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CA SALES HOLDINGS LIMITED - Unaudited Results For The Six Months Ended 30 June 2024

Release Date: 02/09/2024 09:00
Code(s): CAA     PDF:  
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Unaudited Results For The Six Months Ended 30 June 2024

CA SALES HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 2011/143100/06
Registered as an external company in the Republic of Botswana
Botswana registration number: BW00001085331
JSE Limited ("JSE") share code: CAA
Botswana Stock Exchange ("BSE") share code: CAS-EQO
ISIN: ZAE400000036
("CA&S" or "the Company" or "the group")

UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024

1.   NATURE OF BUSINESS

     CA&S is a collective of fully integrated fast-moving consumer goods businesses operating
     in Africa. We offer route-to-market solutions for some of the world's most-loved consumer
     brands.

     The group collaborates with clients, delivering brands across borders and navigating the
     supply chain to reach stores, shelves, baskets and trollies. We ensure availability and
     visibility to African shoppers, including promoting these brands. Working closely with
     clients, we address trade obstacles, enhance shelf presence and safeguard market
     shares.

     CA&S operates in several southern and East African countries. (Botswana, Eswatini,
     Lesotho, Mauritius, Namibia, South Africa, Zambia, Zimbabwe) Our service solutions
     include selling and distributing fast-moving consumer goods, as well as services such as
     retail execution and advisory, retail support, technology and data solutions, and training.

2.   SALIENT FEATURES

     Revenue growth was driven by sales volume increases, inflation, acquisitions, expansion
     into new regions, and the on-boarding of new clients to the group's portfolio.

     Revenue increased by 9.2% to R5.73 billion, from R5.25 billion in the prior corresponding
     period.

     Headline earnings per share ("HEPS") increased by 19.2% to 43.45 cents per share, from
     36.45 cents per share in the prior corresponding period.

     Operating profit decreased by 21.1% to R305.38 million, from R387.05 million in the prior
     corresponding period.

     Earnings per share ("EPS") decreased by 30.7% to 43.90 cents per share, from 63.36
     cents per share in the prior corresponding period.

     Operating profit and EPS decreased as a result of a gain on bargain purchase entry of
     R123.57 million in the prior year resulting from the acquisition of the T&C Group in
     Namibia. Excluding the gain on bargain purchase in the prior year, EPS shows an
     increase more in line with the HEPS increase.

     Total assets increased by 10.5% to R5.03 billion due to the increase in fixed, mainly the
     expansion of warehouse capacity, as well as cash and working capital to support the
     increased revenue.
     No dividend has been declared for the six months ended 30 June 2024 (H1 2023: nil), as
     it is the Company's policy to only declare dividends once a year, after its year-end.

3.   OUTLOOK

     We remain confident of the opportunities southern and East Africa present. A deep
     understanding of these markets assists us to navigate the associated risks. With a steady
     economic growth rate averaging at 3% across most markets, these regions boast fast-
     growing economies. Investments in infrastructure, economic diversification and a
     favourable business environment further contribute to their allure. Additionally, the
     presence of both rural and urban populations underscores the demand for access to
     consumer packaged brands, highlighting the region's potential for sustained growth and
     development.

     While we acknowledge the instability of the global economy and persistent disruptions in
     supply chains, we are confident we will continue to deliver on our objectives. Our
     confidence stems from our resilient businesses across multiple jurisdictions, that support
     products that shoppers require regardless of economic fluctuations, our balanced portfolio
     of service solutions, having a healthy balance sheet and the dedication of our leadership
     team and workforce.

     We are mindful of the challenges related to cost management and the critical importance
     of strategic investments. By exercising prudent financial management, we are well-
     positioned to take advantage of opportunities that contribute to the enduring success of
     CA&S.

4.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the Company. It
     contains only a summary of the information in the full announcement
     ("Full Announcement") and does not contain full or complete details. The Full
     Announcement can be found at:
     https://senspdf.jse.co.za/documents/2024/JSE/ISSE/CAAE/CAAHY24.pdf

     A copy of the Full Announcement is also available for viewing on the Company's website
     at: https://casholdings.co.za/investor-relations/

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.

     These interim results have not been audited, reviewed or reported on by the Company's
     auditors.

     Centurion
     2 September 2024

     JSE Sponsor
     PSG Capital

     BSE Sponsoring Broker
     Imara Capital Securities

Date: 02-09-2024 09:00:00
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