CA Sales profits take a knock
Absa Botswana has told shareholders that consolidated interim results for the period ended 30 June 2020 will be substantially lower than the results reported for the period ended 30 June 2019.
According to a statement issued by interim Chairman, Alfred Dube profit before tax is expected to be lower by between 60 - 70 percent (approximately BWP230 million to BWP270 million) than that reported for the period
Keikantse Lesemela ended 30 June 2019, which amounted to P387 million. “The outbreak of Covid-19 has had a significant impact on the economy and business community across different industries at large. In our business, the impact has been significant on the credit impairment provisions line given the size of our business as well the strategies we deployed to support our customers during this difficult time, through extension of payment holidays and other relief programs,” commented
CA Sales Holdings Limited announced that it is expecting about 36 percent decrease in profit before tax in its half-year period ending 30 June due to the impact of Covid- 19 pandemic.
In a statement, the Board of CA&S said the profit for the six months period is expected to be between R75.8 million and R81.7 million compared to R117.6 million recorded in the previous corresponding period. The company’s headline earnings per share (HEPS) for the six months period have been negatively affected by the global Covid-19 pandemic. “HEPS is expected to decrease to between 3.72 cents and 4.54 cents per share, a decrease between 23 percent and 28 percent in comparison to the HEPS of 16.33 cents reported in the previous corresponding period,” states the company.
However, majority of the Groups products and services are classified as essential products and services, ensuring continued
Absa.
This surge in credit impairments provisions has materially impacted our profit before tax in comparison to prior period results.
The full details will be provided to shareholders at the announcement of the half year financial results due to be released in September 2020. Shareholders of the company and potential investors have advised to exercise caution when trading in the Company’s securities until the results are formally published. trading during the covid-19 pandemic. The company highlighted that trade restrictions in certain sectors and challenges in cross border distribution hampered the expected growth. According to the company, the businesses that were significantly impacted by the trade restrictions in the second quarter were the distributors of alcohol and tobacco products as well as the promotions operations.
Trading bans have since been lifted in South Africa but the ban on the sale of alcohol products is still in force in Botswana and Eswatini.
In its year-end December 2019, the group recorded 24.3 percent increase in profit to over R1billion. Profit after tax increased to R 208 million compared to R172 million in 2018. CA Sales operates in eight Southern African countries: Botswana, South Africa, Lesotho, Mozambique, Namibia, Eswatini, Zambia and Zimbabwe. The group specializes in fast moving consumer goods and its services include warehousing, distribution, selling, merchandising, shopper marketing, training and debtor’s administration.