CA Sales Holdings has reported a modest rise in earnings for the first half, but expects better seasonal trading and the growing contributions from recent acquisitions to boost performance in the second half.The group offers services from distribution and warehousing to marketing and in-store promotions for fast-moving consumer goods (FMCG), ensuring customers’ brands reach stores and shoppers across Southern and East Africa.On Thursday, the group reported a 2.2% increase in revenue to R6.08bn for the six months to end-June, which it described as a “resilient operational performance” in a market affected by subdued consumer spending and the depreciation of the Botswana pula against the rand.Headline earnings increased 6.4% to R257.1m, while HEPS increased 5.9% to 53.41c. The group’s total assets increased 9.1% to R6.38bn mainly due to the expansion of warehouse capacity in Eswatini and intangible assets arising from business combinations. In the period, the JSE- and Botswana Stock Exchange-listed group acquired a 71.19% interest in Main Street Holdings, the holding company of South African distributor Sunpac, for R204.1m effective from June 1. Sunpac is a route-to-market partner with specialist capability in the growing private- and confined-label category. It also acquired a controlling stake in Pantry Club, an e-commerce online business.Post the period-end, it increased its existing shareholding in its associates, Roots Sales and Trapin Holdings, to 64% and 55%, respectively. It also acquired a minority share in digital-marketing specialist The Digital Media Consultancy.The company only pays a dividend at year-end. CA Sales expects a stronger second half, in line with its normal seasonal trading and supported by the growing contribution of the recent acquisitions during and after the reporting period, it said.“The group intends to keep investing through the cycle, positioning the business to emerge stronger as consumer conditions recover. In the near term, the priority is to integrate the recent investments and realise their value while deepening route density and growing market share,” it said.It also plans to expand in East Africa and continue to build digital, data and category capabilities that set its route-to-market offering apart. “Active management of margin, working capital and cash, together with a strong balance sheet, gives the group the capacity to fund future growth from its own resources,” it said.In early trade on Thursday, the company’s share price was up 1.8% at R13.54, but it is down almost 10% year to date. Business Day