CA Sales Holdings (CAA) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 grew 9.2% year-over-year to R5.73bn, driven by volume growth, inflation, acquisitions, regional expansion, and new clients.

• Headline earnings per share rose 19.2% to 43.45 cents, while headline earnings grew 19.7% to R206.83 million.

• Operating profit declined 21.1% to R305m, impacted by a prior period gain on bargain purchase.

• Net asset value per share increased 14.7% to 583.53 cents.

• Net cash resources increased to R777.56 million, supported by strong operating cash flow.

Financial highlights

• Gross profit margin held steady at 15.2%, with gross profit up 10.6% to R870.35 million.

• Free cash flow rose to R344m, up from R259m in H1 2023.

• Adjusted EBITDA rose 14.4% to R358m.

• Operating cash flow improved 28.6% to R409.85 million.

• Net asset value per share: 583.53 cents, up 14.7%.

Outlook and guidance

• Expansion and diversification will continue, leveraging a strong balance sheet for both organic and acquisitive growth.

• Confident in growth prospects in southern and East Africa, supported by economic growth and infrastructure investment.

• Focus on prudent cost management and strategic investments to capitalize on regional opportunities.

• Persistent inflation and unemployment are noted as ongoing challenges.

• No interim dividend declared; annual dividend policy remains.