CA&S profit goes up
CA Sales Holdings (CA&S) has delivered stronger earnings and cash generation in the first half of 2026 despite subdued consumer spending and pressure from the depreciation of the pula against the South African rand. The group profit for the six months ended 30 June 2026 increased to P264,5 million from the P252.3 million recorded in the same period last year. Revenue rose by 2.2 percent to R6.08 billion (P5.09 billion), compared with R5.96 billion during the same period last year.
The operating profit rose 2.3 percent to R342.34 million, while headline earnings increased by 6.4 percent to R257.13 million. Headline earnings per share climbed 5.9 percent to 53.41 cents from 50.44 cents. Commenting on the published Financial Results, CA&S CEO, Duncan Lewis stated that the results point to a resilient performance by the group at a time when consumers across parts of its operating footprint are facing constrained spending. “While parts of the footprint remain exposed to currency movements and subdued consumer spending,” the Group said. “The breadth of the group’s markets and categories, its long-standing client relationships and its depth of local execution underpin the board’s confidence in navigating the balance of the year.”
He highlighted that the strongest growth came from outside Botswana, highlighting the increasing importance of CA&S’s regional diversification strategy. Botswana remained the group’s largest revenue contributor, generating R2.58 billion during the period. However, revenue declined from R2.83 billion in the comparable period, while segmental earnings before interest and tax fell to R118.89 million from R131.87 million. South Africa, by contrast, recorded revenue growth of almost 10% to R1.09 billion, while its segmental EBIT increased to R103.62 million from R88.66 million. Eswatini also recorded solid growth, with revenue rising to R997.83 million from R898.87 million and EBIT increasing to R73.97 million.
The performance comes as CA&S accelerates its expansion through acquisitions aimed at strengthening its route-to-market capabilities, digital offering and access to new consumer channels. In June, the group acquired a 71.19 percent interest in Main Street Holdings, the holding company of South African distributor, Sunpac, for R204.1 million. Sunpac specialises in the private- and confined-label category and provides services ranging from warehousing and logistics to sales, marketing and in-store execution. The acquisition contributed R47.3 million in revenue and R6.2 million in profit after tax to CA&S during the month it was consolidated. The group also acquired a 51 percent controlling interest in Pantry Club, an e-commerce business, for no consideration due to its historical trading losses. The transaction gives CA&S access to e-commerce capabilities and proprietary technology supporting online grocery, order management, logistics optimisation and delivery.
The expansion continued after the reporting period. CA&S increased its stake in Roots Sales Group to 64 percent and in Trapin Holdings, trading as the Tradco Group, to 55 percent. It also acquired a 30 percent interest in South African digital marketing and e-commerce consultancy, The Digital Media Consultancy for R12.5 million. Cash generation provided another significant boost. Operating cash flow surged 93.7 percent to R327.46 million, compared with R169.01 million a year earlier, strengthening the group’s ability to finance growth internally. Total assets increased 9.1 percent to R6.38 billion, driven largely by expanded warehouse capacity in Eswatini and intangible assets arising from acquisitions.
Despite the expansion programme, cash and cash equivalents declined to R1.09 billion from R1.29 billion, reflecting acquisition spending, capital expansion and the settlement of bank overdrafts. Management expects the second half of the year to outperform the first, supported by seasonal trading patterns and increased contributions from recent acquisitions. “The group intends to keep investing through the cycle, positioning the business to emerge stronger as consumer conditions recover,” management said. The company said its immediate priorities include integrating acquisitions, increasing route density, expanding market share and pursuing disciplined growth in East Africa while strengthening its digital, data and category capabilities. For Botswana investors, the results present a mixed picture: the domestic operation remains the group’s largest revenue contributor but is facing clear pressure, while expansion across Southern and East Africa is increasingly providing the diversification needed to sustain group-wide growth.