Despite a significant jump in profitability, annual bonuses paid to CA Sales Chief Executive Officer and Chief Financial Officer in 2017 were cut by exactly R3.6 million each, the company revealed in its 2017 annual report.
During the 2016 financial year, Trevor Rogers, Finance Director of CA Sales was paid the most. His salary was a total of R3.586 000, which translates to R298 833 every month. The board of directors paid him an annual bonus of R5 195 000, which brought his annual pay to a whopping R8 781 000. On the hand, Frans Bridtz, CEO of CA Sales was in 2016 paid a salary of R2 338 000, a monthly pay of R194 833. Like his Finance Director, he was also paid a bonus of P5 195 000. His total pay for the year was R7 533 000. In 2016 only, CA Sales spent R16 314 000 on the remuneration of CEO and Finance Director. The same year Frans Reichert, Company Secretary was paid R1 161 000 as salary, R500 000 as bonus which calculated to R1 661 000 as his annual earnings.
However in 2017, while salaries were not reduced, the CA Sales top brass received a heavy reduction in their bonus which reduced their annual earnings as compared to 2016. Rogers, the Finance Director who earns more than anyone at CA Sales was paid R3 723 000 as salary in 2017. The salary was hiked by R137 000 from that of 2016, receiving earnings of R310 250 every month in 2017. However, his bonus in 2017 was only R1 500 000, having dwindled by R3 695 000 from the R5 195 000 he was paid in 20126. This means his total annual pay also decreased from R8 781 000 to R5 223 000. As for Britz, his salary for 2017 was R2 810 000, having been increased from R2 338 000 in 2016. His monthly pay translated to R234 166. Like his Finance Director, the board of Directors decided to decrease his bonus. As compared to R5 195 000 in 2016, the board only awarded him R1 500 00. In total, the two directors were paid a combined total of R9 533 000, as compared to R16 314 000 in 2016.
The Company Secretary’s salary was also upped to R1 323 000 in 2017, but his bonus was cut from R500 000 to R200 000 bringing his total annual pay in 2017 to R1 523 000 from R1 661 000 in 2016.
In general, CA Sales spent R218 478 000 on wages and salaries, including restructuring costs and other termination benefits and allowances in 2017. In 2016, the figure was R162 986 000.
Usually, a bonus is based on the company performance. Directors are paid more when profits are higher, and less when profits decline. As for CA Sales, all major operations performed above expectation in 2017.
Revenue increased by 20 percent to over R4.8 billion from R4.0 billion. According to the CEO, a continued focus on margin retention and cost containment assisted in attaining a robust increase in gross profit of 15 percent to R723.6 million and over 28 percent in headline earnings to R136.8 million from R106.4 million. The company recently listed on the Botswana Stock Exchange (BSE) and had one of the largest Initial Public Offerings (IPOs) ever.
Amongst the eleven IPOs conducted on the BSE for the past seven years, CA Sales, the Fast Moving Consumer Goods (FMCG) distributor raised the highest turnover, according to information released by the domestic bourse.
Since 2010, Thapelo Tsheole CEO of the BSE said that 11 companies issued IPOs, to eventually trade on the BSE. CA Sales in the period between 2010 and 2017 raised the most cash during the IPO.
The company, which commenced trading on the 9th of November 2017 was oversubscribed, a sign of the stock being in high demand. At the IPO Tsheole said US47 million, an equivalent of approximately P470 million was raised.
The Board of CA Sales announced that 376 applications totaling 146 191 572 shares were received from invited investors and the public by 1 November 2017 for the available 136 112 994 ordinary shares of P3.45 each on offer.
CA Sales & Distribution is one of Botswana’s largest sales, merchandising, warehousing and distributors of fast moving goods and commodities. The dominant distributor has reputable brands under its wings that are seen as strategic in the expansion imperative of growing the group’s representation in sub-Saharan Africa. It houses brands which include the likes of Pick & Pay, Tiger Brands, Distell Botswana, Colgate Palmolive, Clicks, Heineken, Spar and Engen.
The company commenced trading 27 years ago as CA Enterprises in Botswana. It acquired Dafin Sales in 2004 and Kalahari Sales in 2006 subsequently changing its name to CA Sales & Distribution. Currently CA Sales & Distribution provides full distributorship services in Botswana for ambient products and is the country’s largest distributorship business.