Caxton & CTP: Record Profits in 2023

  • Caxton & CTP Publishers & Printers Ltd reports record profits for 2023, with operating activities up by 25.8%.
  • Revenue shows strong growth, rising 16.6%, driven by price increases and increased volumes in the packaging sector.
  • Effective cost management and strategic investments contribute to the company's impressive financial performance and resilience in challenging conditions.

Caxton & CTP Publishers & Printers Ltd, a well-known name in the South African publishing and printing industry, has just released its annual financial results for the year ending June 30, 2023. The company is celebrating a remarkable year, marked by significant increases in profits and earnings.

Impressive Financial Highlights

The financial report showcases impressive figures across the board. Profit from operating activities soared by a remarkable 25.8%, reaching R742.4 million, a testament to the company’s sound financial strategies and operational excellence.

Earnings per share (EPS) experienced a substantial surge, up by 34.4% from 151.2 cents to 203.3 cents, while headline earnings per share (HEPS) increased by 20.2% from 157.0 cents to 188.6 cents. Shareholders are likely to be delighted with this substantial growth.

Robust Revenue Growth

Caxton & CTP’s revenue for the year showed impressive growth, rising by a substantial 16.6% from R5,979.3 million to R6,974.6 million. This growth was primarily driven by price increases implemented to offset the rising costs of raw materials and increased volumes in the packaging sector.

However, it’s worth noting that the second half of the year experienced a slight slowdown in growth due to factors such as load shedding and inflationary pressures impacting consumer demand. Margins also faced pressure in the latter part of the year, primarily due to softened demand and increased competition.

Effective Cost Management

The company’s success isn’t solely attributed to revenue growth but also effective cost management. Caxton & CTP managed to keep staff costs in check, with a moderate increase of 6.9% to R1,307.7 million, while other operating expenses grew by 7.7% to R1,139.7 million.

Impact of Catastrophic Events

Caxton & CTP had to navigate through unexpected challenges during the year, including the devastating Kwa-Zulu Natal floods that affected its Durban commercial printing plant. However, the company’s resilience and proactive response are evident as the net impact on operating profit was a positive increase of R84.6 million.

Strategic Investments

During the year, Caxton & CTP made strategic investments totaling R144.6 million, which included acquisitions such as the Amcor bag-in-box bladder business and additional shares in Mooivaal Proprietary Limited, among others.

Dividends and Future Outlook

The company remains committed to providing value to its shareholders. As a result, the board declared a final dividend of 60.00 cents per ordinary share, representing a 20% increase from the previous year. Additionally, a preference dividend of 490.00 cents per preference share was declared.

Looking ahead, the company acknowledges that the economic environment may pose challenges, with consumer demand expected to be constrained. However, Caxton & CTP remains well-prepared, boasting significant cash reserves that can be deployed strategically, either within existing businesses or through acquisitions.

Conclusion

Caxton & CTP Publishers & Printers Ltd’s 2023 financial results reflect a year of remarkable growth and resilience in the face of challenges. The company’s ability to adapt, coupled with its sound financial strategies, positions it well for the future, ensuring its continued prominence in the South African publishing and printing industry.

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