Ca Sales Holdings (pty) Ltd. · JSE:CAA
Ca Sales Holdings (pty) — CA&S Holdings — FY2023 Earnings Presentation
40 slides from Ca Sales Holdings (pty)'s earnings presentation, Mar 27, 2024
Slide 1: Investor Presentation | Full Year Results 2023
Investor Presentation | Full Year Results 2023
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 Full Year Results 2023 27 March 2024 1. Who we are, what we do and why 2. Update on full year results 3. Segmental update 4. Primary statements 5. Journey to 2026 6. Questions
Slide 4: CA&S: Who we are, what we do and why
CA&S : Who we are, what we do and why We are a provider of retail solutions to owners of the world’s best loved brands, specialising in providing route-to-market solutions in emerging markets. We are solutions driven, focused on ensuring on-shelf availability and not only distribution services. We e
Slide 5: Our Solutions
Our Solutions Warehousing & Distribution Retail Support & Training Products safely stored, maintained and We specialise in training, empowering readily available for distribution through & motivating work forces to improve our unrivalled distribution network productivity tailored for each market and
Slide 6: Warehousing and Distribution
Warehousing and Distribution Unparalleled distribution network with group companies closely collaborating to take brands beyond borders. Excellent storage solutions and an extensive distribution network = consistent service delivery and peace of mind that products are safely stored, maintained, and
Slide 7: Retail Execution and Advisory
Retail Execution and Advisory Build on-shelf visibility, optimize brand positioning, flow, and shelf health. Implement category flows and ensure sufficient stock is on hand, readily available, and replenished. Maintenance of retailer systems, drive sales, taking and placing orders. Deep local channe
Slide 8: Retail Support
Retail Support Retail support solutions - shopper marketing campaigns and brand activation at the Point of Purchase (POP). Expertly trained and mentored sales-oriented staff - product education, understanding, and knowledge of unique selling points. Technically skilled Point of Sale (POS) specialist
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 integr
Slide 10: Our Collective
Our Collective Warehousing & Distribution Retail Support Botswana Botswana, Zambia South Africa Namibia Eswatini Botswana, Eswatini, Lesotho, Namibia Retail Execution & Advisory Botswana Zambia Botswana Technology & Data Solutions Namibia Eswatini Zambia Botswana, Eswatini, Lesotho, Namibia 16 count
Slide 11: 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 12: 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 13: Some of Our Clients
Some of Our Clients DIAGEO baled PIONEER 3 Kimberly-Clark FOODS Mondeléz International oad CP COLGATE-PALMOLIVE Tiger Brands ; Hei neken 8 PEPSICO
Slide 14: Our drivers
Our drivers Performance Attained driven by Meticulous through diligent organic growth, execution as collaboration with acquisitions and a solutions clients and expansion into provider their brands new regions Partner with clients to take their brands beyond borders, ensuring they are available, visi
Slide 15: What is our business model?
What is our business model? Why we are an attractive investment: 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
Slide 16: How we constantly deliver
How we constantly deliver o Stable management team that learns, o Customer relationships combined with shares & collaborates - driving better regional connectivity and shared collective client solutions expertise give the CA&S Group a powerful and unmatched competitive advantage in o Businesses in t
Slide 17: Margin expansion
Margin expansion Contributions from different areas of the business will evolve Sales & 15% Retail Services 30% Merchandising Today 2026 70% Warehousing Warehousing 85% & Distribution & Distribution o 85% of revenue originates from Warehousing & o 70% of revenue originates from Warehousing & Distrib
Slide 18: Financial Overview
Financial Overview
Slide 19: Highlights for the Full Year 2023
Highlights for the Full Year 2023 Net Asset Revenue Operating Headline HEPS Dividend Value per Profit Earnings Declared Share 19.4% 40.7% 28.0% 25.3% 27.4% 25.3% R11.3 bn R747.3m R464.8m 97.97 cents 19.56 cents 569.3 cents (FY 2022: R9.5bn) (FY 2022: 531.1m) (FY 2022: R363.2m) (FY 2022: 78.21 cents)
Slide 20: Revenue, Operating Profit and Margin
Revenue (Rbn), Operating Profit (Rm) and Margin (PAT) (%) Revenue Growth: 19.4% Operating Profit Growth: 40.7% R’bn R’m 11,5 747.3 800,0 5.3% 700,0 11,0 600,0 11.3 10,5 531.0 500,0 10,0 400,0 300,0 9,5 4.0% 9.5 200,0 9,0 100,0 8,5 0,0 FY2022 FY2023 • Margin(PAT) Revenue Operating Profit
Slide 21: HEPS (cents)
HEPS (cents) Revenue Growth: 19.4% HEPS Growth: 25.3% Cents R’bn 120,0 11,5 100,0 97.97 11,0 80,0 78.21 11.3 10,5 60,0 10,0 40,0 9,5 9.5 20,0 9,0 0,0 8,5 FY 2022 FY 2023 Revenue (Rbn) HEPS (Cents)
Slide 22: Segmental Overview
Segmental Overview
Slide 23: Revenue
Revenue FY 2023 2% 14% R'000 FY 2023 FY 2022 % Growth Botswana 5 707 433 5 131 061 11.2% 19% 50% Eswatini 1 690 815 1 451 095 16.5% 15% Namibia 2 124 829 1 413 194 50.4% FY 2022 South Africa 1 532 141 1 374 252 11.5% 1% Other countries 266 806 115 759 >100% 15% 15% 54% 15% Botswana Eswatini Namibia
Slide 24: Botswana
Country Review Financial Performance Botswana R'000 FY 2023 FY 2022 % Growth Revenue 5 707 433 5 131 061 11.2% EBIT 269 466 224 081 20.3% Adjusted EBITDA 294 392 246 828 19.3% Total Assets 2 572 708 2 253 596 14.2% Total Liabilities 1 333 238 1 172 876 13.7% Warehousing & Distribution Retail Executi
Slide 25: Eswatini
Country Review Financial Performance Eswatini R'000 FY 2023 FY 2022 % Growth Revenue 1 690 815 1 451 095 16.5% EBIT 145 353 108 626 33.8% Adjusted EBITDA 159 834 122 643 30.3% Total Assets 625 643 467 924 33.7% Warehousing & Total Liabilities 279 498 149 748 86.6% Distribution Retail Execution & Adv
Slide 26: Namibia
Country Review Financial Performance Namibia R'000 FY 2023 FY 2022 % Growth Revenue 2 124 829 1 413 194 50.4% EBIT 181 716 43 999 >100% Adjusted EBITDA 79 770 60 146 32.6% Total Assets 793 207 407 714 94.5% Warehousing & Total Liabilities 523 131 301 888 73.3% Distribution Retail Execution & Advisor
Slide 27: South Africa
Country Review Financial Performance South Africa R'000 FY 2023 FY 2022 % Growth Revenue 1 532 141 1 374 252 11.5% EBIT 150 271 144 494 4.0% Adjusted EBITDA 183 381 174 141 5.3% Total Assets 1 222 694 944 110 29.5% Total Liabilities 359 386 298 520 20.4% Segmental Highlights o Acquired MarketMax - d
Slide 28: Other
Country Review Financial Performance Other R'000 FY 2023 FY 2022 % Growth Lesotho, Zimbabwe, Zambia Revenue 266 806 115 759 >100% EBIT 252 9 982 -97.5% Adjusted EBITDA 5 896 13 229 -55.4% Total Assets 197 089 102 903 91.5% Total Liabilities 183 203 78 322 133.9% Warehousing & Distribution Segmental
Slide 29: Primary Statements
Primary Statements
Slide 30: Income Statement
Income Statement R'000 FY 2023 FY 2022 Revenue 11 322 024 9 485 361 Adjusted EBITDA 723 527 616 876 Profit after tax 604 488 378 596 Headline earnings 464 819 363 194 Headline earnings per share (cents) 97.97 78.21
Slide 31: Balance Sheet
Balance Sheet R'000 FY 2023 FY 2022 Non-current Assets 1 360 880 1 207 317 Current Assets 3 791 682 2 883 289 Total Assets 5 152 562 4 090 606 Non-current Liabilities 335 708 331 161 Current Liabilities 2 083 969 1 584 552 Total Liabilities 2 419 677 1 915 713 Total Equity 2 732 885 2 174 893 Curren
Slide 32: Working capital levels
Working capital levels R'000 Days FY 2023 Days FY 2022 Receivables 51 1 712 494 46 1 382 839 Inventory 35 990 804 31 759 838 Payables 47 1 313 966 42 1 039 767 Net Working Capital 39 1 389 332 35 1 102 910
Slide 33: Cashflow
Cashflow R'000 FY 2023 FY 2022 Profit from Operations 723 553 608 213 Working Capital (189 819) (149 898) Tax paid (134 876) (148 405) Net Interest 11 526 (12 761) Operational Cash Generated 410 384 297 149 Net Investments (68 718) (3 540) Net Capex (50 376) (41 726) Free Cash Flow 291 290 251 883 A
Slide 34: Journey to 2026 – Update
Journey to 2026 – Update
Slide 35: 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 36: 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 37: Our business is on track
Our business is on track 2019 Revenue: R7.1 bn PAT: R208.3 m Net Margin: 2.9% 2020 Revenue: R7.9 bn PAT: R230.6 m Net Margin: 2.9% 2021 Revenue: R8.0 bn PAT: R284.0 m Net Margin: 3.5% 19.4% Revenue increase Revenue2023 Increase FY 2022 Revenue: R9.5 bn PAT: R378.6 m Net Margin: 4.0% 2023 Revenue: R1
Slide 38: 5-year Growth Plan
5-year Growth Plan R20.0 19.4 R? % 18% R? 1.2% R 11.3 R9.5 11% R8.0 R7.9 R7.1 2019 2020 2021 2022 2023 2024 2025 2026 R bn
Slide 39: 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 40: Duncan Lewis, CEO | Frans Reichert, CFO
Duncan Lewis, CEO | Frans Reichert, CFO investor@cas.group