The Botswana Stock Exchange-listed CA Sales has set its eyes on broadening footprint across Africa.
Announcing financial results for the six months ended in June, CA Sales CEO, Duncan Lewis, said the group will continue its expansion by growing the principal and customer networks thus making value-adding acquisitions.
Currently the group has a diverse geographical presence across Southern Africa and operates in Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe.
“The group is optimistic about the second half of the year as we are moving into peak seasons in the retail sector,” said Lewis.
“The group’s diversified portfolio should enable it to deliver sustainable results for the remainder of the year.”
CA Sales operates within the Fast-Moving Consumer Goods (FMCG) industry and delivers route-to-market services to blue-chip manufacturers. The service offering includes warehousing, distribution, selling, merchandising, shopper marketing, training and debtor’s administration.
Lewis said while it is expected that the challenging economic environment and difficult trading conditions will continue for the time being, the group is well positioned to weather conditions with a strong balance sheet and a diverse geographical presence across Southern Africa.
The sales and
Headline earnings per share increased by a hefty 59.3% compared to the previous year on the corresponding period following a 60.4% increase in headline earnings to R73.3 million.
Revenue increased by 20.6% to over R2.9 billion from R2.4 billion, mostly through organic growth.
Total assets rose by 14.6% to R2.6 billion due to the increase in right-of-use assets in accordance with IFRS16, as well as a significant increase in working capital, mainly due to the increased revenue.
“The results are very pleasing considering the headwinds in some of the territories in which the group’s businesses operate,” added Lewis.
According to Lewis, the growth was underpinned by a good overall performance from all the major operations.
The Botswana operation remains the key contributor to performance with a 58% contribution to revenue. Wutow in Namibia has increased its contribution to earnings despite the region grappling with a declining economy.