Table of Contents
Key Points
- Caxton & CTP Publishers’ profit dropped 14.38% to R657.36 million ($37.07 million) due to economic challenges and rising costs.
- Revenue fell 4.69% to R6.65 billion ($375.36 million), impacted by a loss from a business sale and subsidiary closure.
- Caxton’s packaging division grew 4.3%, while cost-saving measures and increased insurance proceeds helped stabilize finances.
Caxton & CTP Publishers, the South African media and publishing powerhouse led by Terrence Moolman, reported a 14.38-percent decline in profit for the fiscal year ending June 30, 2024. Profit fell from R751.88 million ($42.39 million) in 2023 to R657.36 million ($37.07 million), driven by rising costs, and subdued consumer spending.
According to the group’s financial results, revenue also dropped by 4.69 percent, sliding from R6.98 billion ($393.85 million) to R6.65 billion ($375.36 million). The revenue contraction was partly due to a R176.1-million ($9.94 million) loss from a business's sale and a subsidiary's closure, further exacerbating the group’s struggles in a difficult economic climate.
Key drivers of profit decline
Caxton’s publishing and printing divisions faced significant challenges due to declining advertising revenues and reduced printing volumes as major retailers cut spending. South Africa's high inflation and interest rates also dampened consumer confidence, leading to lower demand in key sectors.
Despite these difficulties, Caxton's packaging division saw a 4.3-percent growth, offering some relief in a tough year. This segment’s performance helped mitigate the overall decline, with Caxton using its packaging business to offset media division losses.
To address inflationary pressures, Caxton implemented cost-saving measures, including stabilizing raw material prices and installing solar energy systems. Insurance proceeds from the 2022 Durban floods increased to R173.2 million ($9.81 million) from R118.2 million ($6.69 million) in 2023, contributing significantly to the group’s income.
Net finance income also surged 76.6 percent to R237 million ($13.42 million), driven by higher cash balances and favorable interest rates, providing a crucial financial buffer amid external pressures.
Caxton’s future: Diversification ahead
Under the leadership of Terrence Moolman, who co-founded Caxton with Noel Coburn in 1980, the group has grown to manage 88 newspapers and 15 magazines, in addition to its prominent printing and packaging businesses. Moolman’s 47.2-percent stake in Caxton, valued at nearly $100 million, cements his position as one of the most influential figures in South Africa’s media landscape and one of the wealthiest investors on the Johannesburg Stock Exchange (JSE).
Despite the tough operating environment, Caxton reported a 5.2-percent rise in total assets, increasing from R9.18 billion ($517.74 million) to R9.65 billion ($544.66 million), while total equity rose 5.8 percent, signaling the company’s efforts to stabilize its financial footing during a volatile period.
As Caxton looks ahead, the company is expected to further diversify its portfolio and strengthen its packaging business to offset persistent challenges in its media and publishing segments. With ongoing cost management strategies and a focus on sustainable energy solutions, the group is positioning itself to weather future economic storms.
