Caxton & CTP Publishers, the South African media and publishing giant founded by Terrence Moolman, reported a 14.38% decrease in profit for the fiscal year ending June 30, 2024. Profit declined from R751.88 million ($42.39 million) in 2023 to R657.36 million ($37.07 million), due to higher costs and lower customer expenditure.
According to the group’s financial reports, revenue decreased by 4.69 percent, from R6.98 billion ($393.85 million) to R6.65 billion ($375.36 million). The revenue decline was caused in part by an R176.1-million ($9.94 million) loss from the sale of a firm and the closure of a subsidiary, increasing the group’s challenges in a challenging economic climate.
Caxton’s publishing and printing operations faced severe issues as big retailers curtailed spending, resulting in decreased advertising income and lower printing volumes. South Africa’s high inflation and interest rates also eroded consumer confidence, resulting in weaker demand in important sectors.
Despite these challenges, Caxton’s packaging segment had a 4.3% increase, providing some solace in a difficult year. This segment’s success served to limit the total fall, as Caxton used its packaging business to offset losses in the media sector.
To combat inflationary pressures, Caxton implemented cost-cutting initiatives such as stabilizing raw material prices and implementing solar energy systems. Insurance proceeds from the 2022 Durban floods grew to R173.2 million ($9.81 million) from R118.2 million ($6.69 million) in 2023, greatly increasing the group’s profits.
Net finance revenue increased 76.6 percent to R237 million ($13.42 million), boosted by increasing cash levels and favorable interest rates, providing a critical financial buffer in the face of external pressures.
Terrence Moolman, who co-founded Caxton with Noel Coburn in 1980, has led the company’s expansion to oversee 88 newspapers and 15 publications, in addition to its well-known printing and packaging operations. Moolman’s 47.2 percent interest in Caxton, worth about $100 million, solidifies his position as one of the most powerful individuals in South Africa’s media landscape and one of the richest investors on the Johannesburg Stock Exchange (JSE).
Despite the challenging operating environment, Caxton reported a 5.2% increase in total assets, from R9.18 billion ($517.74 million) to R9.65 billion ($544.66 million), while total equity increased 5.8%, indicating the company’s efforts to stabilize its financial footing during a volatile period.
Caxton’s future plans include diversifying its portfolio and strengthening its packaging business to offset chronic challenges in its media and publishing areas. With continued cost-cutting tactics and an emphasis on sustainable energy solutions, the company is equipping itself to weather future economic storms.
