We have extracted the financial summary from the abridged report of CA Sales Holdings Limited listed on the Botswana Stock Exchange under the share code CAS.bw. CA Sales a local and international service provider to blue chip manufacturers operating withing the FMCG industry.
The following is an excerpt from the abridged report;
CA Sales is pleased to announce its year-end results for the year ended 31 December 2018. Revenue increased by 14.8% to over R5.5 billion from R4.8 billion in the prior year, through a combination of organic and acquisitive growth. In a challenging operating environment, management continued to focus on margin retention, stock management, dynamic service levels and continual cost analysis. This resulted in a double digit increase in gross profit of 14% to R824 million (2017: R723.6 million) and a robust 31% increase in headline earnings to R179.4 million (2017: R136.8 million). This was also supported by the increased shareholding in major subsidiaries towards the end of last year. Headline earnings per share was up 20% to 40.11 cents per share (2017: 33.23 cents).
The group is pleased with the solid results produced by the major operating companies, despite the challenging economic enviroment in Namibia and South Africa. Manufacturers’ below the line marketing spend cuts have however negatively impacted on the marketing and promotional operations.
Goodwill of R90.5 million arising on the acquisition of Expo Africa Group and SMC Namibia has been impaired by R27 million based on the reassessment of the cash-generating units’ future cash flows, negatively impacting earnings per share.
Total assets increased by 22% to R2.5 billion mainly as a result of the acquisition of the land and buildings in Botswana. The bond over these properties increased the group’s debt-to-equity ratio to 36% (2017: 26%).
CA Sales will continue its expansion by growing its principal and customer networks and making value-adding acquisitions, widening its footprint further into new markets. It is expected that the difficult economic environment in certain markets will prevail for the time being. The group is, however, well positioned with a strong balance sheet and a diverse geographical presence across Southern Africa.
The group’s diversified portfolio should enable it to deliver sustainable results in the future.