Integrated report 2023 for the year ended 31 December
Contents
01 About this report
About this report | 1 |
Our financial and non-financial milestones | 3 |
Introducing | |
02 CA&S Group | 5 |
Who we are and what we do | |
The CA&S story | 6 |
Our vision and mission | 7 |
Our footprint | 8 |
Group companies overview | 9 |
Our value creation business model | 11 |
Strategic | |
03 business context | 14 |
Chairperson's message | |
Operating environment | 16 |
Stakeholder relationships | 17 |
Risk considerations | 22 |
Material matters | 24 |
04 Strategic overview | 29 |
CEO's message | |
Group strategy | 31 |
INTEGRATED REPORT 2023
05 Performance review
CFO's message | 34 |
Value added statement | 36 |
Summary of ratios and statistics | 37 |
Country review | 38 |
06 Sustainability review
ESG roadmap | 44 |
Natural capital | 45 |
Human capital | 50 |
Social capital | 52 |
07 Corporate governance
Board of directors | 57 |
Corporate governance review | 60 |
Statement of compliance | 62 |
Committee reports | 65 |
Embedding ESG across our subsidiaries | 68 |
Remuneration report | 69 |
Annual financial | |
08 statements | 76 |
Shareholder | |
09 information | 166 |
10 Corporate information | IBC |
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE | ||||||||
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION | ||||||||
About this report
INTRODUCTION
The CA&S Group is a collective of fast- moving consumer goods (FMCG) businesses operating in Africa. The group offers route-to-market solutions for some of the world's most-loved consumer brands. The group collaborates with clients, taking brands beyond borders and navigating the supply chain to reach stores, shelves, baskets and trollies. The group listed on the Botswana Stock Exchange (BSE) in 2017 and has held a dual primary listing on the JSE Limited (JSE), since June 2022.
INTEGRATED REPORT
DOUBLE MATERIALITY
Enterprise value: | Social and environmental value: |
the impact of company performance and | the impact of the group's activities |
trends in the operating environment on the | and performance on society and the |
group's sustainability | environment |
Strategy | Operating context | Material risks and | Stakeholder needs |
opportunities | and priorities | ||
FINANCIAL REPORTING
OBJECTIVE OF THE REPORT
The aim of the CA&S 2023 Integrated Report (IR) is to offer a comprehensive assessment of our ability to create and preserve value in the short, medium, and long term. The report provides insights into the group's strategic direction, business model, operating environment, significant risks, governance structure, financial performance and sustainability initiatives for the period spanning from 1 January to 31 December 2023.
INTEGRATED THINKING AND MATERIALITY
We acknowledge the intricate interplay of different internal and external factors and recognise their influence on our capacity to generate sustainable value. Integrated thinking therefore serves as the foundation for our cohesive decision-making and the measures we undertake to guarantee sustainable value creation, permeating every aspect of our operations. Aligned with this is our approach to materiality, a concept that lays the foundation for our reporting. The concept of "materiality" serves as the basis for our reporting strategy, which focuses on issues that are important to both the group and our key stakeholders.
REPORTING FRAMEWORKS
In preparing this report, we have adhered to the guidelines set out in the International Sustainability Standards Board's International Framework while also incorporating the principles and practices outlined in the King IV Report on Corporate Governance for South Africa, 2016 (King IV™). Furthermore, our consolidated annual financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), the South African Companies Act, and the Listings Requirements of the JSE and BSE.REPORTING SCOPE AND BOUNDARY
As the integrated and sustainability reporting landscape evolves, we remain committed to enhancing our disclosures. This report covers the primary operations of the CA&S Group's subsidiaries and associates located in Africa. The report encompasses both financial and non-financial disclosures. While it caters primarily to investors, it presents pertinent information to other key stakeholders, such as our employees, clients, regulators and society. Financial information is reported in South African Rand, unless otherwise stated.
Navigation icons
SIX CAPITALS
Financial | Intellectual | Manufactured | Natural |
capital | capital | capital | capital |
Social | Human | ||
capital | capital | ||
OUR SERVICE OFFERING | |||
Warehousing | Retail execution | Retail support | |
and distribution | and advisory | services | |
services | |||
Technology and | Training | ||
data solutions |
INTEGRATED REPORT 2023
1
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE |
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION |
About this report continued
COMBINED ASSURANCE
We aim to provide our stakeholders with disclosures that are not only meaningful but also accurate, comprehensive, transparent and balanced. The process of determining and approving these disclosures involves the active participation of the board, its committees and the executive team. Deloitte & Touche independently assured our 2023 annual financial statements.
FORWARD-LOOKING STATEMENTS
This report includes forward-looking statements pertaining to the group's operating environment, outlook, and operations. These statements are subject to risks and uncertainties, and various factors could lead to significantly different outcomes than initially anticipated. The forward-looking statements in this report have not been audited by our external auditors.
RESPONSIBILITY AND APPROVAL
The board recognises its responsibility for upholding the integrity of this report. Following extensive discussions with the executive team, the board is satisfied that this report encompasses all material issues pertinent to the group's capacity to sustain and create value. The report also presents a fair and comprehensive account of the integrated performance of the group. The board formally approved this report on 30 April 2024.
Nature of information
Auditing of our annual financial statements
Material sustainability information
Financial, operating, compliance and risk management controls
Assurance providers
External auditors: Deloitte & Touche
Internally approved by the board as recommended
by the Social and Ethics Committee
Internal control functions, overseen by the
Audit and Risk Committee
INTEGRATED REPORT 2023
Johan Holtzhausen | Duncan Lewis | Frans Reichert | Badal Patel | Blackie Marole |
Independent non-executive | Chief executive officer | Chief financial officer | Independent | Independent |
Chairperson | non-executive | non-executive |
Bridgitte Mathews | Elias Masilela | Frans Britz | Leon Cronje | Shiellah Moakofi |
Independent | Lead Independent | Independent | Independent | Independent |
non-executive | non-executive | non-executive | non-executive | non-executive |
2
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE |
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION |
Our financial and non-financial milestones
OPERATING PROFIT | REVENUE |
(Rm) | (Rm) |
40.7% | 19.4% | ||
INCREASE | INCREASE | ||
'23 | 747 | '23 | 11 322 |
'22 | 531 | '22 | 9 485 |
'21 | 401 | '21 | 8 028 |
EMPLOYEES
R1.539 billion
paid in wages and salaries
(2022: R1.336 billion)
15 268
employment opportunities
in Southern Africa
(2022: 13 506)
HEADLINE EARNINGS
PER SHARE (cents)
25.3%
INCREASE
'23 97.97
'22 78.21
'21 59.61
CLIENTS, CUSTOMERS AND CONSUMERS
Route-to-market solutions
delivered in more than
19 840
outlets and stores
(2022: 11 600)
1 500
consumer goods brands
represented
EARNINGS PER SHARE | DIVIDEND DECLARED |
(cents) | PER SHARE (cents) |
59.5% | 27.4% | ||
INCREASE | INCREASE | ||
'23 | 125.22 | '23 | 19.56 |
'22 | 78.53 | '22 | 15.35 |
'21 | 58.05 | '21 | 11.77 |
COMMUNITY
R5.4 million
CSI spent in 2023
(2022: R4.3 million)
51
charitable organisations/
initiatives supported
(2022: 42)
PAGE 50 | PAGE 11 |
INTEGRATED REPORT 2023
PAGE 52
3
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE |
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION |
Introducing CA&S Group
Who we are and what we do | 5 |
The CA&S story | 6 |
Our vision and mission | 7 |
Our footprint | 8 |
Group companies overview | 9 |
Our value creation business | |
model | 11 |
INTEGRATED REPORT 2023 | 4 |
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE |
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION |
Who we are and what we do
The CA&S Group is a collective of fully integrated FMCG businesses operating in Africa. We provide route-to-market solutions for some of the world's most-loved consumer brands.
The group collaborates with clients, delivering brands across borders and navigating the supply chain to reach stores, shelves, baskets and trollies. We ensure availability for and visibility to African shoppers, including promoting the brands.
Working closely with clients, we address trade obstacles, enhance shelf presence and safeguard market shares.
OUR SERVICE SOLUTIONS
The CA&S Group operates in several southern and East African countries. Our service solutions include selling and distributing fast-moving consumer goods as well as services such as retail execution and advisory, retail support, training and technology and data solutions.
We provide specialist services in five key areas:
01 WAREHOUSING AND DISTRIBUTION
The group possesses an unmatched distribution network in the region, with our operations working closely together to extend the reach of brands across borders. Our effective storage solutions, coupled with the efficiency of our distribution network, ensure a reliable and consistent delivery process for our clients, with the assurance that their products are securely stored and readily available for distribution.
02 RETAIL EXECUTION AND ADVISORY SERVICES
We collaborate with leading brand owners to enhance their brand growth, expanding market share and volume from formalised trade to the informal market. Our focus includes increasing on-shelf visibility, optimising brand positioning, and implementing effective category flows to ensure sufficient and readily available stock, especially during fluctuating demand.
CA&S actively contributes to maintaining retailer systems, influencing sales where possible, and leveraging deep local channel knowledge with established and respectful retailer relationships at all levels.
The CA&S team, comprising industry experts with extensive experience in retail and manufacturing, assists clients in developing comprehensive route-to-market strategies to unlock brand and business potential. Our services extend to key account management, category plans, data analytics, specialist retail recruitment, and support for regional and global expansion.
03 RETAIL SUPPORT SERVICES
The CA&S Group offers retail support by running shopper marketing campaigns and brand activation at the point of purchase. Our sales-oriented staff members engage acutely with clients' brands to effectively educate and promote their benefits and advantages.
Additionally, our point-of-sale (POS) specialist teams execute POS strategies, ranging from constructing cardboard bins and ad hoc displays to creating permanent, customised stands in steel, glass or wood.
04 TECHNOLOGY AND DATA SOLUTIONS
With over 20 years of expertise in the sales force automation space, CA&S offers purpose-built, adaptable, and end-to-endcloud-based FMCG value chain software solutions and platforms to leading brands across 16 countries. Our mobile solutions encompass everything from sales and invoice generation to stock management, consumer loyalty and rewards and integrated mobile payments.
05 TRAINING
We specialise in training, empowering and motivating work forces to improve productivity. Practical tailored modules include retail execution and a selection of business, IT, wellness and personal development topics.
INTEGRATED REPORT 2023 | 5 |
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE |
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION |
Revenue from services (%)
WAREHOUSING | RETAIL EXECUTION AND | OTHER SERVICES | |||
AND DISTRIBUTION | ADVISORY SERVICES | ||||
'23 | 85 | '23 | 13 | '23 | 2 |
'22 | 84 | '22 | 14 | '22 | 2 |
The CA&S story
The CA&S Group was founded in 2012 with the acquisition of CA Sales and Distribution in Botswana, a company with a 40-year history at the time of purchase.
Our vision was to establish a group capable of offering multinational brand owners similar or complementary route-to-market solutions across borders, facilitating the distribution of their products to more shoppers in different countries. This vision led to subsequent acquisitions of founder-run businesses across African markets, known for their deep in-country roots, longstanding trading relationships and proven track record of delivering value-adding solutions to clients.
COLLABORATION | SALES | ||||||
Collaboration is how our shared | When we do collaboration, activation | ||||||
experience, expertise and knowledge | and the Power of "&" correctly, improved | ||||||
in our territories and our fields make a | ACTIVATION | THE POWER OF "&" | sales are the result. Sharing the success | ||||
meaningful impact for our clients and | of our clients' brands and growing | ||||||
their brands. | We take a brand's true potential and | We believe in the exponential power | together exponentially through every in- | ||||
store and on-shelf opportunity, creates | |||||||
put it into action. We execute and | of mutualistic partnerships to unlock | ||||||
true brand affinity for our shoppers. | |||||||
operationalise, order, store, deliver, | potential for our clients, our people | ||||||
and activate channels, opening market | and their communities, as well as our | ||||||
access and brand success. | business and shareholders. | ||||||
INTEGRATED REPORT 2023 | 6 |
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE |
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION |
Our vision | Our mission |
To be the most effective group at seamlessly executing | To leverage the potency of our collective reach, scale, |
and driving clients' brand strategies on the ground, for | market insights and experience to ensure we repeatedly |
the best possible sales return on their investment. | deliver against our clients' expectations, building real |
partnerships in the process. |
Our guiding values
Distinguished delivery
We consistently strive to exceed expectations by creating and delivering remarkable customer experiences through a performance-based culture built on accountability and collaboration.
We rely on each other
Being able to rely on each other through every opportunity makes us stronger together. It helps us deliver consistently high service levels and value-added results that build complete client confidence.
A multi-focal approach
Our multi-focal approach and broad understanding of our markets help us develop unique and relevant insights needed to identify and act on opportunities today that will build longer-term sustainability.
Entrepreneurial hearts
We're able to respond and act on opportunities by adapting and engaging ourselves with speed, energy, tenacity and agility.
INTEGRATED REPORT 2023
People partnerships
We create and sustain meaningful relationships through collaboration, transparency, mutual respect, and a passionate focus on client partnerships and our people.
Pathfinders in solution seeking
Our entrepreneurial vision and passion for innovation help to drive us further every day, constantly seeking improvement and the advancement of our people and businesses.
7
ABOUT THIS | INTRODUCING | STRATEGIC | STRATEGIC | PERFORMANCE | SUSTAINABILITY | CORPORATE | ANNUAL FINANCIAL | SHAREHOLDER | CORPORATE |
REPORT | CA&S GROUP | BUSINESS CONTEXT | OVERVIEW | REVIEW | REVIEW | GOVERNANCE | STATEMENTS | INFORMATION | INFORMATION |
Our footprint
We maintain a dual primary listing on both the
Botswana Stock Exchange and the JSE Limited.
WHAT DIFFERENTIATES US
- Operations in eight African countries and services in several more.
- Broad trade coverage, from bottom-end and convenience to formal and corporate stores.
- Deep local market knowledge and understanding.
- Shared experience between our businesses, across geographies and specialised focus areas.
- Long-standingrelationships with major multi-national manufacturers.
- Our customer relationships, combined with regional connectivity and shared collective expertise, grants the CA&S Group a powerful and unmatched competitive advantage in the region.
REVENUE CONTRIBUTION PER COUNTRY (%)
50% | 19% | 15% | |||
(2022:54%) | (2022: 15%) | (2022: 15%) | |||
BOTSWANA | NAMIBIA | ESWATINI | |||
CA Sales & Distribution | SMC Brands | Logico | |||
Smithshine Enterprises | Wutow | SMC Brands | |||
Kalahari Training Institute | MACmobile | MACmobile | |||
PEO Promotions | Visible Worx | Visible Worx | |||
SMC Brands | T&C Group | ||||
MACmobile | |||||
Visible Worx |
INTEGRATED REPORT 2023
KENYA | ||
MACmobile | ||
ZAMBIA | ||
Smithshine Distributors | ||
2% | Promexs | |
MACmobile | ||
Visible Worx | ||
(2022: 1%) | ||
ZIMBABWE | ||
MACmobile | ||
Visible Worx | ||
LESOTHO | ||
14% | SMC Brands | |
Whitakers | ||
MACmobile | ||
(2022: 15%) |
SOUTH AFRICA
The PnS Group
Effective Sales &
Merchandising
MACmobile
Visible Worx
MarketMax
8
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
CA Sales Holdings Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 12:47:10 UTC.