When most companies are struggling to survive the effects of Corona Virus Disease (COVID-19) pandemic, CA sales shareholders are smiling all the way to the bank as the Company won big during the pandemic.
According to the Group chairman, JA Holtzhausen, the Company thrived thanks to the governments considering their businesses essential services, which meant while many closed down, CA sales could continue trading during the lockdown period.
“We were able to report sales growth of 11.2% for the year under these circumstances. Even though well below the original budgeted growth, it was still a pleasing result.Our other businesses that are in the liquor industry as well as promotions and training, were impacted by the trading restrictions. Being in multiple territories assisted in softening the impact as the different territories implemented restriction at different times and to variable extent. The months of April and May during quarter two were severely impacted by the alcohol trading restrictions and the group posted double digit sales declines on the prior year during those months. When the lockdown and trade restrictions lifted, the increased demand in the following months resulted in the full year sales growth. Due to travelling and other restrictions the group was able to extract savings on overheads, assisting in the preservation of profits. Due to the restrictions on the alcohol trade, we have experienced some stock write-offs due to expired stock in our warehouses as well as in the trade.” Holtzhausen declared.
Holtzhausen has further stated that the group is confident and not bothered by the pandemic’s aftermath. “The group has a strong balance sheet and is therefore not concerned about continuing as a going concern and do not foresee any liquidity constraints in the short- to medium-term.” according to the chairman.
The Group has recorded a profit before tax of Three hundred and fifty-three Million and Sixty thousand Rands (R353 060 000)- approximately Two hundred and seventy million pula (P270 million) in a year ended December 2020. In the year ended December 2019, the group recorded profit before tax of Three hundred and Thirty-four million, Two hundred and Thirty-two thousand Rands (R334 332 00) which is roughly Two hundred and fifty-five million pula (P255 million).
It’s is in this light that the group declared a dividends of Ten Rands, and Twenty-six cents (10.26 cents) per share on 19 March 2021.
CA sales, an entity of a collective of fast-moving consumer goods (FMCG) service businesses operates across the Southern African region, offers a route-to-market service to blue-chip manufacturers. CA sales operates in Botswana, South Africa, Namibia, Zambia, Zimbabwe, Lesotho, Eswatini and Mozambique. Despite the small population, Botswana makes good money for the Group. According to the Group’s financial statement, Botswana contributes Fifty-Seven percent (57%) of the total revenue, followed by South Africa and Namibia with Fifteen percent (15%) and Fourteen percent (14%) respectively.