Caxton and CTP Printers and Publishers has reported a drop in revenue and profit for the six months ended 31 December, as the group faces declining consumer demand.
Revenue declined by 0.5% to R3.6-billion compared to the same period in 2024. The group says this was mainly due to lower national and local advertising income.
Profit dropped by 4% to R332.1-million, down from R346-million a year earlier, after paying R114.4-million in tax.
Mixed bag for Caxton & CTP Printers and Publishers
Despite the weaker performance, the board declared interim dividends of R1 per ordinary share (gross) and R7.98 per preference share (gross) for the six-month period.
Caxton revealed that various divisions were affected in different ways, with the publishing and printing segment down, while packaging operations showed positive profits.
Packaging and stationery revenue increased by 1.9%, assisted by gains in several markets, and organic growth in the quick-service restaurant sector. However, this was partly offset by lower beer label revenue.
No benefit from stronger Rand yet
“Raw material landed prices remained stable and the continued efforts around alternative sourcing remain paramount, especially in light of the announcement that the Mpact mill in Springs will probably close.
“We are fortunate that we have existing relationships such that, if need be, we can redirect our required volumes. The relative strengthening of the rand is yet to benefit our business as we work through our current stock levels,” said Caxton.
The group reported that costs were kept under control as staff costs increased slightly by 0.7% while other operating costs increased by 1.8%. These were affected by a R10-million diesel cost due to inconsistent power supply in Durban.
Profit from operating activities before depreciation and amortisation declined by R28-million, or 5.9%, while profit after depreciation and amortisation fell by R27-million, or 7.8%. This was partly offset by a R3.8-million increase in net finance income.
Pre-tax profit came in at R446.5-million.
Group hopes for positive outlook
“With sentiment improving as lower inflation, reducing interest rates, Rand strengthening, and credit upgrades take effect, the Group hopes to see a marginal increase in growth having a positive impact on the Group; but nothing at the moment suggests that any of these will filter through in the second half of the financial year.
“The focus remains on capitalising on our strengths, improving efficiencies and being consistently on the lookout for acquisitions that will grow our packaging footprint,” Caxton said.
