CA Sales

15 January 2024 By PDSNET

In recent years, the JSE has not seen many high-quality, exciting companies listing on the exchange. One of those few is CA Sales Holdings (CAA), which offered both fund managers and private investors an excellent opportunity to make a significant capital gain last year.

CAA is a company which has grown out of supplying fast-moving consumer goods (FMCG) to Botswana. It also supplies goods to Eswatini (Swaziland), Namibia, South Africa, and a smattering of other African countries. Its business consists of taking on the warehousing and distribution of specific brands on behalf of manufacturers and then getting those brands into stores and then into supermarket trolleys – mainly in Southern Africa.

Looking at its financials for the six months to 30th June 2023, half of CAA’s revenue of R5,2bn originates in Botswana, 19,7% in Namibia, 14,5% in Eswatini and 13,7% in South Africa with 1,8% going to other nearby countries like Zambia, Zimbabwe, Mauritius, and Lesotho. Obviously, the cost of fuel is a major factor in this company since most of the products it handles are moved by truck.

In its maiden interim results for the six months to 30th June 2023 the company reported revenue up 22,5% and headline earnings per share (HEPS) up 21,5%. The growth was mostly organic, but the company has been making acquisitions. The group acquired the T&C Group which is a retail and distribution company in Namibia for R65m which resulted in a gain of R123,6m due to the increased market share in that country.

The group’s balance sheet is healthy with R590,4m in cash and non-current liabilities of only R327m with its finance income exceeding its finance costs. There is an intangible asset of R514,7m on the balance sheet which is the goodwill which has accumulated from making various acquisitions – but that is both expected and quite normal in a company like this since part of its growth comes from buying up successful retail and distribution businesses in various Southern African countries.

The company listed 475,4m shares on the JSE on 27th June 2022. After some initial excitement and some stagging, the share price settled into a steady upward trend in the last three months of 2022. Then for the first 8 months of 2023 it was moving sideways between 650c and 750c.

The break came on 25th August 2023 when the share broke up to 775c and it was added to the Winning Shares List (WSL) on that day. Since then, it has moved up to 1151c – a gain of 48,5% in under five months. Consider the chart:

CA Sales Holdings (CAA): June 2022 - 12 January 2024. Chart by ShareFriend Pro.

Since October 2022, the company has been gaining acceptance among institutional fund managers as a high-quality, growing business. We expect that process to continue, and we expect the company to grow further as it expands its footprint with additional brands and a greater penetration of African markets.

Its business model has great potential given the difficulty that many FMCG companies, such as Pick n Pay, have had in establishing a presence in various African countries.


All information and data contained within the PDSnet Articles is for informational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet Articles are based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any comment or opinion for any reason.

Share this article:


Excessive Bullishness

On Friday last week, the S&P500 index posted yet another new record closing high, but this time just one point higher than the previous day at 5088. This means that the index, which measures the progress of the 500 largest companies on Wall Street, has been climbing without a significant correction for nearly four months. Consider the chart:

Lessons from Transcap

As a private investor it is very important that you study what has happened in the past and learn from it. The progress of Transaction Capital (TCP) has provided us with an excellent opportunity to examine and learn from a complete cycle in an institutional favourite share. We can examine the entire cycle and see how to profit from it. In this regard, it is important


Sasol is a company originally established in September 1950 by the National Party, to counter the possibility of petrochemical sanctions against the old South Africa. Essentially, Sasol used South Africa’s enormous coal reserves to generate about one third of its fuel requirements. Subsequently, Sasol became involved in the chemical industry which now accounts for about


The world has, in the last twenty years, entered what has been characterised as the 4th Industrial Revolution (4IR). It has been described as “... the biggest structural change of the past 250 years — a transformation of scale, scope and complexity unlike anything humankind has experienced before.” In simpler terms, 4IR refers to the digital convergence of

The Great Bull Resumes

On the 12th of June 2023, we published an article, headed "Bull Trend?". In that article we suggested that, after a 25% correction, the great bull market on the S&P500 which began in March 2009 was still intact and would, in time break to a new all-time record high, above the high

Two Elections and Two Wars

As the New Year begins, private investors should consider the most important factors which are likely to impact on the prices of shares and the profits of companies listed on the JSE. Some of these factors are local, like the general election which is expected to take place sometime in May, and some are international like the oil price, the

Fundamental vs Technical

When you decide to buy a share, you are immediately in the business of forecasting. You are predicting that the share price will go up. Because, if you thought it was going to go down, you would not buy it. But, of course, the person that you buy it from makes exactly the opposite prediction – they believe it will go down – that is why they are selling it.

S&P500 Market Action

On the 20th November 2023, we tweeted that the S&P500 index, after its sharp rise of the previous sixteen trading days, would probably experience some sort of correction. That correction did, in fact, materialise, but the strength of the upward trend and the bullish sentiment present in the market reduced it substantially and it has

Near Equities

An equity or ordinary share is one which shares in the risk and returns of a company. Most of the shares listed on the JSE are ordinary shares which rise and fall in price as the company’s potential profits (and hence the prospect for dividends) fluctuate. This is compared to other types of investments like redeemable

NEPI Rockcastle

Real estate investment trusts (REIT) offer an attractive investment opportunity for private investors at the moment. Many are trading below their net asset value (NAV) and those assets mostly consist of very secure properties which are independently valued.

NEPI Rockcastle is a REIT that specializes in owning and managing