CA SALES FEEL THE ALCOHOL BAN STING

Southern African distributor, CA Sales Holdings Limited recorded 45.6 percent decline in profits for the half year ended June 2020. The majority of the group’s products and services are classified as essential products and services ensuring continued trading during the COVID-19 pandemic. Commenting on the results, CA Sales Chief Executive Officer, Duncan Lewis said the group produced satisfactory results despite foreign exchange loss of R42.8 million. He said the operational profit growth on prior year was underpinned by a good overall performance from the majority of the operations for the six months period. “The businesses that were significantly impacted by the trade restrictions in quarter two were the distributors of alcohol and the promotions operations.” Lewis stated that revenue increased by 18.5 percent to over R3.4billion despite the trade restrictions in certain sectors and challenges in cross-border distribution. New clients obtained in the latter half of the prior year contributed to the first half growth on prior year. “In this challenging operating environment, management focused on delivering operational excellence, optimal service levels and identifying cost savings initiatives.” He pointed out. The group indicated that basket mix of tobacco products sales, specifically tobacco product sales and reduced liquor sales resulted in reduced profits of 8.9 percent to R491 million compared to R451.2 million last year. The group highlighted that the government’s attempts through imposed regulations, to curb the spread of the virus is unpredictable and the impact of continued restrictions on alcohol sales will hamper the group’s growth in certain markets. “The group will continue its expansion where feasible by growing its principal and customer networks and making value-adding acquisitions”.