CA Sales’ full-year headline earnings rose by a quarter as the group benefited from recent organic growth, acquisitions and expansion into new regions.
The group, which offers services from distribution and warehousing to marketing and in-store promotions for fast-moving consumer goods, reported headline earnings per share (HEPS) of 122.71c for the year ended December, up 25.3%.
Revenue increased 10.6% to R12.52bn, with operating profit rising 4.7% to R782.57m.
Operating profit increased only marginally as a result of a one-off gain on the bargain purchase entry of R123.57m in the prior year, resulting from the acquisition of the T&C Group in Namibia.
Profit for the year rose to R620.8m from R604.5m before. CA Sales declared a final dividend per share of 24.44c, up 24.9% from the previous year.
CA Sales’ clients include AB InBev, Coca-Cola, PepsiCo, Heineken, Tiger Brands, Unilever and Nando’s.
During the year the group acquired 49% of Roots Sales for R70m as part of its strategy to broaden channels. Roots’ services include sales, merchandising and delivery solutions in the informal market in SA.
CA Sales also acquired the remaining share capital of the Macmobile Group for R37.65m, settled in cash and shares. Macmobile provides IT and data solutions to the formal retail sector and merchants in the informal market in the fast-moving consumer goods sector. The transaction resulted in goodwill of R29.2m and other intangible assets of R40.39m.
The group said it remained confident about the opportunities presented in Southern and East Africa, where a deep understanding of these markets assisted it to navigate the associated risks.
“With a steady economic growth rate averaging at 3% across most markets, these regions boast growing economies. Investments in infrastructure, economic diversification and a favourable business environment further contribute to their appeal,” it said.
The presence of both rural and growing urban populations underscored the demand for access to consumer-packaged brands, highlighting the region’s potential for sustained growth and development, CA Sales said.
While the group acknowledged the instability of the global economy and persistent disruptions in supply chains, it was confident in its resilient businesses across multiple jurisdictions, which supported products that shoppers required, regardless of economic fluctuations.
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