CA Sales Holdings warehouse. The group is growing well despite the constrained consumer retail environment, and its final dividend increased 24.9% for the year to December 31, 2024.
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CA Sales Holdings lifted its final dividend 24.9% to 24.44 cents a share for the year to December 31, 2024 after organic growth, acquisitions and expansion into new regions boosted revenue.
The company increased its revenue by 10.6% to R12.52 billion, from R11.32bn in the prior corresponding year, providing route-to-market solutions for some of the world’s most loved fast-moving consumer goods brands in several Southern and East African countries.
Operating profit increased by 4.7% to R782.57 million. Headline earnings per share (HEPS) increased by 25.3% to 122.71 cents per share. The share price eased 1.75% to R16.85, but it was 48.3% above what it traded at a year ago.
Operating profit and earnings per share increased only marginally as a result of a once-off gain on bargain purchase entry of R123.57m in the prior year, resulting from the acquisition of the T&C Group in Namibia. Excluding this gain, earnings per share increased by 27.9%.
Total assets increased by 9.6% to R5.65bn due to the expansion of warehouse capacity, intangible assets as a result of business combinations, investments in associates, as well as cash and working capital to support the increased revenue.
On the outlook, the group’s management said that while they acknowledge the instability of the global economy and persistent disruptions in supply chains, “we are confident we will continue to deliver on our objectives.”
Their businesses were resilient across multiple jurisdictions, supporting products that shoppers require regardless of economic fluctuations. In addition, the portfolio of service solutions was balanced, the balance sheet was healthy, and the workforce was dedicated, they said.
“We remain confident of the opportunities presented in Southern and East Africa. A deep understanding of these markets assists us in navigating the associated risks. With a steady economic growth rate averaging at 3% across most markets, these regions boast growing economies," the directors said.
Investments in infrastructure, economic diversification, and a favourable business environment further contribute to their appeal. Additionally, the presence of both rural and growing urban populations underscored the demand for access to consumer-packaged brands, highlighting the region's potential for sustained growth and development.
In line with the group’s channel broadening strategy, 49% of the share capital of Roots Sales was acquired for R70m on March 25, 2024. Roots services include sales, merchandising, and delivery solutions in the informal market in the country.
In line with a strategy to supply additional services to clients, the remaining shares of the Macmobile Group was acquired for R37.65m on October 18, 2024, settled in cash and shares.
The Macmobile Group provides information technology and data solutions to the formal retail sector and merchants in the informal market (general trade), delivering market intelligence across the entire value chain of the fast-moving consumer goods sector.
In terms of revenue, R6.34bn was derived from Botswana, R1.87bn from Eswatini, R2.26bn from Namibia, R1.82bn from South Africa, while R383.09m of revenue came from other countries.
In terms of adjusted earnings before interest, tax, depreciation, and amortisation, R331.5m was derived from Botswana, R287.37m from South Africa, R172.6m from Eswatini, and R66.66m from Namibia.
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