Caxton and CTP Publishers continues to see growth in its packaging and stationery business, which is working to offset some of the declines seen in its publishing, printing and distribution unit.
The company, valued at R4.37bn on JSE, continues to publish a host of community newspapers and the national daily The Citizen, but in recent years it has branched out into packaging, digital assets and stationery.
Caxton, now a major investor in listed packaging business Mpact, has made it clear that it sees promise in this niche, with packaging and stationery accounting for the biggest share of operating profit.
On Friday the group reported its various packaging operations “continue to deliver good results in tough and competitive markets” which is “testament to the group’s capital investments as well as the operational management and employees”.
In the year to end-June group revenue was up 0.9% to R6.907bn. Of this, packaging and stationery accounted for 56%, or R3.736bn, with the balance coming from publishing, printing and distribution.
However, group profit after tax fell 9.1% to R597.8m due to impairments which rose to R50.8m from R18.4m a year earlier. These related to related to the closure of a digital business (R5.3m), impairment of assets at the Durban gravure printing operation and equipment that is no longer in use or been replaced with newer technology.
Normalised headline earnings per share, excluding a once off insurance receipt, were up 12% to 178.9c.
The group said its long-run beer label unit delivered a solid performance especially in the light of the volumes lost during the tender with the country’s largest brewer. The effect of this loss was felt more acutely in the second half as the volumes fully migrated to a competitor.
Short- and medium-run labels, in the Western Cape, delivered good results with growth driven by spirits, cider, and beverage markets, while the wine label market was flat. Cigarette packaging delivered mixed results as traditional lines declined while new products grew.
In stationery, the unit was boosted by the successful acquisition and integration of Tidy Files, effective from August 2024. The traditional stationery business faced a muted back-to-school season but managed to maintain margins and keep costs in check.
In newspaper publishing and printing, national advertising revenue continued to fall, ending the year 3% below the prior year. The group said grocery retailers “continue to dominate the profile of our customers and delivered strong growth over the prior year but this was offset by declines in the home improvement, electronics and furniture markets”.
In book and magazine printing the group reported a difficult trading environment as the effect of the loss of the Media24 magazine volumes took effect.
At the halfway stage, Caxton said the sale of Media24’s newspaper distributor to Novus in 2024 had begun to weigh on its operations with distribution costing it more after the transaction.
In October 2024, competition authorities approved Novus’ bid to acquire Media24’s media logistics and community newspaper portfolio, with conditions.
The deal was the result of a strategic shift that put 400 jobs at risk as Media24 announced earlier in the year that it was seeking to close the print editions of five newspapers, transitioning three of them into digital-only brands. The move also saw two of SA’s best-known magazine publications, Drum and True Love, being shut down.
Cash and cash equivalents of R3.025bn showed an increase of R519.1m.
By market close Caxton’s share price had gained the most in a year, having gained 5.56% to R12.35. The stock is up 1.2% so far this year.
Update: September 14 2025
This story contains more information on group profit.
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