- Interim results to June 30 show a well-positioned with a strong balance sheet, a diverse geographical presence and as a diversified portfolio
Fast-moving consumer goods services group CA Sales Holdings has revealed that improved trading conditions during the first half of 2022 contributed to the massive growth of the company, which recorded a 20 percent increase in revenue.
“The trading environment improved during the first half of 2022, compared to the first half of the prior year, which was negatively impacted by trading restrictions. “This improvement, as well as the on-boarding of new clients, contributed to the growth during this period,” the company, which trades as CA&S Group, says in its consolidated interim financial statements for the six months ended 30 June 2022.
The report says the satisfying half-year results are against the background of a positive trading environment with revenue growth of 20 percent to R4.3 billion on the prior interim period (R3.6 billion in the first half of 2021) driven by sales volume increases. Gross profit increased by 25 percent to R625.2 million due to a change in the category mix while overheads increased by 16 percent on the prior corresponding period.
“Over and above inflation, this increase included the significant increases in fuel prices across all of the regions, over the last six months,” the company notes. According to the report, the positive trading environment coupled with managing cost increases, contributed to the increase of 47 percent in operating profit for the group to R215.0 million compared to R146.5 million in the comparative period in 2021.
Headline earnings for the company increased by 46 percent to R138.4 million with headline earnings per share going up by 44 percent to 30.0 cents per share from 20.8 cents per share in 2021. Earnings per share increased by 56 percent to 30.3 cents (19.4 cents in 2021). Its total assets increased by 17 percent to R3.7 billion due to an increase in fixed and intangible assets as well as working capital. The strong cash flow generated from operations contributed to a healthy increase in net cash resources from R374.2 million at 30 June 2021 to R459.4 million at 30 June 2022.
“The group also acquired an additional sales and merchandising business based in South Africa as part of its channel broadening strategy,” says the report. “This transaction gave rise to intangible assets of R36 million.” The report notes that increased geopolitical risks because of the protracted conflict between Russia and Ukraine adversely affected global economic conditions, which resulted in rising fuel and other commodity prices as well as scarcity of certain raw materials.
“Global inflation and the challenging economic environment are expected to continue for the foreseeable future,” it says. “However, the group is well positioned with its strong balance sheet and a diverse geographical presence as well as a diversified portfolio, which should continue to enable it to deliver good results for the remainder of the financial year.” CA&S is a well-established fast-moving consumer goods (FMCG) service provider offering retail solutions to businesses that operate across southern Africa through route to market services to prominent multinational companies, as well as local brand owners and manufacturers.