Financial Overview

Consolidated Statements

Consolidated statement of comprehensive income

for the year ended 30 June 2017

GROUP   COMPANY
2017
R’000
2016
R’000
  2017
R’000
2016
R’000
9 401 842 9 102 469 Sales of products    
641 499 684 496 Rendering of services 4 418
11 907 22 769 Sale of raw milk    
3 351 8 983 Rental income    
10 058 599 9 818 717 Revenue 84 418 100 000
(7 333 041) (7 025 497) Cost of sales    
2 725 558 2 793 220 Gross profit 84 418 100 000
60 040 73 688 Other operating income 47 394 44 945
Dividends received 80 000 100 000
(2 089 364) (1 944 333) Selling and distribution costs    
(284 721) (300 461) Administrative expenses (12 627) (12 937)
(48 098) (8 493) Restructuring expenses    
(48 936) (49 171) Other operating expenses    
314 479 564 450 Operating profit 119 185 132 008
12 647 10 139 Finance income 5 097  3 438
(145 765) (122 964) Finance cost (13) (14)
18 487 14 268 Share of profit in a joint venture after tax    
199 847 465 893 Profit before tax 124 269  135 432
(41 105) (113 992) Taxes (13 544) (9 925)
158 742 351 901 Profit for the year 110 725 125 507
         
    Other comprehensive income to be reclassified to profit and loss in future    
(14 510) 26 461 Exchange differences on translations of foreign operations    
141 820 380 774 Total comprehensive income for the year, net of tax 110 725 125 507
    Profit attributable to:    
350 906 350 906 Equity holders of the parent 110 725 125 507
995 995 Non-controlling interests    
351 901 351 901   110 725 125 507
    Total comprehensive income attributed to:    
379 779 379 779 Equity holders of the parent 110 725 125 507
995 995 Non-controlling interests    
380 774 380 774   110 725 125 507
    Earnings per share (cents)    
185.9 185,9 Basic profit for the year attributable to ordinary equity holders of the parent    
181.8 181,1 Diluted profit for the year attributable to ordinary equity holders of the parent    

 

Consolidated statement of financial position

at 30 June 2017

GROUP   COMPANY
2017
R’000
2016
R’000
  2017
R’000
2016
R’000
    Assets    
    Non-current assets    
2 427 444 2 323 216 Property, plant and equipment 232 233
9 15 Investment properties    
650 663 612 191 Intangible assets    
    Investment in subsidiaries 326 735 326 735
38 946  31 651 Investment in joint ventures    
3 165 5 657 Other non-current financial assets    
45 496 37 019 Deferred tax assets 77 77
3 165 723 3 009 749   327 044 327 045
    Current assets    
964 630 916 909  Inventories    
1 341 311 1 308 223 Trade and other receivables 563 233 603 605
19 844 16 184 Prepayments    
7 165 - Income tax receivable - 928
544 863 604 071 Cash and short-term deposits 63 241 21 871
2 877 813 2 845 387   626 474 626 404
4 607 10 907 Assets classified as held-for-sale - -
6 048 143 5 866 043 Total assets 953 518 953 449
    Equity and liabilities    
    Equity    
9 542 9 516 Issued share capital 9 542 9 516
892 692 882 774 Share premium 892 692 882 774
78 642 74 873 Other reserves 2 169 2 196
9 637 24 147 Foreign currency translation reserve    
- 2 412 Cash flow hedge reserve    
1 904 349 1 871 690 Retained earnings 35 670 48 898
2 894 862 2 865 412 Equity attributable to equity holders of the parent 940 073 943 357
(15 179) 23 305 Non-controlling interests    
2 879 683 2 888 717 Total equity 940 073 943 357
    Liabilities    
    Non-current liabilities    
767 621  931 455 Interest-bearing loans and borrowings    
57 088 - Employee-related obligations    
82 595 73 474 Deferred tax liability    
221 065 192 358 Trade and other payables    
9 683 2 199 Other non current financial liabilities    
1 163 544 1 218 797      
    Current liabilities    
1 274 700 1 363 332 Trade and other payables 10 013 10 092
714 304 343 015 Interest-bearing loans and borrowings    
6 141 25 612 Other current financial liabilities    
- 9 893 Income tax payable 3 432  
9771 16 667 Employee-related obligations    
2 004 916 1 758 529   13 445 10 092
3 168 460 2 977 326 Total liabilities 13 445 10 092
6 048 143 5 866 043 Total equity and liabilities 953 518 953 449

 

Consolidated statement of changes in equity

for the year ended 30 June 2017

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 2015 9 387 838 363 72 880   (2 314) 1 653 022 2 571 388 13 510 2 584 848
Profit for the year           350 906 350 906 995 351 901
Other comprehensive income         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 (11709) 2 412   (23 638) 9 193   9 193
Share-based payment expense recognised     12 697       12 697   12 697
Initial recognition of call options     1 005       1005   1005
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
Profit for the year           158 258 158 258 484 158 742
Other comprehensive income       (2 412) (14 510)   (16 922) - (16 922)
Total comprehensive income       (2 412) (114 510) 158 258 141 336 484 141 820
Share appreciation rights exercised 2 729 (1 651)     639 (281)   (281)
Non-cash distribuition 24 9 189       (9 213) -   -
Non-contolling interest put option movement               (57 088) (57 088)
Acquisition of non-controlling interest           (2 730) (2 730) (5 624) (8 354)
Share-based payment expense recognised     5 865       5 865   5 865
Call option in Frankies recognised     (445)     455 -   -
Non-controlling interest arising from business combinations               24 234 24 234
Dividends Forfeited           62 62   62
Dividends declared and paid           (114 802) (114 802)   (114 802)
Dividends subsidiaries               (490) (490)
Balance at 30 June 2017 9542 892 692 78 642 - 9 637 1 904 349 2 894 862 (15 179) 2 879 683

 

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 2015 9 387 838 363 10 252 31 991 889 993
Profit for the year       125 507 12 507
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
Profit for the year       110 725 110 725
Other comprehensive income       - -
Total comprehensive income       110 725 110 725
Ordinary  shares used 24 9189   (9 213) -
Share appreciation rights exercised
2 729     731
Dividends forfeited
      62 62
Dividends declared and paid
      (114 802) (114 802)
Balance at 30 June 2017
9 542 892 262 2 169 35 670 940 073

 

Consolidated statement of cash flows

for the year ended 30 June 2016

GROUP   COMPANY
2017
R’000
2016
R’000
  2017
R’000
2016
R’000
    Operating activities    
199 847 465 893 Profit before tax 124 269 135 432
465 893 465 893 Profit before tax 124 269 135 432
    Adjustments to reconcile profit before tax to net cash flow    
    Adjustment for non-cash items:    
183 366 166 941 Depreciation and impairment of property, plant and equipment 1 1
22 816 21 680 Amortisation and impairment of intangible assets    
6 8
Depreciation of investment properties
   
(1 422) - Fair value adjustments on call options    
4 100 - Software licences written off    
(9 270) - Profit on the sale of Lactolab    
336 - Deconsolidation of Lactolab    
(33 404) (20 869) Profit on disposal and scrapping of assets - (521)
(15 889) 21 036 Unrealised loss on financial instruments    
(9 321) (9 075) Unrealised foreign exchange loss    
(11 232) (27 833) Realised foreign exchange (gain)/loss    
- (1 721) Bargain purchase on the investment in Clover Good Hope    
- 28 366 Release of foreign currency translation reserve in abandonment of foreign operation    
(7 295) 38 Share of profit of joint venture (net of dividend paid)    
2 213 1 120 Movement in provisions    
5 865 12 697 Share appreciation rights expense recognised over vesting period    
    Other adjustments:    
145 765 122 964 Finance cost 13 14
(12 647) (10 139) Finance income (5 097) (3 438)
- - Dividends received (80 000) (100 000)
- - Share appreciation rights expense settled in cash    
- (4 490) Government grants    
(47 115) (56 938) Taxes paid (9 184) (8 696)
    Working capital adjustments    
(43 578) 24 269  (Increase)/decrease in inventories    
(36 747) (91 298) (Increase)/decrease in trade and other receivables (8 835) (13 426)
(81  902) 30 799 Increase/(decrease) in trade and other payables (70) 19
276 956 673 448 Net cash flow from operating activities 21 088 36 237

 

GROUP   COMPANY
2017
R’000
2016
R’000
  2017
R’000
2016
R’000
    Investing activities    
58 941 45 533 Proceeds from sale of property, plant and equipment and other assests-   950
(11 232) 27 833 Realised foreign exchange gain/(loss)    
12 647 10 138 Interest received 5 097 3 438
- (2 550) Acquisition of controlling interest in Clover Good Hope Proprietary Limited    
- (6 610) Acquisition of controlling interest in Clover Frankies Proprietary Limited    
10 275 - Disposal of controlling interest in Lactolab Proprietary Limited    
(29 639) - Acquisition of controlling interest in Clover Pride Proprietary Limited    
 3854 - Cancellation of a finance lease    
- - Dividends received 130 000 50 000
- 16 097 Government grants received recognised against property, plant and equipment and expenses    
(316 883) (366 665) Capital expenditure: tangible assets    
(5 671) (56 406) Capital expenditure: intangible assets    
(277 708) (332 629) Net cash flows (used in)/from investing activities 135 097 54 388
    Financing activities    
(145 765) (122 964) Interest paid (13) (14)
(115 230) (108 755) Dividends paid (114 802) (108 755)
(4 440) - Non-controlling interest acquired in Clover Frankies Proprietary Limited    
(3 854)   Cancellation of a finance lease    
(285 668) (254 646) Repayment of borrowings    
496 975 273 939 Proceeds from borrowings    
(57 982) (212 426) Net cash flows from/(used in) financing activities (114 815) (108 769)
(58 734) (128 393) Net (decrease)/increase in cash and cash equivalents 41 370 (18 144)
(474) 242 Net foreign exchange difference    
604 071 475 436 Cash and cash equivalents at the beginning of the year 21 871 40 015
544 863 604 071 Cash and cash equivalents at the end of the year 63 341 21 871