CA SALES HOLDINGS LIMITED - Unaudited Results For The Six Months Ended 30 June 2023

Unaudited Results For The Six Months Ended 30 June 2023

CA SALES HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 2011/143100/06
Registered as an external company in the Republic of Botswana
Botswana registration number: BW00001085331
JSE Limited (“JSE”) share code: CAA
Botswana Stock Exchange (“BSE”) share code: CAS-EQO
ISIN: ZAE400000036
(“CA&S” or “the Company” or “the group”)


UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2023



1. NATURE OF BUSINESS

     CA&S is the holding entity of a collective of well-established fast-moving consumer goods
     (“FMCG”) retail solution businesses, operating throughout Southern Africa, offering
     comprehensive route-to-market services to prominent multinational brand owners, as well
     as leading national brand owners and manufacturers.

     In collaboration with its clients, CA&S transcends boundaries, geographical and otherwise,
     to propel brands into diverse and expansive retail channels across Southern African
     markets. The group’s primary commitment lies in solving trade impediments, amplifying
     the presence of categories and brands on retail shelves, and safeguarding and growing
     clients’ market shares. The group’s array of services includes warehousing and
     distribution, retail execution and advisory, retail support, training, and technology and data-
     driven solutions.

     CA&S fosters strategic partnerships, empowering its clients in navigating the complexity
     of the retail industry in these markets.


2.   SALIENT FEATURES

     Revenue growth was driven by sales volume increases, inflation, acquisitions, expansion
     into new regions as well as the on-boarding of new clients to the group’s portfolio. The
     positive top line growth and the gain on bargain purchase contributed to the increase in
     operating profit for the group.

     Revenue increased by 22.5% to R5.2 billion, from R4.3 billion in the prior corresponding
     period.

     Operating profit increased by 75.5% to R387.0 million, from R220.6 million in the prior
     corresponding period.

     Headline earnings per share (“HEPS”) increased by 21.5% to 36.5 cents per share, from
     30.0 cents per share in the prior corresponding period.

     Earnings per share (“EPS”) increased by 108.9% to 63.4 cents per share, from 30.3 cents
     per share in the prior corresponding period.

     EPS increased by a larger margin than HEPS mainly as a result of a gain on bargain
     purchase entry of R123.6 million, arising from the January 2023 acquisitions of the T&C
     Group in Namibia, which was excluded from headline earnings in the reporting period.

     Total assets increased by 22.4% to R4.5 billion due to the increase in fixed and intangible
     assets as a result of business combinations as well as working capital from increased
     revenue.

     No dividend has been declared for the six months ended 30 June 2023 (30 June 2022:
     nil), as it is the Company’s policy to only declare dividends once a year, after its year-end.

3.   OUTLOOK

     Despite the challenging global economic landscape, marked by adverse conditions and
     persistent inflation, CA&S remains steadfast in its resilience and strategic positioning. With
     a robust balance sheet, a widespread geographical footprint across Southern Africa, as
     well as a portfolio marked by diversification, the group is poised to deliver favourable
     results throughout the remainder of the current financial year. Its growth strategy of
     expanding its services to existing and new clients, channel broadening, expansion into
     new geographies, coupled with value-adding acquisitions, will ensure the group remains
     firmly on course to attain its growth aspirations.


4.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the Company. It
     contains only a summary of the information in the full announcement (“Full
     Announcement”) and does not contain full or complete details. The Full Announcement
     can be found at:
     https://senspdf.jse.co.za/documents/2023/JSE/ISSE/CAAE/CAAHY23.pdf

     A copy of the Full Announcement is also available for viewing on the Company’s website
     at https://casholdings.co.za/investor-relations/?Financial%20Results/ or may be
     requested in person, at the Company’s registered office or the office of the Company’s
     JSE sponsor, PSG Capital, at no charge, during office hours.

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.

     These interim results have not been audited, reviewed or reported on by the Company’s
     auditors.

     Centurion
     28 August 2023


     JSE Sponsor
     PSG Capital


     BSE Sponsoring Broker
     Imara Capital Securities  

Date: 28-08-2023 09:00:00
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