Ca Sales Holdings (pty) Ltd. · JSE:CAA
Ca Sales Holdings (pty) — CA&S Holdings — H1 2024 Earnings Presentation
46 slides from Ca Sales Holdings (pty)'s earnings presentation, Sep 2, 2024
Slide 1: Interim results six months ended 30 June 2024
Interim results six months ended 30 June 2024
Slide 2: Our Disclaimer
Our Disclaimer 1. This presentation has been prepared by, and is subject to the copyright of, CA&S Group. No part of this presentation may be reproduced, transmitted, stored in a retrieval system, or translated in any other language in any form, by any means without the prior written consent of CA&S
Slide 3: The Agenda
The Agenda Interim Results 2024 2 September 2024 1. Who we are, what we do and why 2. Update on half year results 3. Segmental update 4. Primary statements 5. Journey to 2026 6. Questions
Slide 4: CA&S: Who we are and what we do
CA&S : Who we are and what we do CA&S Group specialises in providing route to market retail solutions, to the owners of the world’s best loved brands, ensuring their products are available, visible and promoted to shoppers across emerging markets.
Slide 5: Our Solutions
Our Solutions Warehousing Retail Execution Retail Support & Technology & & Distribution & Advisory Training Data Solutions Products safely stored, Growing brands by We specialise in Purpose-built increasing market training, empowering maintained and readily share and volume: & motivating work forces
Slide 6: Warehousing and Distribution
Warehousing and Distribution o Unparalleled distribution network with group companies closely collaborating to take brands beyond borders. o Excellent storage solutions and an extensive distribution network = consistent service delivery and peace of mind that products are safely stored, maintained,
Slide 7: Retail Execution and Advisory
Retail Execution and Advisory o Build on-shelf visibility, optimise brand positioning, flow, and shelf health. o Implement category flows and ensure sufficient stock is on hand, readily available, and replenished. o Maintenance of retailer systems, drive sales, taking and placing orders. o Deep loca
Slide 8: Retail Support
Retail Support o Retail support solutions - shopper marketing campaigns and brand activation at the Point of Purchase (POP). o Expertly trained and mentored sales-oriented staff - product education, understanding, and knowledge of unique selling points. o Technically skilled Point of Sale (POS) spec
Slide 9: Technology and Data
Technology and Data Purpose-built and adaptable end-to-end, cloud- based FMCG value chain solutions and platforms. Mobile automation solutions encompassing everything from sales & invoice generation to stock management, settlements, and debtor management, B2B, consumer loyalty and rewards, and integ
Slide 10: Some of Our Clients
Some of Our Clients caé&s reape mark, Heineken aS BE Tiger Brands Cb bgly - Taking Brands oe Mondeléz, Beyond Borders esky OTFANS International SN) DIAGEO ¢> Neste Ge rere memouie Kelloygss Poe @ pEpsico =. & Kimberly-Clark
Slide 11: Our Collective
Our Collective Warehousing & Distribution Retail Support Namibia Botswana Botswana, Zambia South Africa Botswana, Eswatini, Lesotho, Namibia South Africa Zimbabwe Eswatini Retail Execution & Advisory Botswana Zambia Zimbabwe Namibia Eswatini Botswana, Eswatini, Lesotho, Namibia Lesotho Technology &
Slide 12: Our Footprint
Our Footprint Namibia Zambia Botswana Kenya Lesotho Zimbabwe South Africa Eswatini Purpose-built and adaptable end-to-end cloud based FMCG technology and data solutions are provided in a further 16 countries across the continent via Macmobile.
Slide 13: The Opportunity
The Opportunity The informal market in South African townships is vibrant, growing, even thriving in many areas. The informal independent sector (incl. spazas) is estimated to be worth R184bn annually. This represents 26% of the total R716bn SA FMCG market. 1 To put this in perspective, Shoprite Hol
Slide 14: South African informal market solution
South African informal market solution o CA&S Group company Roots Sales o Comprehensive 360° solution incl. sales, merchandising, activations, auditing, last mile fulfillment and analytics o Founded in 2014 o Serving over 12 300 outlets in the informal trade via 177 employees o Community-based recru
Slide 15: East Africa
East Africa Strategy o Grow pipeline with our existing clients and customers o Modern trade is on a growth trajectory across region o Region has favourable GDP forecast Uganda Kenya Rwanda Tanzania Extended Footprint Existing Footprint Zambia Zimbabwe Namibia Botswana Eswatini Lesotho South Africa
Slide 16: Why this footprint
Southern and East Africa optimists Deep local knowledge of these markets Steady economic growth rate + 3% across all markets Fast growing economies Why this Investment in infrastructure, economic footprint diversification and favourable business environment Rural and urban population that requires a
Slide 17: What is our business model?
What is our business model? Provide solutions to brand owners so that people can have access to essential products We are remunerated on our solutions / services – we earn a service fee not a margin on product Focus on emerging markets Management is significant shareholder
Slide 18: South African Economic Report
South African Economic Report South African Key Economic Indicators in a Nutshell – updated to end July 2024 Real GDP Real GDP forecast Total CPI Food CPI At constant prices At constant prices and non-alcoholic beverages June 2024: June 2024: Q1/2024: -0.1% QoQ +5.1% 2024: Q4:+0.3% | Q3: -0.4% | Q2:
Slide 19: How we deliver
How we deliver Good Financial Health: Healthy balance Strategic, invested leadership & sheet, strong operating cashflow for quality workforce: Learn, share & responsible capital allocation. collaborate = better client solutions. 07 01 Culture is key. Operational Efficiency: Solid Broad trade coverag
Slide 20: Margin expansion
Margin expansion Contributions from different areas of the business will evolve Sales & 19% Retail Services 30% Merchandising Today Warehousing 2026 & Distribution 70% Warehousing 81% & Distribution o 81% of revenue originates from Warehousing & o 70% of revenue originates from Warehousing & Distrib
Slide 21: Interim results six months ended 30 June 2024
Interim results six months ended 30 June 2024
Slide 22: Snapshot of the Half Year
Snapshot of the Half Year Headline Net Asset Operating Earnings Adjusted Revenue Earnings Value per Profit per share EBITDA per share share 9.2% (21.1%) (30.7%) 14.4% 19.2% 14.7% R5 728m R305m 43.90 cents R358m 43.45cents 583.53cents (H1 2023: R5 245m) (H1 2023: R387m) (H1 2023: 63.36 cents) (H1 202
Slide 23: Segmental Overview
Segmental Overview
Slide 24: Revenue
Revenue H1 2024 R'000 H1 2024 H1 2023 % Growth FY 2023 3% Botswana 2 852 947 2 641 550 8.0% 5 707 433 15% Eswatini 840 127 759 101 10.7% 1 690 815 18% 50% Namibia 1 005 501 1 031 417 (2.5%) 2 124 829 15% South Africa 874 528 720 209 21.4% 1 532 141 Other countries* 154 809 93 019 66.4% 266 806 H1 20
Slide 25: Botswana
Country Review Financial Performance Botswana R'000 H1 2024 H1 2023 % Growth FY 2023 Revenue 2 852 947 2 641 550 8.0% 5 707 433 EBIT 133 819 107 002 25.1% 269 466 Adjusted EBITDA 148 897 120 876 23.2% 294 392 Total Assets 2 493 832 2 383 269 4.6% 2 572 708 Total Liabilities 1 331 328 1 283 724 3.7%
Slide 26: Eswatini
Country Review Financial Performance Eswatini R'000 H1 2024 H1 2023 % Growth FY 2023 Revenue 840 127 759 101 10.7% 1 690 815 EBIT 71 232 62 895 13.3% 145 353 Adjusted EBITDA 75 094 69 511 8.0% 159 834 Total Assets 567 039 431 525 31.4% 625 643 Total Liabilities 206 241 147 262 40.1% 279 498 Warehous
Slide 27: Namibia
Country Review Financial Performance Namibia R'000 H1 2024 H1 2023 % Growth FY 2023 Revenue 1 005 501 1 031 417 (2.5%) 2 124 829 EBIT 6 364 151 691 (95.8%) 181 716 Adjusted EBITDA 17 307 39 192 (55.8%) 79 770 Total Assets 669 259 702 575 (4.7%) 793 207 Total Liabilities 400 004 456 360 (12.3%) 523 1
Slide 28: South Africa
Country Review Financial Performance South Africa R'000 H1 2024 H1 2023 % Growth FY 2023 Revenue 874 528 720 209 21.4% 1 532 141 EBIT 77 589 60 606 28.0% 150 271 Adjusted EBITDA 95 933 76 488 25.4% 183 381 Total Assets 1 373 865 1 068 171 28.6% 1 222 694 Total Liabilities 370 582 296 732 24.9% 359 3
Slide 29: Other
Country Review Financial Performance Other R'000 H1 2024 H1 2023 % Growth FY 2023 Lesotho, Zimbabwe, Zambia Revenue 154 809 93 019 66.4% 266 806 EBIT 16 246 4 880 >100% 252 Adjusted EBITDA 20 621 6 957 >100% 5 896 Total Assets 177 789 127 712 39.2% 197 089 Total Liabilities 158 156 86 959 81.9% 183
Slide 30: Financial Overview
Financial Overview
Slide 31: Revenue, Operating Profit and Margin (PAT) (%)
Revenue, Operating Profit and Margin (PAT) (%) Revenue Growth: 9.2% Operating Profit: (21.1%) R’000 R’000 12 000 000 800 000 747 312 5.3% 700 000 10 000 000 600 000 8 000 000 500 000 6 000 000 387 049 400 000 3.7% 11 322 024 5.8% 305 376 300 000 4 000 000 5 727 912 200 000 5 245 296 2 000 000 100 00
Slide 32: HEPS growth
HEPS growth Revenue Growth: 9.2% HEPS Growth: 19.2% Cents R’000 120.0 11 322 024 12 000 000 100.0 97.97 10 000 000 80.0 8 000 000 60.0 5 727 912 6 000 000 5 245 296 40.0 43.45 4 000 000 36.45 20.0 2 000 000 0.0 0 H1 2023 H1 2024 FY 2023 Revenue (Rbn) HEPS (Cents)
Slide 33: Income Statement
Income Statement R'000 H1 2024 H1 2023 FY 2023 Revenue 5 727 912 5 245 296 11 322 024 Adjusted EBITDA 357 978 312 999 723 527 Profit after tax 214 772 304 510 604 488 Headline earnings 206 829 172 731 464 819 Headline earnings per share (cents) 43.45 36.45 97.97 Gross Profit Margin 15.2% 15.0% 15.2%
Slide 34: Balance Sheet
Balance Sheet R'000 H1 2024 H1 2023 FY 2023 Non-current Assets 1 505 535 1 344 180 1 360 880 Current Assets 3 520 035 3 202 791 3 791 682 Total Assets 5 025 570 4 546 971 5 152 562 Non-current Liabilities 371 089 327 210 335 708 Current Liabilities 1 839 106 1 777 546 2 083 969 Total Liabilities 2 2
Slide 35: Working capital levels
Working capital levels R'000 Days H12024 Days H1 2023 Days FY2023 Receivables 52 1 645 893 55 1 570 454 55 1 712 494 Inventory 30 811 525 31 765 050 38 990 804 Payables 50 1 328 998 52 1 282 184 50 1 313 966 Net Working Capital 33 1 128 420 33 1 053 320 43 1 389 332
Slide 36: Cashflow
Cashflow R'000 H1 2024 H1 2023 FY 2024 Profit from Operations 334 636 305 035 723 553 Working Capital inflow/(Outflow) 225 125 112 053 (189 819) Tax paid (122 863) (79 995) (134 876) Net Interest 14 636 1 912 11 526 Operational Cash Generated 451 534 339 005 410 384 Net Investments (67 568) (62 262)
Slide 37: Social and natural capital responsibilities
Social and natural capital responsibilities
Slide 38: a ca&s group programme
group a ca&s group programme
Slide 39: ESG Roadmap
ESG Roadmap As part of our ongoing commitment to sustainability, we have formalised sustainability metrics within the group, emphasising environmental and social impacts across our markets. In 2023, we took concrete steps to align all operations with the group’s ESG Natural Capital focus areas, whil
Slide 40: ESG Group Objectives
ESG Group Objectives Environmental Social : Internal Manage our environmental dependencies and impact Improve livelihoods &employee wellbeing o Fuel usage & efficiency o Enhance training & development programmes o Driver behaviour - training across group o Transport software – improve truck utilisat
Slide 41: Sustainability Review
Sustainability Review Human capital Natural capital Manufactured capital Employees Renewable energy Warehouse Space produced Total number of 1 214 MWh 138 738 m2 employees at year end 15 268 Social capital Employees Staff retention trained 84% 7 292 Number of charities supported Contribution to gove
Slide 42: Journey to 2026 – Update
Journey to 2026 – Update
Slide 43: The Journey Toward 2026: The Dream
THE JOURNEY TOWARD 2026… THE DREAM… We may be many businesses but ultimately, we are one team, with one dream… …to reach R20 billion by 2026
Slide 44: Journey to 2026
Journey to 2026 What we prioritise What we leverage Build new business Enable growth of the Business of Create the Business of Complimentary and value adding Today Tomorrow Expand along the value chain o Expand geographical coverage in select o Expand portfolio: drive focused Expand services for exi
Slide 45: Outlook
Outlook o Diversification through expansion drive will continue o Balance sheet and free cash enables both organic and acquisitive growth o Inflation and unemployment remain persistent concerns o Africa has a growing population that continues to require and acquire brands o Growth rates in certain A
Slide 46: Duncan Lewis (CEO) | Frans Reichert (CFO)
Duncan Lewis (CEO) | Frans Reichert (CFO) investor@cas.group