Earnings per share grows
Retail distributing firm CA Sales, has seen gross profit rising by more than14 percent to settle at R824 million for the year ended 31 December 2018, the company announced this week. Revenue increased by 14.8 percent to over R5.5 billion from R4.8 billion in the prior year, through a combination of organic and acquisitive growth, according to its financial statement.
According to Chief Executive Officer Frans Britz, in a challenging operating environment, management continued to focus on margin retention, stock management, dynamic service levels and continual cost analysis. He said this resulted in a double digit increase in gross profit of 14 percent to R824 million growing from P723.6 seen during the 2017 full year.
The company also recorded a robust 31 percent increase in headline earnings to R179.4 million growing from R136.8 million recorded in 2017 reporting period.
The growth was also supported by the increased shareholding in major subsidiaries towards the end of last year. Headline earnings per share was up 20 percent to 40.11 cents per share compared to 33.23 cents per share in 2017. CA Sales operates within the Fast-Moving Consumer Goods industry and delivers route-to-market services to blue-chip manufacturers. The service offering includes selling, merchandising, warehousing, distribution, shopper promotions, training and debtor’s administration. The group has a diverse geographical presence across Southern Africa operating in Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe.
Total assets increased by 22% to R2.5 billion mainly as a result of the acquisition of the land and buildings in Botswana. The bond over these properties increased the group’s debt-to-equity ratio to 36% (2017: 26%).
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, of which are perceived as imperative to its strategic expansion in growing the group’s representation in sub-Saharan Africa. South African 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 when it changed 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.
CA Sales is expected to continue its expansion by growing its principal and customer networks and making value-adding acquisitions, widening its footprint further into new markets. It is expected that the difficult economic environment in certain markets will prevail for the time being. The group is, however, well positioned with a strong balance sheet and a diverse geographical presence across Southern Africa. The group’s diversified portfolio should enable it to deliver sustainable results in the future, claim market watchers.