Financial Overview

Consolidated Statements

Consolidated statement of comprehensive income

for the year ended 30 June 2016

GROUP   COMPANY
2016
R’000
2015
R’000
  2016
R’000
2015
R’000
9 102 469 8 272 084 Sales of products    
684 496 838 112 Rendering of services    
22 769 152 822 Sale of raw milk    
8 983 3 233 Rental income    
9 818 717 9 266 251 Revenue    
(7 025 497) (6 482 147) Cost of sales    
2 793 220 2 784 104 Gross profit    
73 688 58 039 Other operating income 44 945 49 369
Dividends received 100 000 49 369
(1 944 333) (1 996 467) Selling and distribution costs    
(300 461) (309 041) Administrative expenses (12 937) (13 415)
(8 493) (8 472) Restructuring expenses - (75)
(49 171) (19 091) Other operating expenses    
564 450 509 072 Operating profit 132 008 85 879
10 139 9 041 Finance income 3 438 2 784
(122 964) (83 105) Finance cost (14) (56)
14 268 10 939 Share of profit in a joint venture after tax    
465 893 445 947 Profit before tax 135 432 88 607
(113 992) (100 286) Taxes (9 925) (10 430)
351 901 345 661 Profit for the year 125 507 78 177
         
    Other comprehensive income to be reclassified to profit and loss in future    
26 461 3 268 Exchange differences on translations of foreign operations    
380 774 348 929 Total comprehensive income for the year, net of tax 125 507 78 177
    Profit attributable to:    
350 906 350 345 Equity holders of the parent 125 507 78 177
995 (4 684) Non-controlling interests    
351 901 345 661   125 507 78 177
    Total comprehensive income attributed to:    
379 779 353 613 Equity holders of the parent 125 507 78 177
995 (4 684) Non-controlling interests    
380 774 348 929   125 507 78 177
    Earnings per share (cents)    
185.9 190,4 Basic profit for the year attributable to ordinary equity holders of the parent    
181.8 182,0 Diluted profit for the year attributable to ordinary equity holders of the parent    

 

Consolidated statement of financial position

at 30 June 2016

GROUP   COMPANY
2016
R’000
2015
R’000
  2016
R’000
2015
R’000
    Assets    
    Non-current assets    
2 323 216 2 153 451 Property, plant and equipment 233 234
15 23 Investment properties    
612 191 567 557 Intangible assets    
    Investment in subsidiaries 326 735 334 819
31 651 31 625 Investment in joint ventures    
5 657   Other non-current financial assets    
37 019 32 696 Deferred tax assets 77 77
3 009 749 2 785 352   327 045 335 130
    Current assets    
916 909 940 181 Inventories    
1 308 223 1 215 579 Trade and other receivables 603 605 522 335
16 184 17 530 Prepayments    
- 40 330 Income tax receivable 928 2 157
604 071 475 436 Cash and short-term deposits 21 871 40 015
2 845 387 2 689 056   626 404 564 507
10 907 429 Assets classified as held-for-sale - 429
5 866 043 5 474 837 Total assets 953 449 900 066
    Equity and liabilities    
    Equity    
9 516 9 387 Issued share capital 9 516 9 387
882 774 838 363 Share premium 882 774 838 363
74 873 72 880 Other reserves 2 169 10 252
24 147 (2 314) Foreign currency translation reserve    
2 412 - Cash flow hedge reserve    
1 871 690 1 653 022 Retained earnings 48 898 31 991
2 865 412 2 571 338 Equity attributable to equity holders of the parent 943 357 889 993
23 305 13 510 Non-controlling interests    
2 888 717 2 584 848 Total equity 943 357 889 993
    Liabilities    
    Non-current liabilities    
931 455 681 601 Interest-bearing loans and borrowings    
73 474 74 901 Employee-related obligations    
192 358 188 253 Deferred tax liability    
19 311 21 459 Trade and other payables    
2 199 2 716 Other non current financial liabilities    
1 218 797 968 930      
    Current liabilities    
1 363 332 1 330 385 Trade and other payables 10 092 10 073
343 015 573 576 Interest-bearing loans and borrowings    
25 612 2 670 Other current financial liabilities    
9 893 - Income tax payable    
16 677 14 428 Employee-related obligations    
1 758 529 1 921 059   10 092 10 073
2 977 326 2 889 989 Total liabilities 10 092 10 073
5 866 043 5 474 837 Total equity and liabilities 953 449 900 066

 

Consolidated statement of changes in equity

for the year ended 30 June 2016

GROUP
  Ordinary
share
capital
Ordinary
share
premium
Other
capital
reserves
Cash flow hedge reserve Foreign
currency
trans-
lation
reserve
Retained
earnings
Total Non-
controlling
interests
Total
equity
  R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Balance at 1 July 2014 9 124 734 414 283 225   (5 582) 1 231 089 2 252 270 20 471 2 272 741
Profit for the year           350 345 350 345 (4 684) 345 661
Other comprehensive income         3 268   3 268   3 268
Total comprehensive income         3 268 350 345 353 613 (4 684) 348 929
Share appreciation rights exercised 263 103 949 (18 468)     (64 132) 21 612   21 612
Share-based payment expense recognised     18 080       18 080   18 080
Other capital reserves transferred to retained earnings     (209 957)     209 957      
Acquisition of non-controlling interest in Lactolab (Pty) Ltd           (3 223) (3 223) (2 277) (5 500)
Dividends forfeited           610 610   610
Dividends declared and paid           (71 624) (71 624)   (71 624)
                   
Balance at 30 June 2015 9 387 838 363 72 880   (2 314) 1 653 022 2 571 338 13 510 2 584 848
Profit for the year           350 906 350 906 995 351 901
Other comprehensive income       2 412 26 461   28 873   28 873
Total comprehensive income       2 412 26 461 350 906 379 779 995 380 774
Share appreciation rights exercised 129 44 411 (11 709)     (23 638) 9 193   9 193
Share-based payment expense recognised     12 697       12 697   12 697
Initial recognition of call options     1 005       1 005   1 005
Non-controlling interest arising from business combinations               8 800 8 800
Dividends forfeited           155 155   155
Dividends declared and paid           (108 755) (108 755)   (108 755)
Balance at 30 June 2016 9 516 882 774 74 873 2 412 24 147 1 871 690 2 865 412 23 305 2 888 717

 

COMPANY
  Ordinary
share
capital
Ordinary
share
premium
Other
capital
reserves
Retained
earnings
Total
equity
  R’000 R’000 R’000 R’000 R’000
Balance at 1 July 2014 9 124 734 414 29 198 24 350 797 086
Profit for the year       78 177 78 177
Other comprehensive income          
Total comprehensive income       78 177 78 177
Share appreciation rights exercised 263 103 949 (18 468)   85 744
Dividends forfeited       610 610
Dividends declared and paid       (71 624) (71 624)
Balance at 30 June 2015 9 387 838 363 10 252 31 991 889 993
Profit for the year       125 507 125 507
Other comprehensive income          
Total comprehensive income       125 507 125 507
Share appreciation rights exercised 129 44 411 (8 083)   36 457
Dividends forfeited       155 155
Dividends declared and paid       (108 755) (108 755)
Balance at 30 June 2016 9 516 882 774 2 169 48 898 943 357

 

Consolidated statement of cash flows

for the year ended 30 June 2016

GROUP   COMPANY
2016
R’000
2015
R’000
  2016
R’000
2015
R’000
    Operating activities    
465 893 445 947 Profit before tax 135 432 88 607
465 893 445 947 Profit before tax 135 432 88 607
    Adjustments to reconcile profit before tax to net cash flow    
    Adjustment for non-cash items:    
166 941 160 490 Depreciation and impairment of property, plant and equipment 1 1
21 680 17 048 Amortisation and impairment of intangible assets    
8 132 Depreciation of investment properties    
(20 869) (38 950) (Profit)/Loss on disposal and scrapping of assets (521)  
21 036 - Impairment and scrapping of plant included in restructuring cost    
(9 075) 3 063 Unrealised loss on financial instruments    
(27 833) 2 999 Unrealised foreign exchange loss    
(1 721) (9 966) Realised foreign exchange (gain)/loss    
28 366 - Discount on acquisition of property, plant and equipment by Clover Waters    
38 - Discount on acquisition of property, plant and equipment by Clover Waters – recognised in equity    
1 120 3 282 Share of profit of joint venture (net of dividend paid)    
12 697 1 701 Movement in provisions    
122 964 18 080 Share appreciation rights recognised over vesting period    
    Other adjustments:    
122 964 83 105 Finance cost 14 56
(10 139) (9 041) Finance income (3 438) (2 784)
- - Dividends received (100 000) (50 000)
- (3 330) Share appreciation rights settled in cash    
(4 490) (1 582) Government grants    
(56 938) (106 254) Taxes paid (8 696) (11 263)
    Working capital adjustments    
24 269 (372 289) (Increase)/decrease in inventories    
(91 298) (193 922) (Increase)/decrease in trade and other receivables 13 426 (3 116)
30 799 159 672 Increase/(decrease) in trade and other payables 19 2 173
673 448 160 185 Net cash flow from operating activities 36 237 23 674

 

GROUP   COMPANY
2016
R’000
2015
R’000
  2016
R’000
2015
R’000
    Investing activities    
45 533 61 684 Proceeds from sale of property, plant and equipment and other assests 950 -
27 833 9 966 Realised foreign exchange gain/(loss)    
10 139 9 041 Interest received 3 438 2 784
(2 550) - Acquisition of controlling interest in Clover Good Hope Proprietary Limited    
(6 610) - Acquisition of controlling interest in Clover Frankies Proprietary Limited    
- (30 000) Acquisition of Dairybelle UHT Milk business    
- (107 131) Acquisition of Dairybelle Yoghurt business    
- (48 684) Acquisition of Nkunzi MilkyWay business    
- - Dividends received 50 000 50 000
16 097 38 055 Government grants received recognised against property, plant and equipment and expenses    
(366 665) (468 106) Capital expenditure: tangible assets    
(56 406) (21 647) Capital expenditure: intangible assets    
(332 629) (556 822) Net cash flows (used in)/from investing activities 54 388 52 784
    Financing activities    
(122 964) (83 105) Interest paid (14) (56)
(108 755) (71 624) Dividends paid (108 755) (71 624)
- (5 500) Non-controlling interest acquired in Lactolab (Pty) Ltd    
(254 646) (9 646) Repayment of borrowings    
273 939 378 326 Proceeds from borrowings    
(212 426) 218 097 Net cash flows from/(used in) financing activities (108 769) (71 680)
128 393 (178 540) Net (decrease)/increase in cash and cash equivalents (18 144) 4 778
242 87 Net foreign exchange difference    
475 436 653 889 Cash and cash equivalents at the beginning of the year 40 015 35 237
604 071 475 436 Cash and cash equivalents at the end of the year 21 871 40 015