The integrated fast-moving consumer goods company operates in South Africa, Botswana, eSwatini, Mauritius and Zimbabwe, among others. Picture: Supplied
CA Sales Holdings is confident of growth opportunities in east and southern Africa, hoping to capitalise on its deep understanding of the regional markets after the company raised half-year revenues and earnings by 9.2% and 19.2% respectively.
The integrated fast-moving consumer goods company operates in South Africa, Botswana, eSwatini, Mauritius and Zimbabwe, among others. It offers fast-moving consumer goods selling and distribution services in addition to retail execution and advisory, retail support, technology as well as data solutions.
The company said yesterday that it was “confident of the opportunities southern and east Africa present” with its “deep understanding of these markets” expected to assist it to “navigate” the associated regional risks.
“With a steady economic growth rate averaging at 3% across most markets, these regions boast fast-growing economies. Investments in infrastructure, economic diversification and a favourable business environment further contribute to their allure,” said the company.
Further opportunities were emanating from stronger rural and urban populations which underscores demand for access to consumer packaged brands. This makes the region a hot spot for potential for sustained growth and development.
“Our confidence stems from our resilient businesses across multiple jurisdictions, that support products that shoppers require regardless of economic fluctuations, our balanced portfolio of service solutions, having a healthy balance sheet and the dedication of our leadership team and workforce,” it said.
CA Sales raised revenue for the half year to June 2024 by 9.2% to R5.7 billion. It said the revenue growth had been driven by sales volume increases, inflation, acquisitions, expansion into new regions, and the on-boarding of new clients.
Headline earnings per share for the period firmed up by 19.2% to 43.45 cents per share, although operating profit decreased by 21.1% to R305.38 million.
CA Sales attributed the decrease in operating profits for the period under review to the gain on bargain purchase entry of R123.5m in the prior year which had resulted in the acquisition of the T&C Group in Namibia.
Total assets increased by 10.5% to R5bn due to the increase in fixed capital, mainly the expansion of warehouse capacity, as well as cash and working capital to support the increased revenue.
CA Sales acquired 49% of South Africa-based Roots, which services the informal market in the country, early this year. The transaction was described as a channel-broadening acquisition for the company.
BUSINESS REPORT