Gross profits recorded by the Botswana Stock Exchange (BSE) listed firm, CA Sales reached an impressive P279.1 million, according to the financial statement for the interim period ending 30 June 2018.
The company announced that revenue increased by 28 percent to over R2.4 billion (an equivalent of P1.7 billion) from R1.9 billion (P1.3 billion) in the prior interim period, through a combination of organic and acquisitive growth.
The board of directors said in a challenging operating environment, management continued to focus on margin retention, stock management, dynamic service levels and continual cost analysis. This, according to the company, resulted in a healthy increase in gross profit of 23 percent to R382.4 million (approximately P279.1). During the previous corresponding period, CA Sales made R309.3 million (P225.7 million).
Further, CA Sales recorded a robust 44 percent increase in headline earnings to R45.7 million (P33.3 million), supported by the increased shareholding in major subsidiaries towards the end of last year.
Headline earnings per share are up 30 percent to 10.25 cents per share, compared to 7.83 cents seen during the same prior period. The board said despite the volatile trading environment in which the businesses operate, the group is pleased with the good results produced by the major operating companies.
However, the company said manufacturers’ below the line marketing spend cuts have negatively impacted on the marketing and promotional operations and tough trading conditions prevailed in Namibia. Total assets increased by 10 percent to R 2.3 billion (P1.6 billion) mainly as a result of the acquisition of the currently occupied warehouses in Botswana at the end of June 2018. The bond over these properties increased the group’s gearing to 42 percent, from 26 percent at the prior year-end.
“CA Sales will continue its expansion by growing its principal and customer networks and making value-adding acquisitions, widening its footprint further across the African continent. It is expected that the challenging economic environment and difficult trading conditions will prevail for the time being.”
The group said it is, however, well positioned with a strong balance sheet and a diverse geographical presence across Southern Africa. CA Sales operates within the Fast-Moving Consumer Goods industry and delivers route-to-market services to blue chip manufacturers.