Financial Overview

Six-Year Financial Review

Summarised results for the year Increase/(decrease) 
2016 vs 2015
  2016  
R’000 
  2015  
R’000 
2014  
R’000 
**2013 
R’000 
**2012 
R’000 
**2011 
R’000 
Revenue 6,0% 9 818 717 9 266 251 8 530 237 7 832 911  7 223 863 6 542 321
Operating profit 10,9% 564 450 509 072 282 276 371 624  371 232 319 019
Net financing cost              
Current and long-term liabilities 52,3% (112 825) (74 064) (57 809 (46 717) (1 855) (16 081)
Debt portion of preference share capital –  –  –  –  (22 007) (21 359)
Profit before tax from continuing operations 3,8% 451 625 435 008 224 467  324 907 347 370 281 579
Taxes 13,7% (113 992) (100 286) (49 791) (99 022) (137 654) (97 534)
Share of profit of a joint ventures 30,4% 14 268 10 939 14 306  13 974  –  – 
Profit after tax from discontinued operations –  –  –  –  – 
Non-controlling interest (121,2%) (995) 4 684 (2 316) (1 233) (4 426) (4 446)
Profit attributable to equity holders of the parent 0,2% 350 906 350 345 186 666 238 626 205 290 179 599
Headline earnings attributable to equity holders of the parent 11,7% 356 594 319 343 187 464 214 894 207 800 175 177

 

Normalised earnings 2016 
R’000 
2015 
R’000 
2014 
R’000 
2013 
R’000 
2012 
R’000 
2011 
R’000 
Operating profit 564 450 509 072 282 276 371 624 371 232 319 019
Adjusted for exceptional items:            
(Profit)/loss on sale and scrapping of property plant and equipment and other assets (20 869) (38 950) 5 102  (11 680) (878) (7 277)
Gain on fair valuing of existing investment in joint venture due to acquiring control –  –  (16 747)
Profit on the sale of Boksburg factory –  – 
Discount on acquisition of PPE by Clover Waters through issue of shares –  (20 716)
Retrenchment costs 8 493 8 156 7 174  17 184 3 629 6 628
Option fee paid to HCI on capital restructuring –  –  – 
Legal and professional services costs associated with the listing 75 141  49  8 499
Legal and professional services costs associated with the capital restructuring –  –  – 
SAR bonuses paid to Executives on capital restructuring –  –  – 
Release of foreign currency translation reserve in abandonment of foreign operations 28 366          
Other restructuring cost –  241 8 721  18 517  5 944 1 780
Normalised operating profit 578 719 478 594 282 698 378 947 379 927 328 649
Net financing cost (112 825) (74 064) (57 809) (46 716) (23 862) (37 440)
Tax expense            
Total tax expense (113 992) (100 286) (49 791) (99 022) (137 654) (97 534)
Other non-recurring tax adjustments –  –  –  18 254
STC paid on capital restructuring –  –  – 
Taxation adjustment on exceptional items (2 466) 5 575 (4 286) (8 453) (2 745) (1 845)
Share of profit of joint ventures after tax 14 268 10 939 14 306  13 974  –  – 
Non-controlling interest (995) 4 684 (2 316) (1 233) (4 426) (4 446)
Non-controlling interest’s portion in discount on acquisition of PPE by Clover Waters through issue of shares –  –  6 215  –  –  – 
Non-controlling interest’s portion of restructuring cost of subsidiary –  –  (741) –  –  – 
Normalised profit attributable to equity holders of the parent 362 709 325 443 188 276  237 497 229 493 187 384

 

@ During the first six months of the prior year raw milk sales to Danone Clover, an associated company at the time, were set off against cost of sales. To facilitate comparability to the current year that period’s sales are now shown as revenue and the cost of sales and revenue figures were regrouped accordingly. It has no effect on profits.
* Includes R337,7 million (R227,1 million after tax) profit on sale of Danone Clover.
** From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect, the figures from 2010 to 2012 have not been restated.

 

  2016
R’000 
2015
R’000 
2014 
R’000 
***2013 
R’000 
***2012 
R’000 
***2011 
R’000 
Dividends            
Equity dividends – ordinary shares 108 755 71 624 69 342  41 912  53 734 58 720
Equity dividends – preference shares
Preference dividends recognised as interest 20 346 22 007 21 359
Earnings and dividends per share Cents Cents Cents Cents Cents Cents
Equity dividends per ordinary share – Interim 24,21 22,6 16,0  10,0  15,0  10,0 
Equity dividends per ordinary share – Final 40,94 16,0 22,0  13,4  15,0 
Special dividend on the buy-back of the equity rights of preference shares per preference share
Preference dividend recognised as interest per preference share 22,7  24,6 23,9
Earnings per ordinary share 185,9 190,4 102,3  133,1 114,6 116,7
Diluted earnings per ordinary shares 181,8 182,0 97,3  123,8 107,4 108,9
Headline earnings per ordinary share 188,9 173,6 102,7  119,9 116,0 113,8
Diluted headline earnings per ordinary share 184,7 165,9 97,8  111,5 108,7 106,2
Normalised earnings per share, calculated by dividing the normalised profit by the weighted average number of ordinary shares 192,2 176,9 103,2  132,5 128,1 121,8
Summarised statement of financial position R’000 R’000  R’000  R’000  R’000  R’000 
Non-current assets 2 972 730 2 752 656 2 302 052 1 997 482 1 526 306 1 361 355
Deferred taxation asset 37 019 32 696 8 919  6 722  492 3 262
Current assets 2 856 294 2 689 485 2 298 621  2 413 733 2 336 745 2 180 874
Total assets 5 866 043 5 474 837 4 609 592  4 417 937 3 863 543 3 545 491
Shareholders’ funds 2 865 412 2 571 338 2 252 270  2 113 116 1 894 244 1 742 362
Non-controlling interest 23 305 13 510 20 471  2 309  1 796 9 443
Non-current portion of interest-bearing borrowings 931 455 681 601 662 357  666 640  21 686 432 833
Non-current portion of provisions 73 474 74 901 67 615  60 814  61 637 62 522
Non-current portion of trade and other payables 19 311 21 459 4 351  9 267  6 904 13 357
Other non-current financial liabilities 2 199 2 716
Deferred taxation liability 192 358 188 253 179 023  137 313  116 950 32 015
Current portion of interest-bearing borrowings 343 015 573 576 214 495  172 646  421 376 173 828
Current liabilities excluding interest-bearing borrowings 1 415 514 1 350 199 1 209 010  1 255 832 1 338 950 1 079 131
Total equity and liabilities 5 866 043 5 474 837 4 609 592  4 417 937 3 863 543 3 545 491
             
Net assets 2 888 717 2 584 848 2 272 741 2 115 425 1 896 040 1 751 805
Replacement value of property, plant and machinery (@) 9 116 408 7 577 153 7 577 153 6 106 300 5 746 800 5 445 700

 

@ Replacement value of property, plant and machinery is determined by an external valuator.
* The earnings per share from continuing operations adjusted for exceptional items for year 2010 is presented for illustrative purposes only to indicate what the earnings per share would have been if ordinary shareholders had been entitled to all equity earnings and if the two-for-one share split (4 November 2010) is taken into consideration.
** Earnings per share for the 2010 financial year has been recalculated to account for the two-for-one share split.
*** From 2014 all joint ventures were equity accounted.The figures for 2013 were restated to show this effect. The figures from 2010 to 2012 have not been restated.

 

Number of shares in issue 2016 2015 2014 **2013 **2012 **2011
Number of ordinary shares in issue at year-end 190 314 350 187 731 138 182 478 589 181 218 149 179 111 867 179 111 867
Weighted average number of ordinary shares 188 733 409 183 989 596 182 478 589 179 267 674 179 111 867 153 882 447
Weighted average number of ordinary shares for calculation of diluted earnings 193 021 978 192 466 775 191 767 408 192 750 186 191 127 152 164 890 519
Number of preference shares in issue at year-end –  –  –  89 442 022 89 442 022
Weighted average number of preference shares –  –  –  89 442 022 89 442 022
Cash flow R’000 R’000 R’000  R’000  R’000  R’000 
Cash flow from operating activities 673 448 160 185 403 067 219 198  417 910 256 927
Cash (used in)/from investment activities (332 629) (556 822) (351 734) (515 811) (256 150) (253 323)
Cash flow/(outflow) from financing activities (212 426) 218 097 (97 780) 297 159  161 760 3 604
Cash flow from operating activities per share (cents) 356,8 87,1 220,9  122,3  233,3 167,0
Ratios and returns % % % % % %
Operating profit to revenue 5,7 5,5 3,3  4,7  5,1 4,9
Normalised operating profit 5,9 5,2 3,3  4,8  5,3 5,0
Return on net assets 13,2 13,5 8,6  13,1  14,9 15,0
Return on net assets excluding exceptional items 13,5 12,7 8,6  13,4  15,2 15,4
Return on equity holders’ funds 12,9 14,5 8,6  11,9  11,3 12,9
Return on equity holders’ funds excluding exceptional items 13,3 13,5 8,6  11,9  12,6 13,7
Gearing percentage (net of cash) 23,2 30,2 9,8  6,4  (14,2) (12,4)
Effective tax rate 24,5 22,5 20,9  29,3  39,6 34,6
  Times Times Times Times Times Times
Net asset turn 4,5 5,0 5,6  6,2  6,8 8,3
Current ratio 1,6 1,6 1,6  1,7  1,3 1,7
Employees statistics Number Number Number Number Number Number
Average number of employees 8 456 7 177 6 393  6 519  6 555 6 353
  R’000 R’000 R’000  R’000  R’000  R’000 
Revenue per employee 1 161,2 1 291,1 1 334,3  1 201,6  1 102 1 030
Operating profit per employee 66,8 70,9 44,2  57,0  57 50
Normalised operating profit 68,4 66,7 44,2  58,0  58 52
Average net assets per employee 323,6 338,4 343,2  307,7  278 223

 

# The number of ordinary shares have been adjusted for the two-for-one share split (4 November 2010).
* Includes R337,7 million (R227,1 million after tax) profit on sale of associate Danone Clover.
** From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect. The figures from 2010 to 2012 have not been restated.

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