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CA Sales eyes Pan African expansion

Publishing Date : 17 September, 2019

Author : ALFRED MASOKOLA

Southern African spread Fast Moving Consumer Good (FMCG) distribution outfit CA Sales continued on its growth trajectory amid unfavorable trading conditions and increasing competition during the first half of 2019.


The Botswana Stock Exchange (BSE) listed sales outfit posted an impressive set of financial results for their six month period ended 30 June 2019. According to the report released this week, the group revenue increased by 20.6% to end the period at a staggering plus R2.9 billion building up on R2.4 billion gathered in the prior interim period.  This according to CA Sales is predominantly attributable to organic growth and strong business windows.


“In a challenging operating environment, we continue to focus on building capacity amongst our employees, systems, delivering operational excellence, efficient stock management, dynamic service levels and continual cost efficiencies,” said DS Lewis Chief Executive Officer of CA Sales. Lewis says this resulted in a corresponding increase in gross profit which expanded by 18.0% to end the half year period at R451.2 million compared to R382.4 million recorded at end of 2018 H1.


There was also a significant upswing movement in headline earnings bolstered by exceptional stock management efficiencies birthing a robust 60.4% increase to a half year end of R73.3 million from R45.7 million headline earning figure recorded at 2018 half year end.  Headline earnings per share went up 59.3% to 16.33 cents per share, picking up from 10.25 cent per share recorded during 2018 1st half year. “Despite head winds in some of the territories in which the business operate, the group produced pleasing results,” reiterated Lewis.


CA Sales Exco further says growth on prior year was underpinned by a good overall performance from all the major operations for the first six months of the year. Total assets increased by 14.6% to R2.6 billion due to the increase in right of use assets in accordance with IFRS 16, as well as a significant increase in working capital mainly due to the increased revenue.


With its original roots in Botswana CA Sales which has grown to a regional distribution powerhouse specializes in the fast-moving consumer goods industry and delivers route to market services to manufacturers and owners of some of the world’s leading and most prominent brands. The service offering includes warehousing, distribution, selling, merchandising, shopper marketing, training and debtor’s administration. The group has a varied geographical presence across Southern Africa operating in Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe.


CA Sales listed on the main board of Botswana Stock Exchange on the 13th November 2017. During this watershed listing 376 IPO applications totaling to 146 191 572 shares were received from invited investors and the public for the available 136 112 994 ordinary shares going at P3.45 each on offer.


The group distributes products from companies such as Tiger Brands, Unilever SA, Nestle, Kellogg’s, Nampak, Aspen, Colgate Palmolive, Pioneer Foods and South African Breweries across Southern Africa. CA Sales started operating almost 3 decade ago in Botswana as CA Enterprises founded by businessman, Jag dish Sha. The now nationalized Motswana went on to acquire then competitors Dafin Sales and Kalahari sales to birth CA Sales & Distribution. In 2011 CA Sales was incorporated as a private company under South African laws.


CA Boss Lewis says going into the last quarter of 2019 and beginning of 2019 the group will continue its expansion by growing its principal and customer networks and making value-adding acquisitions, broadening its footprint further across the African continent. “We expect the challenging economic environment and difficult trading conditions to continue in the midterm, but the group is well positioned with a strong balance sheet and a diverse geographical presence across Southern Africa to cushion subdued markets”. Lewis says their diversified portfolio should enable it to deliver sustainable results for the remainder of the year.

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