risks. These regions boast fast-growing economies with a steady economic growth rate averaging 3% across most markets. Investments in infrastructure, economic diversification and a favourable business environment further contribute to their allure. Additionally, the presence of both rural and urban populations underscores the demand for access to consumer-packaged goods, highlighting the region’s potential for sustained growth and development.”
“While we acknowledge the instability of the global economy and persistent disruptions in supply chains, we are confident we will continue to deliver on our objectives. Our confidence stems from our resilient businesses across multiple jurisdictions, that support products that shoppers require regardless of economic fluctuations, our balanced portfolio of service solutions, having a healthy balance sheet and the dedication of our leadership team and workforce,” concluded Lewis.
Per the company’s policy to declare dividends annually post-yearend, no interim dividend has been declared.
