Caxton And Ctp Publishers And Printers Limited · JSE:CAT
Caxton And Ctp Publishers And Printers — FY2024 Earnings Presentation
27 slides from Caxton And Ctp Publishers And Printers's earnings presentation, October 2024
Slide 1: Financial Results Year Ended 30 June 2024
Financial Results Year Ended 30 June 2024 October 2024
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 Chief Executive Officer 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|Managing Direct
Slide 4: Caxton and CTP Printers and Publishers Limited
Caxton and CTP Printers and Publishers Limited Operations management Major investments and associates Cash and cash equivalents Printing, publishing and distribution Packaging and stationary Newspaper Book and Commercial Packaging Stationary publishing magazine printing 33.4% (Kaya FM) Sold Aug 2023
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 Acquired minority shareholding and delisted – Acquisition 100% subsidiary (R61m) of remaining 33% of Capital Media Acquisition of Acquisition of (R14m) Allflex Packaging remaining 50% (R20,1m) shareholding in Acquired further 5% of Thebe Mooivaal Media (Kaya FM), bringing tot
Slide 8: Financial review (for year ended 30 June 2024)
Financial review (for year ended 30 June 2024)
Slide 9: A year in review
A year in review Challenging trading conditions Impact on operating segments Outlook / investments • High inflation Local newspaper business • Gross investments of R 267m in • Muted economic growth • National advertising media spend equipment • Depressed consumer activity declined 4% - mainly in pac
Slide 10: Ten-year review
Ten-year review 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Revenue (Rm) 6 647 6 975 5 979 5 220 5 572 6 321 6 334 6 407 6 405 6 261 Profit/(Loss) before taxation (Rm) 838 952 686 739 (47) 452 541 610 590 597 Operating profit before depreciation and amortisation (EBITDA) (Rm) 927 981 828 563 3
Slide 11: Key financial metrics
Key financial metrics Group revenue of R6,64bn, down Operating costs declined by R253m to EBITDA down by R54m to R927m R328m R5,96bn 4.7% 4.1% 5.5% Headline earnings of 196.1 cents per Net asset value per share has grown to Cash generated by operating activities share R21.62 after working capital in
Slide 12: Key financial trends
Key financial trends Revenue EBITDA HEPS 8 000 1 200 250 6 975 7 000 6 647 981 1 000 927 196 5 979 200 189 6 000 5 572 828 5 220 157 800 5 000 150 Cents 563 Rm Rm 4 000 600 3 000 100 350 75 400 2 000 50 200 21 1 000 - - 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 • D
Slide 13: Key financial trends
Key financial trends Cash on hand Working capital Capex 3 000 350 3500 2 506 3000 300 2 500 2500 92 250 48 1 989 2000 2 000 1 888 1 743 1500 200 1 664 Rm 64 Rm 1000 Rm 1 500 150 84 500 60 100 207 219 1 000 0 2020 2021 2022 2023 2024 142 -500 50 91 98 500 -1000 -1500 - 2020 2021 2022 2023 2024 - Acco
Slide 14: Group returns
Group returns Profit from operating activities before Net asset value depreciation, amortisation and tax 1 200 000 4 500 000 4 000 000 3 877 25.3% 3 720 1 000 000 24.9% 3 500 000 3 345 24.7% 3 090 3 000 000 2 887 800 000 2 506 2 500 000 Rm 19.5% 1 990 Rm 600 000 1 905 1 888 2 000 000 1 743 1 560 1 6
Slide 15: Publishing, printing and distribution
Publishing, printing and distribution
Slide 16: Publishing, printing and distribution
Publishing, printing and distribution 55,7% 44,3% Newspaper Commercial Book and magazine publishing printing printing R 3 701 R 2 947 30 June 2024 30 June 2023 % Revenue 2 947 3 426 -14,0% Publishing, printing and Distribution Packaging and Stationery EBITDA 343 409 -16,1% Profit from operations 242
Slide 17: Publishing, printing and distribution
Publishing, printing and distribution Newspaper publishing • Difficult trading conditions continue • Reversal of prior year trends, with media spend from national retailers declining 4% • Local advertising spend continues to decline, mainly driven by the greater Johannesburg region • Spend by grocer
Slide 18: Publishing, printing and distribution
Publishing, printing and distribution Commercial and newspaper printing • Difficult year with overall tonnage throughput declining by 6.5% • Newspaper printing volumes increased by 7% offset by 18% decline in commercial printing volumes • Customer reducing paginations and looking for cheaper paper o
Slide 19: Publishing, printing and distribution
Publishing, printing and distribution Book and magazine printing • Revenues continue to decline on the back of lower demand from educational book printing as well as declining print orders in the magazine market • Further realignment of cost structures was undertaken • Diary and commercial catalogue
Slide 20: Packaging and stationery
Packaging and stationery
Slide 21: Packaging and stationery
Packaging and stationery 55,7% 44,3% Packaging Stationery R 3 701 R 2 947 Segment performance 30 June 2024 30 June 2023 % Publishing, printing and Distribution Packaging and Stationery Revenue 3 701 3 549 4,3% • The importance of this segment continues to grow EBITDA 492 528 -6,9% representing 55.7%
Slide 22: Packaging and stationery
Packaging and stationery Packaging Stationery • Solid results in difficult trading conditions • Revenues continue to grow - 7% • The QSR and Bag-in-Box volumes declined from the previous • Excellent growth in Flip File during the back-to-school period record year • Purchased Tidy Files brand and ass
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 packing business through acquisition, investment in equipment and product development
Successful expansion of packing business through acquisition, investment in equipment and product development (Revenue Rm) 2021 2022 2023 2024 44,0% 46,4% 50,9% 55,7% R2 296 R2 772 R3 548 R 3 701 53,6% 44,3% 56,0% 49,1% R3 207 R3 425 R 2 947 R2 924 Packaging and stationery Publishing, printing and d
Slide 26: Outlook
Outlook Say FNP
Slide 27: Outlook
Outlook The market Growth opportunities Consumer demand Beverage packaging • Cautiously optimistic that with declining interest rates, improved • Concluded supply agreement with global partner to supply demand should follow breweries with carton packing commencing 2025 Market Paper labels • Remains
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