CA Sales Holdings (CA&S) lifted its dividend 30.4% to 15.35 cents a share in its maiden year as a listed group and it is well placed to continue to deliver good results in the year ahead, CEO Duncan Lewis said yesterday.
The retail group has a strong balance sheet and a diverse portfolio and geographic presence, he said at the end of the financial year to December 31, where headline earnings per share increased well by 31.2% to 78.2 cents per share.
CA&S’s dual listing on the JSE and Botswana Stock Exchange in June 2022 had raised its profile among South African retail and institutional investors, and had increased the liquidity of the share, he said.
The share price rose 3.42% to R7.25 by yesterday midday, close to the listing price of R7.54 and between the high of R17.50 and low of R5.05 that the share has traded at in 12 months.
Revenue was up 18.2% to R9.5 billion, while gross profit increased 24.9% to R1.4 billion – overheads had increased by 19.4% over the prior year due to inflation, and in particular increases in fuel and energy prices across all the regions.
Lewis said the strong results were due to an improved trading environment and sales volume increases, and the onboarding of new clients.
The improved trading environment, compared to the prior year’s Covid-19 restrictions and managed cost increases contributed to a 32.4% increase in operating profit to R531.1 million. Strong cash flows saw net cash resources rise to R451.1m from R344.1m.
During the year, the group acquired an additional sales and in-store execution business, effective sales and merchandising, based in South Africa, as part of a channel broadening strategy.
CA&S’s expansion strategy saw it lift its stake in Smithshine Enterprises in Botswana and increase its shareholding to 100% in Promexs in Zambia and Logico Unlimited in Eswatini.
On January 2, 2023, post financial year end, a Namibian group of companies, including its properties, known as the T&C Group, was acquired.
“The geopolitical uncertainty due to the conflict in Ukraine continues to adversely impact global economic conditions with resultant rising fuel, energy and other commodity prices, and scarcity of certain raw materials. The challenging environment and rising inflation is expected to continue across the globe and into the foreseeable future. The energy crisis facing South Africa, with various stages of load-shedding, will continue to disrupt businesses and households alike,” he said.
The group’s services and solutions for brand owners, for new and existing clients, would continue to be expanded. Channel broadening of existing channels would be a focus.
“Where feasible, the group will also grow its client and customer networks and make value-adding acquisitions,” said Lewis in a statement.
CA&S offer route-to-market services to prominent multinationals, as well as local brand owners and manufacturers. The group partners with clients to take brands across geographical borders, then assists moving them through the supply chain and into stores, on to shelves and into baskets and trollies.
BUSINESS REPORT