CA Sales Holdings Limited (CA&S) recently released its audited results for the year ended 31 December 2023, showcasing impressive financial performance and a dividend declaration. As a key player in the fast-moving consumer goods industry in Africa, CA&S’s financial standing and dividend policy are of significant interest to investors and stakeholders.
Financial Performance Highlights
The audited results for 2023 revealed substantial growth for CA&S across key financial metrics. Revenue surged by 19.4% to R11.32 billion, driven by organic growth, acquisitions, and expansion into new regions. This robust revenue growth contributed to a 40.7% increase in operating profit, reaching R747.31 million. Moreover, both headline earnings per share (HEPS) and earnings per share (EPS) demonstrated remarkable growth, with HEPS increasing by 25.3% to 97.97 cents per share and EPS surging by 59.5% to 125.22 cents per share.
Financial Metrics Overview:
| Metric | 2023 Figures | Growth Rate |
|---|---|---|
| Revenue | R11.32 billion | 19.4% |
| Operating Profit | R747.31 million | 40.7% |
| HEPS | 97.97 cents per share | 25.3% |
| EPS | 125.22 cents per share | 59.5% |
Dividend Declaration
CA&S declared a final gross ordinary share cash dividend of 19.56 cents per share for the year ended 31 December 2023. This represents a 27.4% increase from the previous year’s dividend. The dividend is aligned with the company’s policy of maintaining dividends at 20% of headline earnings.
Dividend Timeline:
| Date | Event |
|---|---|
| Wednesday, 27 March 2024 | Declaration of dividend |
| Tuesday, 16 April 2024 | Last day to trade cum dividend |
| Wednesday, 17 April 2024 | Trading ex-dividend commences |
| Friday, 19 April 2024 | Record date |
| Monday, 22 April 2024 | Payment date |
Tax Implications
Shareholders receiving the dividend will face tax implications. The dividends tax rate stands at 20%, resulting in a net dividend of 15.648 cents per share for shareholders not exempt from this tax. It’s advisable for shareholders to seek individual tax advice regarding their specific circumstances.
Strategic Outlook and Growth Initiatives
Despite global economic challenges and persistent inflation, CA&S remains resilient and strategically positioned for growth. With a diversified portfolio, robust balance sheet, and a broad geographical footprint across Africa, the company aims to deliver favourable results in the upcoming year. CA&S’s growth strategy includes expanding services to existing and new clients, channel broadening, geographic expansion, and value-adding acquisitions.
Conclusion
CA Sales Holdings Limited’s financial performance for the year 2023 reflects strong growth and resilience in the face of economic challenges. The dividend declaration underscores the company’s commitment to rewarding shareholders while maintaining a prudent financial strategy. With a clear strategic outlook focused on growth initiatives, CA&S is poised to navigate future market dynamics and deliver value to its stakeholders.
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