News

CA&S Group produces stellar results for the year ending 31 December 2022

  • Revenue up 18.2%
  • Operating profit up 32.4%
  • Earnings per share up 35.3%
  • Headline earnings per share up 31.2%
  • Dividend per share up 30.4%

 

Johannesburg Stock Exchange (JSE) and Botswana Stock Exchange (BSE) listed diversified retailer, CA Sales Holdings Limited (CA&S Group), today announced very satisfying annual results for the year ended 31 December 2022. This is due to an improved trading environment with resultant sales volume increases and the successful onboarding of new clients.

Revenue increased by 18.2% to R9.5 billion on the prior year (2021: R8.0 billion). Gross profit increased by 24.9% to R1.4 billion (2021: R1.1 billion) whilst overheads increased by 19.4% on the prior year. Over and above inflation, this increase included significant increases in fuel and energy prices across all the regions, over the past year.

The improved trading environment, compared to the prior year’s restrictions and coupled with managing cost increases, contributed to the increase of 32.4% in operating profit for the group to R531.1 million (2021: R401.0 million). Headline earnings increased by 33.7% to R363.2 million (2021: R271.6 million). Headline earnings per share was up 31.2% to 78.2 cents per share (2021: 59.6 cents), whilst earnings per share increased by 35.3% to 78.5 cents per share (2021: 58.0 cents).

Total assets increased by 13.7% to R4.1 billion due to an increase in fixed and intangible assets as well as working capital. The strong cashflow generated from operations contributed to a healthy increase in net cash resources from R344.1 million on 31 December 2021 to R451.1 million at 31 December 2022.

“The dual listing for CA&S on the JSE which took place in June 2022 has raised the profile of our group within the South African based retail and institutional investors and has increased the liquidity of our share. In particular we are pleased to announce an increase in the dividend declared to our shareholders, of 30.4% to 15.35 cents per share, from 11.77 cents in the previous year”. commented CEO Duncan Lewis.

Commenting on the execution of its growth strategy during the year under review, Lewis explained that, “the group acquired an additional sales and in-store execution business, Effective Sales and Merchandising (Pty) Ltd, based in South Africa, as part of its channel broadening strategy whilst its expansion strategy saw the group increase its shareholding in Smithshine Enterprises (Pty) Ltd in Botswana and, and increase its shareholding to 100%, in Promexs Ltd in Zambia and Logico Unlimited (Pty) Ltd in Eswatini. On 2 January 2023, the group also acquired a Namibian group of companies, including its properties, known as the T&C Group, this transaction taking place after the balance sheet close at end December 2022.”

In providing an outlook for the year ahead, Duncan Lewis stated that, “the ongoing 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 economic environment and rising inflation is expected to continue across the globe and into the foreseeable future. The ongoing energy crisis facing South Africa, with various stages of load-shedding, will continue to disrupt businesses and households alike. Notwithstanding, the group is well positioned with its strong balance sheet and a diverse geographical presence as well as a diversified portfolio which should continue to enable it to deliver good results for the year ahead.”

 

“The group will continue its expansion of services for new and existing clients and will continue to offer bespoke solutions to brand owners across the region. A focus will be on continued channel broadening across existing businesses within existing geographies. Where feasible, the group will also grow its client and customer networks and make value-adding acquisitions’, concluded Lewis.

Ends

 

About CA&S Group

CA Sales Holdings Limited (“CA&S” or “the group”) is the holding entity of a collective of well-established fast-moving consumer goods (“FMCG”) retail solutions businesses that operate across Southern Africa, offering route-to-market services to prominent multinational, as well as local brand owners and manufacturers. The group partners with its clients to take brands across geographical borders, then assists moving them through the supply chain and into stores, onto shelves and into baskets and trollies, ensuring they are available, visible and promoted to shoppers across the Southern African region. CA&S works closely with its clients to solve trade obstacles, to build category and brand presence on shelf and to protect and grow their respective market shares. The group’s services include warehousing and distribution, retail execution and advisory, retail support, training, and technology and data solutions.

www.cas.group