Calgro M3 half-year revenue up 13.5%

Calgro M3, a leading property developer and memorial park manager in South Africa, has reported a 13.5% increase in revenue for the first half of the year. The company's success has been attributed to its sustainable business practices and strategic focus on core operations. In a recent interview with CNBC Africa, Wikus Lategan, Chief Executive Officer of Calgro M3, highlighted the key factors driving the company's growth and outlined their long-term vision for continued success. Lategan emphasized the importance of focusing on what the company does best, which is property development and memorial park management. By streamlining their operations and concentrating on their core competencies, Calgro M3 was able to weather challenging economic conditions and achieve strong financial results. Lategan pointed out that the company's revenue from Memorial Parks saw a 33.5% increase in cash flow, despite relatively flat accounting figures. Additionally, the introduction of a labor offering during the period resulted in a significant boost to sales. Calgro M3 also doubled its marketing and advertising spend to drive customer engagement and attract interest in its properties. Lategan highlighted the company's commitment to providing affordable housing solutions to low-income households in South Africa. By offering fully inclusive packages and partnering with banks to provide 100% home loans, Calgro M3 has been able to cater to a market segment that is often underserved. The company's focus on delivering value for money and quality housing options has resonated with consumers, leading to sustained demand for their properties. In terms of liquidity and future investments, Calgro M3 boasts a strong financial position with 632 million in available liquidity. Lategan emphasized the company's self-funding approach to infrastructure development and highlighted their robust balance sheet, which features the lowest net equity levels in over a decade. The company's prudent capital allocation strategy and focus on long-term sustainability have positioned them for continued growth and resilience in the face of economic uncertainty. Looking ahead, Lategan expressed confidence in Calgro M3's prospects for the coming years, citing a healthy outlook for 2022 and 2023. He underscored the importance of maintaining a pragmatic approach to growth and capitalizing on market opportunities while prioritizing financial stability and shareholder value. With a clear vision and strong foundation, Calgro M3 is poised to sustain its impressive performance and drive long-term value for stakeholders.