MASSCASH DIVISIONAL REVIEW
FOOD WHOLESALER, RETAILER AND BUYING ASSOCIATION

MASSCASH STORE PROGRESS

OPENING BALANCE
   

MASSCASH WHOLESALE

 
STORES ACQUIRED 
KIMBERLEY
SUPERBLOEM
UPINGTON
 
   
STORE CONVERTED 
RAHME GUYS  
   
STORES CLOSED 
BARA RANK, DIEPKLOOF
BLOEMFONTEIN CASH AND CARRY
JUMBO BLOEMFONTEIN
KIMBERLEY CASH AND CARRY
LIQUORLAND EXPRESS, DIEPKLOOF
 
   
TOTAL STORES
DECEMBER 2012
   
OPENING BALANCE
   

CAMBRIDGE FOOD

 
STORES OPENED 
EAST LONDON
MDANTSAME
 
   
STORES ACQUIRED 
TEMBA  
   
STORE CONVERTED 
RAHME GUYS  
   
STORES CLOSED 
NEWTOWN  
   
TOTAL STORES
DECEMBER 2012
   
Trading space m2 397,118
DC space m2 31,292
Financial performance

Sales
R13,407.2 million

Trading profit before tax
R221.2 million


Improving efficiencies


Investing in our human resources


Investing in our community

Thousands of children continue to receive a balanced meal at a container kitchen sponsored by Masscash. Each container costs about R67,000 to convert and a Masscash store then ‘adopts’ a container and provides a safe and hygienic food preparation environment for volunteers to prepare and distribute food to hungry school children.

HIGHLIGHTS

  • Sales growth of 15.3%
  • Trading profit before tax increased by 19.4%

KEY SALES DRIVERS

  • Food inflation, particularly commodities
  • Social grants
  • New stores
  • Retail food acquisitions

  • 14 CCW stores acquired in June 1998
  • 6 Jumbo stores acquired in April 2001
  • 22 Brown and Weirs stores acquired in July 2010
  • Two chains combined under CBW format from July 2001
  • Now 79 stores
  • Operating in SA, Botswana, Lesotho, Namibia, Swaziland
  • Food/liquor/groceries/ethnic cosmetics
  • LSM 2-6

  • 15 Rhino Cash and Carry Group stores acquired
    March 2012
  • Now 44 stores
  • Operating in SA
  • Food/groceries
  • LSM 2-5
 

  • 78 members acquired March 1992
  • Now 434 members and 487 outlets
  • Operating in South Africa, Botswana, Swaziland
  • Food/groceries
  • LSM 2-6

The Masscash brands

Masscash consists of a Wholesale Division with cash and carry food and cosmetics businesses and Retail food outlets which target the lower LSM groups. Our Wholesale Division consists of CBW Holdings, Jumbo Cash and Carry, Trident, Cellshack and Shield whilst our Retail Division is consolidated under the Cambridge Food banner and the Rhino Cash and Carry Group.

CBW and Trident wholesale food, liquor, groceries and cosmetics in bulk to independent dealers, Government feeding schemes, franchise members, small traders and hawkers in peri-urban and rural areas within southern Africa.

Jumbo sells mainly cosmetics, toiletries and hair-care products to individual customers and independent general dealers. Shield is a voluntary buying association that buys products in bulk on behalf of 434 members who own wholesale or retail food businesses in South Africa, Botswana and Swaziland. We offer wholesale customers with formal operations the ability to trade under national retail brands such as Saverite, Multisave, Powersave and Liquorland. Our marketing team offers support to these supermarkets and bottle stores, assisting owners with marketing initiatives such as designing of leaflets, signage and implementing national television and radio advertising campaigns.

On the retail side, all our outlets are consolidated under the Cambridge Food brand. Cambridge Food’s mission is to help its customers save money every day so that they can live better. Food Retail service departments, consisting of an on-site bakery, butchery and fresh fruit and vegetable offering form an important component of our Cambridge Food retail offering.

Future outlook

We anticipate a continuation of the aggressive trading amongst the corporate food retailers serving the low-income customer. However, we are cautiously optimistic about our growth over the next year. The LSM 2 – 6 market remains highly fragmented, and Masscash is well-positioned to offer new retail formats and to expand our current footprint to better supply food, cosmetics, liquor, cigarettes and cellular to lower-end consumers.

To ensure future growth, Masscash will focus on building its Retail Division, expanding the wholesale range to include meat as well as fruit and vegetables, growing the franchise formats and expanding into Africa. Our strategy is to open 10 more stores through our Rhino acquisition each year as we seek to grow our footprint nationally. The Company will also seek to develop the quality and depth of its new store pipeline and the speedy conclusion of binding agreements to secure approved sites.

 

READ MORE
More information on the divisional financial
performance can be found in:

LETTER TO STAKEHOLDERS
FINANCIAL DIRECTOR’S REVIEW

 

  Grant Pattison Chairman, Neville Dunn Divisional Managing Director of Masscash Wholesale, Kevin Vyvyan-Day Divisional Chief Executive of Cambridge Foods, Jane Bruyns HR Director, Guy Hayward Non-executive Director, Dino Holmes Financial Director of Masscash Wholesale, Pearl Maphoshe Non-executive Director, Eben Mare Financial Director of Cambridge Foods, Mike Marshall Business Systems and Process Director, Jon Martinek Merchandise Director, Mike Spivey Non-executive director, Llewellyn Steeneveldt Non-executive Director, Robin Wright Group Food Executive, Ilan Zwarenstein Non-executive Director