CA Sales Holdings Limited ( CA& S group) is determined to expand its services across the southern African region as the trading conditions have improved.

The group Managing Director, Duncan Lewis stated that the improved trading environment, compared to the prior year’s restrictions, and coupled with managing cost increases enabled the company to record 32.4 percent increase in operating profit to R531.1 million. “This is the result of an improved trading environment as well as the successful on boarding of new clients.”

During the year, the group acquired an additional in- store execution business based in South Africa, as part of its channel broadening strategy. The transaction gave rise to intangible assets of R24.6 million. Revenue increased by 18.2 percent to R9.5 billion from the R8 billion recorded on the prior year. Lewis explained that revenue growth was driven by inflation and volume increases as well as the on boarding of new clients to the group’s portfolio. “Overheads increased by 19.4 percent on the prior year. Over and above inflation, this increase included the significant increases in fuel and energy prices across all of the regions, over the past year.”

The group also increased its shareholding in Promexs Limited in Zambia and Smithshine Enterprises Proprietary Limited in Botswana for a combined cash consideration of R8.2 million. It also increased its shareholding to 100 percent, in Logico Unlimited Proprietary Limited in Eswatini, by issuing equity to the value of R52.3 million. The group also acquired a group of companies, including its properties, known as the T& C Group, in Namibia this year. However, the group anticipates the challenging economic environment and rising inflation to continue across the globe and into the foreseeable future. Lewis highlighted that, in spite of that, 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 year ahead. “A focus will be on channel broadening across existing businesses within existing geographies. Where feasible, the group will also grow its client and customer networks and make value- adding acquisitions.” The group’s services include warehousing and distribution, retail execution and advisory, retail support, training, and technology and data solutions across four countries including Botswana, South Africa, Namibia and Eswatini.