CA Sales : &S Group Interim Financial Results

NEWS

5 September, 2022

CA&S Group Interim Financial Results

• Revenue increased 20%
• Operating profit increased 47%
• Headline earnings per share increased 44%
• Earnings per share increased 56%

CA Sales Holdings Limited ("CA&S" or "the group") the holding entity of a collective of well-established fast-moving consumer goods (FMCG) retail solutions businesses that operate across Southern Africa, today announced satisfying half-year results for the period ended 30 June 2022, albeit based on a prior year first half that was negatively impacted by Covid-19 trading restrictions.

"We are pleased to note an increase in revenue by 20% to R4.3 billion on the prior interim period (H1:2021) of R3.6 billion. This revenue growth was driven by sales volume increases as well as the on-boarding of new clients to the group's portfolio. Gross profit increased by 25% to R625.2 million (H1 2021: R499.1 million) due to a change in the category mix. Overheads increased by 16% on the prior corresponding period. Over and above inflation, this increase included the significant increases in fuel prices across all regions, over the last six months." Stated Duncan Lewis CEO of CA&S.

The positive trading environment coupled with managing cost increases, contributed to the increase of 47% in operating profit for the group to R215.0 million (H1 2021: R146.5 million). headline earnings increased by 46% to R138.4 million (H1 2021: R94.5 million). Headline earnings per share was up 44% to 30.0 cents per share (H1 2021: 20.8 cents). Earnings per share increased by 56% to 30.3 cents per share (H1 2021: 19.4 cents).

Total assets increased by 17% to R3.7 billion due to the 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 R374.2 million at 30 June 2021 to R459.4 million at 30 June 2022.

The group also acquired an additional sales and merchandising business based in South Africa, as part of its channel broadening strategy. This transaction gave rise to intangible assets of R36 million.

No dividend has been declared for the six months ended 30 June 2022 (Hi 2021: nil) as it is the group's policy to only declare dividends once a year, after its year-end.

Duncan Lewis noted that, "the increased geopolitical risks as a result of the protracted conflict between Russian and Ukraine adversely impacted on global economic conditions which resulted in rising energy and other commodity prices as well as scarcity of certain raw materials".

He further elaborated that, "global inflation and the challenging economic environment are expected to continue into next year. However, 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 remainder of the financial year."

"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 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.

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, various models of distribution, sales, merchandising, shopper marketing and training as well as selected debtor services, category consultation and key account assistance.
CA&S holds a dual listing on the Johannesburg (JSE) and Botswana (BSE) Stock Exchange.