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CA Sales profits up by 24.3 percent despite tough conditions

Publishing Date : 19 March, 2020

Author : KENNETH MOSEKIEMANG

Southern African spread Fast Moving Consumer Good (FMCG) distribution outfit CA Sales Holdings, which is listed on Botswana Stock Exchange (BSE) trading as CA &S Group has seen its gross profits increase by 24.3%  to hit R1 billion for the just six month ended in December 2019.  

 

The company announced this week the gross profit was attained through after the company delivered excellent operational, efficient stock management and continual cost sharing efficiencies.

 

BSE listed entity which specialises in the fast-moving consumer goods industry saw its revenue increasing by 28.4 percent to a staggering R7.1 billion from R5.5 billion in the prior year, mostly through organic growth.

 

According to CA Sales, the growth was also supported by the increased shareholding in major subsidiaries towards the end of last year. A robust headline earnings per share was up 28.4 percent to 51.31 cents per share compared to 40.11 cents per share in 2018.

 

“Despite head winds in some of the territories in which the businesses operate, the group produced pleasing results. The growth on prior year was underpinned by a good overall performance from all the major operations for the year,” said CA Sales Chief Executive Officer (CEO) Duncan Lewis.

 

“The adoption of the new IFRS16 leases accounting standard did not have a material impact on the group’s results.”

 

Lewis said the Goodwill of R56.9 million arising on the acquisition of SMC Namibia has been impaired by R30 million based on the reassessment of the cash-generating units’ future cash flows.

 

He further indicated that, the impairment has negatively impacted earnings per share with a total assets increased by 22.1% to R3.1 billion mainly as a result of the adjustments from IFRS 16.

 

The CA Executive said 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.

 

He further explained that they expect the challenging economic environment and difficult trading conditions will continue for the time being however he said they are well positioned with a strong balance sheet and a diverse geographical presence across Southern Africa.

 

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.

 

 

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