Headline earnings jump 60 per cent
CA Sales Holdings, duel listed on the Botswana Stock Exchange and 4 Africa Exchange as a sales and distribution services provider for fast moving consumer goods in Southern Africa, has despite a tough trading environment produced solid results in the six months to June 2019.
Headline earnings per share increased by a hefty 59.3% to 16.3 cents (2018: 10.2 cents) following a 60.4% increase in headline earnings to R73.3 million (2018: R45.7 million). Revenue increased by 20.6% to over R2.9 billion from R2.4 billion, mostly through organic growth.
Total assets increased by 14.6% to R2.6 billion due to the increase in right-of-use assets in accordance with IFRS16, as well as a significant increase in working capital, mainly due to the increased revenue.
Announcing the results CA Sales CEO, Duncan Lewis, said the results are very pleasing considering the head winds in some of the territories in which the group’s businesses operate.
“The growth was underpinned by a good overall performance from all the major operations. The Botswana operations remain the key contributor to performance with a 58% contribution to revenue. Wutow in Namibia has increased its contribution to earnings despite the region grappling with a declining economy.”
CA Sales aims to continue its expansion by growing its principal and customer networks and making value-adding acquisitions, broadening its footprint further across the African continent.
While it is expected that the challenging economic environment and difficult trading conditions will continue for the time being, the group is well positioned to weather conditions with a strong balance sheet and a diverse geographical presence across Southern Africa.
“The group is optimistic about the second half of the year as we are moving into peak seasons in the retail sector. The group’s diversified portfolio should enable it to deliver sustainable results for the remainder of the year,” Lewis said.
CA Sales’ offering includes warehousing, distribution, selling, merchandising, shopper marketing, training and debtor’s administration. The group has a diverse geographical presence across Southern Africa operating in Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe.
Related
