CEO's message

Disciplined execution in a demanding operating environment

Despite macroeconomic pressure across several markets, the group delivered strong earnings growth, with operating profit increasing by 10% and headline earnings rising by 17.9%. This reflects disciplined execution, continued investment in scalable infrastructure and the strength of our longstanding client partnerships. While revenue growth was below expectations in certain markets, the quality of the group’s performance remained strong, underpinned by improved earnings delivery and operational discipline.

Throughout the year, our teams remained focused on delivering reliable solutions while adapting quickly to support clients and stakeholders in a dynamic environment. Growth in headline earnings and net profit after tax confirm that we remain on track to deliver against our long-term ambitions.

We entered the year with clear priorities: strengthening operational control, building scale, advancing our digital and data agenda and investing selectively in long-term growth opportunities, including our expansion into East Africa. These priorities remained central to our decision-making.

Operating conditions remain challenging across several markets. In Botswana, macroeconomic pressures persisted, exacerbated by slow diamond sales, which contributed to the Reserve Bank’s decision to devalue the pula earlier in the year. The market also experienced price deflation in key commodity categories, impacting revenue but partially offset by volume growth and operational discipline. Despite this localised headwind, the underlying quality of the group’s performance remained strong.

In South Africa, structural economic challenges persist. However, the operating environment showed signs of improvement as electricity grid reliability strengthened, inflation moderated and the rand firmed. South Africa’s exit from the Financial Action Task Force grey list further supported improving business sentiment.

Across our footprint, conditions remain varied, but our approach is consistent: focusing on what we can control – effective cost management, reliable service delivery and strong, enduring client partnerships, disciplined execution in a demanding operating environment

Strategy and growth

Our growth strategy centres on deepening relationships with existing clients by extending service offerings, supporting expansion into new markets and broadening channel reach. This is enabled by our integrated operating model – the Power of & – which combines local market expertise with the scale, data capability and partnership strength of the group to deliver superior outcomes.

During the year, we hosted our inaugural client summit, bringing together more than 400 clients and strategic partners from across our footprint to share insights, align on growth opportunities and strengthen collaboration. Contributions from external thought leaders enriched discussions on economic trends, brand development and African growth.

The acquisition of a 35% interest in Tradco represents an important step in establishing a scalable route-to-market platform in East Africa across Kenya, Tanzania and Uganda.

East Africa remains one of the most compelling growth opportunities for the group, characterised by fragmented route-to-market structures, increasing formalisation and rising demand for branded consumer goods. This fragmentation leaves many clients underserved, presenting a clear opportunity to build scale through more integrated, efficient route-to-market solutions.

Our model combines locally embedded leadership with the operational capability and systems of the broader CA&S Group. We continue to partner with local operators as part of a client-led build-and-buy strategy, enabling scale while maintaining strong local relevance.

This expansion is supported by a disciplined acquisition approach focused on businesses with strong competitive positions, proven profitability, trusted management teams and deep local market insight.

Our growth ambitions reflect the maturity and diversity of our portfolio. In Southern Africa, we target sustainable growth through channel expansion and complementary services. In East Africa, we are focused on building scale in markets where we see strong long-term potential.

Across the group, our businesses remain focused on strengthening market share through consistent execution and close client collaboration. Channel expansion remains a priority, including convenience and forecourt participation, health care and pharmacy distribution, and increased scale in complex general trade environments such as township and informal retail.

Digitisation continues to enhance operational efficiency and decisionmaking. During the year, we advanced automation across route-tomarket processes, progressed image recognition trials to strengthen in-store compliance, enhanced data visibility and expanded capability into e-commerce enablement and retail media.

We also continue to identify and replicate best practices across territories, supported by strong local leadership.

Regional performance

SOUTH AFRICA

Our South African operations delivered double-digit revenue and profit growth. While consumer pressure persisted, we expanded market share, client coverage and route density.

Execution continues to strengthen through improved digital enablement and ongoing investment in people development through learner programmes and culture-building initiatives.

The continued integration and expansion of our business has strengthened our reach into township and informal retail channels, supporting distribution depth and long-term brand development.

We are pleased that the PnS Group retained its Top Employer status and will celebrate its 50th anniversary in 2026.

BOTSWANA

Botswana remained a challenging environment, impacted by currency volatility, supply chain constraints and reduced consumer purchasing power linked to pressure in the diamond sector.

The business responded through cost-saving and efficiency initiatives across the supply chain, energy usage and waste management.

Distribution efficiencies were unlocked through integration between SMC Brands and Smithshine and consolidation into the Gaborone hub, while cash generation improved through stronger inventory and collections management.

NAMIBIA

In Namibia, Wutow maintained a strong focus on operational discipline, including overhead control, back-office integration and technology enablement.

The business expanded temperature-controlled logistics capability, secured new clients and strengthened cold-chain reliability. Efficiency initiatives – including fuel optimisation, route planning and stock-loss control – supported performance.

The relocation of SMC Brands to upgraded warehouse facilities enhanced capacity and service delivery, while distribution capability was strengthened in response to shifting demand into northern regions.

ESWATINI

Supply constraints and price increases drove increased consumer trade-down behaviour. The business remained focused on disciplined execution while progressing development of the Logico Mega Park to support consolidation and future scale.

The implementation of SAP and fleet management systems enhanced data visibility, service management and asset utilisation, while continued investment in people and infrastructure supported resilience.

EAST AFRICA

Our East African operations gained momentum, supported by steady economic growth, infrastructure investment and rising demand for trusted brands across urban and rural marketplaces.

Tradco delivered a positive performance, supported by new client sign-ons and continued capability development. We strengthened route-to-market execution, expanded logistics and last-mile services and continued building scale alongside local partners in Kenya, Tanzania and Uganda.

Our partnership with Tradco reflects the Power of &, combining local insight with the group’s broader capabilities to extend reach and deliver greater value. Founder David Maina Kamiru continues in a leadership role, providing continuity as we advance our ambitions in the region.

OTHER MARKETS

Across Zambia, Zimbabwe and Lesotho, we expanded multinational client participation, strengthened distribution capability, increased operational capacity and advanced digital initiatives.

SMC Brands in Lesotho showed meaningful progress.

Our people

Our people remain fundamental to our performance and sustainability. The group ended the year with approximately 18 950 employees across our footprint.

Developing leadership depth remains central to our strategy, with succession planning a key component of long-term sustainability. Leadership transitions during the year demonstrated the strength of our internal talent pipeline.

We continue to strengthen succession processes to ensure continuity, institutional knowledge and readiness to support ongoing expansion.

Our East African operations are supported by experienced leadership from across the group, while the appointment of a Chief Information Officer from within the organisation further demonstrates the depth of internal capability.

Sustainability

Sustainability remains integral to long-term value creation. Our focus remains on our employees and the communities we serve as well as the environment we operate in.

We continue to prioritise sustainable employment, support for local economies and responsible operating practices. In this regard, 96% of our employees received training in the year under review, an increase of 77% compared to the prior period. Our contribution to local economies, in the form of government taxes, amounted to R473.7 million.

During the year, we improved fleet efficiency, reduced emissions and expanded renewable energy generation through solar installations. Recycling infrastructure was also enhanced, reducing waste to landfill.

We remain focused on making practical, measurable improvements to reduce our environmental impact while supporting efficient and responsible operations across our markets.

Outlook

Scaling brands across fragmented African markets requires deep local infrastructure, strong retailer relationships and consistent execution. Over several decades, CA&S has built a multi-territory capability that enables brand owners to expand efficiently across complex markets.

Our diversified footprint provides both resilience and growth opportunity, supported by strong local leadership, long-standing client relationships and deep market understanding.

Future growth will be driven primarily by client-led geographic expansion, alongside the continued development of complementary services that strengthen our value proposition.

Digitisation remains central to our strategy, enhancing execution and enabling better decision-making through improved data visibility and automation. With a scalable operating model and strong partnerships, we remain confident in our ability to continue expanding our platform while delivering sustainable long-term value for shareholders.

We remain mindful of ongoing geopolitical tensions, including the conflict in the Middle East, and the possible impact on global supply chains and energy markets. In response, our distribution businesses have taken proactive steps to secure contingency fuel supply, focusing on those factors within our control and planning accordingly.

Appreciation

I thank our employees across the group for their professionalism and commitment, and our clients, partners, shareholders and board for their continued support.

Together, we will continue building a resilient, scalable and profitable business that reflects the collective strength of the group – the Power of & – in support of our stakeholders across our markets.

Duncan Lewis
Chief Executive Officer