Caxton And Ctp Publishers And Printers Limited · JSE:CAT
Caxton And Ctp Publishers And Printers — FY2023 Earnings Presentation
28 slides from Caxton And Ctp Publishers And Printers's earnings presentation, October 2023
Slide 1: Financial Results Year Ended 30 June 2023
Financial Results Year Ended 30 June 2023 October 2023
Slide 2: Company overview
Company overview • Terry Moolman and partners acquired control in 1977. • Major player in the South African print media industry. • One of the largest printers of books, advertising inserts/brochures, diaries, magazines and commercial print jobs. • Prominent regional and local newspaper publishers i
Slide 3: Caxton executive directors
Caxton executive directors Terry D Moolman | Founder and CEO Terry and his partners bought control of Caxton and CTP Publishers and Printers Limited in 1977, with a market capitalization of R260 000, and has been the Chief Executive Officer ever since. Tim JW Holden | MD & FD BCom, CA(SA) Tim joined
Slide 4: Caxton and CTP Printers and Publishers Limited
Caxton and CTP Printers and Publishers Limited Cash and cash equivalents Operations management Major investments and associates Printing, publishing and distribution Packaging and stationary Newspaper Book and Commercial Packaging Stationary publishing magazine printing printing Newspaper publishing
Slide 5: Key business milestones
Key business milestones Acquisition of Cape Litho Acquisition of HP labels Printing (R22m) and J Ryan (R24m) and Boland Printers Labels (R34m) to expand (R78m) to expand the label printing capabilities label packaging Investment in Octotel and capabilities Acquisition of Nampak provide loan capital
Slide 6: Key business milestones
Key business milestones Investment in Mpact Limited (R656,1m), bringing Acquisition of Boxes for shareholding to 31.6% Africa (R25m) to expand packaging capabilities Additional investment in Disposal of investments in Further investment in Investment in Private Cognition Holdings (R90m) Octotel and
Slide 7: Key business milestones
Key business milestones Acquisition of remaining 33% of Capital Media Acquired further 5% of Thebe (R14m) Acquisition of Allflex (Kaya FM), bringing total Acquisition of remaining Packaging (R20,1m) shareholding to 22.6% 50% shareholding in (R8,1m) Mooivaal Media (R8m) Increased shareholding Disposa
Slide 8: Financial review
Financial review For year ended 30 June 2023
Slide 9: A year in review
A year in review A year of two halves Mixed segmental growth Continual investment in growth First half Local newspaper business • R240m gross investment in equipment • Overall strong demand • Strong growth in national retailer to maintain and grow the packaging • Supply constraints and significant a
Slide 10: Ten-year review
Ten-year review 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Revenue (Rm) 6 975 5 979 5 220 5 572 6 321 6 334 6 407 6 405 6 261 5 390 Profit/(Loss) before taxation (Rm) 952 686 739 (47) 452 541 610 590 597 545 Operating profit before depreciation and amortization (EBITDA) (Rm) 981 828 563 350 6
Slide 11: Key financial metrics
Key financial metrics Operating costs increased by R925m to Group revenue of R6,97bn EBITDA up by R153m to R981m R6,2bn 16.6% 17.5% 18.5% Headline earnings of 188.6 cents per Net asset value per share has grown to Cash generated by operating activities share R20.22 after working capital increased by
Slide 12: Key financial trends
Key financial trends Revenue EBITDA HEPS 200 189 180 157 8 000 6 975 1 200 160 6 321 959 140 5 572 5 979 1 000 892 6 000 5 220 120 Cents 800 654 102 611 100 Rm Rm 4 000 600 80 75 357 400 60 2 000 40 200 21 20 - - 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 • Reflect
Slide 13: Key financial trends
Key financial trends Cash on hand Working capital Capex 2 500 3500 350 3000 300 1 989 2 000 1 888 2500 1 743 250 92 1 698 1 664 2000 200 R’m 1 500 1500 6 64 150 84 R’m Rm 1000 60 500 100 181 207 1 000 142 0 50 91 98 2019 2020 2021 2022 2023 -500 - 500 -1000 2019 2020 2021 2022 2023 -1500 - Additions
Slide 14: Group returns
Group returns Profit from operating activities before Net asset value depreciation, amortisation and tax 3 877 1200 000 4 500 3 517 3 345 4 000 3 090 25.3% 2 887 1000 000 3 500 24.7% 3 000 1 990 1 905 800 000 1 888 1 743 1 698 2 500 1 665 R’m 18.6% 1 560 1 531 2 000 R’m 600 000 19.5% 11.3% 1 500 629
Slide 15: Publishing, printing and distribution
Publishing, printing and distribution
Slide 16: Publishing, printing and distribution
Publishing, printing and distribution 49,1% Newspaper Commercial Book and magazine 50,9% publishing printing printing R3 425 R3 548 30 June 2023 30 June 2022 % Revenue 3 426 3 207 6,8% Publishing, printing and distribution Packaging and stationery EBITDA 409 470 -13,0% Profit from operations 297 352
Slide 17: Publishing, printing and distribution: Newspaper publishing
Publishing, printing and distribution Newspaper publishing • A difficult year overall • Advertising inserts from national retailers increased by 7% (mainly grocery and liquor retailers) • Decline in advertising inserts from local businesses. • Continued demand from national retailers that value the
Slide 18: Commercial printing (web and gravure)
Publishing, printing and distribution Commercial printing (web and gravure) • Solid profitability driven by increased throughput(2%) and good cost increase recoveries • Market share gains as a result of beneficial access to paper, various grammage options and consequent pricing advantage • While lar
Slide 19: Book and magazine printing
Publishing, printing and distribution Book and magazine printing • Difficult year resulting in a decline in profitability • Market remains challenging with uncertainty in textbook demand from government departments • Novus Holdings has bought Caxton's largest textbook print customer , Maskew Miller.
Slide 20: Packaging and stationery
Packaging and stationery _
Slide 21: Packaging and stationery
Packaging and stationery 49,1% 50,9% R3 425 Packaging Stationery R3 548 Segment performance Publishing, printing and distribution Packaging and stationery 30 June 30 June 2023 2022 % Revenue 3 549 2 772 28,0% • Another record improvement in profitability with solid EBITDA 528 423 25,0% organic and m
Slide 22: Packaging and stationery
Packaging and stationery Packaging Stationery • Excellent overall results • Excellent revenue growth of 18% • Quick Service Restaurant (QSR) and the Bag in Box • Recovery of offtake by largest customer market volume growth > 13% • Margins maintained despite raw materials cost increases • Sourcing co
Slide 23: Strategy
Strategy
Slide 24: Strategy
Strategy Invest and grow in the packaging Maximise value from publishing, Focused cash management and sector printing and distribution business expeditious capital allocation Identify growth opportunities Simplify and extract value Simplify and extract value Continue to allocate cash through complem
Slide 25: Successful expansion of packaging business through acquisition
Successful expansion of packing business through acquisition, investment in equipment and product development (Revenue Rm) 2020 2021 2022 2023 39,6% 44,0% 46,4% R2 194 49,1% R2 296 R2 772 50,9% 53,6% R3 425 56,0% R3 548 60,4% R2 924 R3 207 R3 350 Packaging and stationery Publishing, printing and dis
Slide 26: Outlook
Outlook
Slide 27: Outlook
Outlook The market Environmentally driven growth opportunities Consumer demand is weakening Take advantage of the increased momentum in movement from plastic packaging to paper and board alternatives • Demand has dropped off in 2nd half of the year and remains mooted Market remains very competitive
Slide 28: Questions
Questions
Caxton and CTP Publishers and Printers — FY2023 Earnings Presentation on 6ix