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Revenue increased by 22.5% to R5.2 billion to end June, while profit surged 108% to R304.5 million. Photo Towfiqu-barbhuiya/Unsplash
Revenue increased by 22.5% to R5.2 billion to end June, while profit surged 108% to R304.5 million. Photo Towfiqu-barbhuiya/Unsplash

Retail-focused CA&S reports doubling of profit

Helped by new Namibian acquisition
The group acquired T&C Properties Namibia and Taeuber and Corssen SWA for R65 million.
Karl Gernetzky
CA&S Group (CA Sales), which offers merchandising, warehousing and distribution services to fast-moving consumer goods (FMCG) companies, has reported a more than doubling in interim profit after a boost from both new clients, as well as from acquisitions.

Revenue increased by 22.5% to R5.2 billion to end June, while profit surged 108% to R304.5 million, the group said on Monday, helped by a R123.4 million gain-on-bargain purchase for a distribution business in Namibia.

This refers to the fair value of net assets acquired exceeding the purchase price. The group acquired T&C Properties Namibia and Taeuber and Corssen SWA for R65 million, and these had been loss-making for the past few years, with the seller making a strategic decision to exit the Namibian market.

Valued at about R3.7 billion on the JSE, the company was founded in 2012 and offers merchandising, warehousing, distribution and various other services to companies in FMCG. It now has a footprint in several Southern African countries, including Swaziland, Namibia, Lesotho, Zimbabwe, Mozambique, Zambia and Botswana.

The company, which was previously listed on the Cape Town Stock Exchange, shifted its listing to the JSE in June 2022. It also listed in Botswana in 2017 and owns companies like Red Bull Distribution in Zimbabwe and the African distributor for Diageo and Heineken.

Revenue growth was driven by organic growth, acquisitions, expansion into new regions as well as the on-boarding of new clients to the group’s portfolio, CA Sales said.

No dividend was declared, with the company's policy to consider one for year-end, while net cash climbed to R590 million from R459 million.

"We are delighted to announce these strong half-year results, a testament to our unwavering dedication to our clients' success and our commitment to innovation," CEO Duncan Lewis said in a statement. "Despite the ongoing economic complexities, our robust growth strategy has proven effective, resulting in impressive growth across all indicators. We remain focused on delivering value to our clients and all stakeholders as we pursue our growth ambitions."

The group's shares were unchanged on Monday morning, but are up just over a fifth in the year to date.-Fin24

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Allgemeine Zeitung 2024-11-23

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