Merchandising giant CA Sales has reported a profit after tax of R46 million, from R32 million that was registered last year for the six month period.
CA Sales, which specialises in the Fast Moving Consumer Goods, recorded a 28 percent increase in revenue for the half year period ended 30 June 2018. Revenue for the period is R2.4 billion, up from R1.9 billion in the prior interim period, with the growth achieved through a combination of organic and acquisitive measures.
“In a challenging operating environment, management continued to focus on margin retention, stock management, dynamic service levels and continual cost analysis,” the company said in a statement.
The Botswana Stock Exchange (BSE) listed company says this resulted in a healthy increase in gross profit of 23 percent to R382.4 million and a robust 44 percent increase in headline earnings to R45.7 million.
This also reported to have been supported by the increased shareholding in major subsidiaries towards the end of last year.
Headline earnings per share went up 30 percent to 10.25 cents per share from 7.83 cents in the previous corresponding period.
Despite the volatile trading environment in which the businesses operate, the group announced that it is pleased with the good results produced by the major operating companies.
“Manufacturers’ below the line marketing spend cuts have negatively impacted on the marketing and promotional operations and tough trading conditions prevailed in Namibia,” the group said.
Following the acquisition of a warehouse in Botswana at the end of June this year, the group’s total assets increased by 10 percent to R2.3 billion.
In terms of future strategy, the group says it will continue its expansion by growing its principal and customer networks and making value-adding acquisitions, widening its footprint further across the African continent.
With the challenging economic environment and difficult trading conditions expected to prevail for the time being, the group says it is well positioned with a strong balance sheet and a diverse geographical presence across Southern Africa.
The group has a diverse geographical presence across Southern Africa operating in Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe.