Financial Overview

Six-Year Financial Review

Summarised results for the year Increase/(decrease) 
2017 vs 2016
  2017  
R’000 
  2016  
R’000 
2015  
R’000 
*2014 
R’000 
*2013 
R’000 
*2012 
R’000 
Revenue 2,40% 10 058 599 9 818 717 9 266 251 8 530 237  7 832 911 7 223 863
Operating profit 44,30% 314 479 564 450 509 072 282 276  371 232 371 232
Net financing cost              
Current and long-term liabilities 18% (113 118) (112 825) (74 064) (57 809)) (46 717) (1 855)
Debt portion of preference share capital –  –  –  –  - (22 007)
Profit before tax from continuing operations 59,80% 181 361 451 625 435 008  224 467 324 907 347 370
Taxes 63,90% (41 105) (113 992) (100 286) (49 791) (99 022) (137 654)
Share of profit of a joint ventures 29,50% 18 486 14 268 10 939  14 306  13 974  – 
Profit after tax from discontinued operations –  –  –  –  – 
Non-controlling interest (51,40%) (484) (995) (4 684) (2 316) (1 233) (4 426)
Profit attributable to equity holders of the parent 54,90% 158 258 350 906 350 345 1 205 290 179 599
Headline earnings attributable to equity holders of the parent 65,90% 121 617 356 594 319 343 214 894 207 800 175 177

 

Normalised earnings 2017 
R’000 
2016 
R’000 
2015 
R’000 
2014 
R’000 
2013 
R’000 
2012 
R’000 
Operating profit 314 479 564 450 509 072 282 276 371 232 371 232
Adjusted for exceptional items:            
(Profit)/loss on sale and scrapping of property plant and equipment and other assets (33 404) (20 869) (38 950)  5102 (11 680) (878)
Gain on fair valuing of existing investment in joint venture due to acquiring control –  –  (16
Profit on the sale of Lactolab (9 270) – 
Discount on acquisition of PPE by Clover Waters through issue of shares –  (20 716)
Retrenchment costs 46 779 8 493 8 156  7 174 17 184 3 629
​Bargain purchase at acquisition of stake in Clover Good Hope​​ (1721) ​​–
Legal and professional services costs associated with the listing 75  141  49
             
Release of foreign currency translation reserve in abandonment of foreign operations 28 366        
Other restructuring cost 1 319  –​ 241  8 721  18 517 5 944
Normalised operating profit 319 903 578 719 478 594282   378 948 379 927
Net financing cost (133 118) (112 825) (74 064) (57 809) (46 716) (23 862)
Tax expense            
Total tax expense (41 105) (113 992) (100 286) (49 791) (99 022) (137 65)
Other non-recurring tax adjustments –  –  –  18 254
STC paid on capital restructuring –  –  – 
Taxation adjustment on exceptional items (7 434) (2 466) (5 575) (4 286) (8 453) (2 745)
Share of profit of joint ventures after tax 18 486 14 268 10 939  14 306  13 974 – 
Non-controlling interest (484) (995) 4 684 (2 316) (1 233) (4 426)
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 156 248 362 709 325 443  188 276 237 497 229 493

 

* From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect. The figures for 2012 have not been restated.
   

 

  2017
R’000 
2016
R’000 
2015 
R’000 
**2014 
R’000 
**2013 
R’000 
**2012 
R’000 
Dividends            
Equity dividends – ordinary shares 114 802 108 755 71 642  69 342  41 912 53 734
Equity dividends – preference shares
Preference dividends recognised as interest
20 346 22 007
Earnings and dividends per share Cents Cents Cents Cents Cents Cents
Equity dividends per ordinary share – Interim 24,21 24,21 22,6  16,0  10,0  15,0 
Equity dividends per ordinary share – Final 40,94 33,40 16,0  22,0  13,40 
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
Earnings per ordinary share 83,1 185,9 190,4  102,3 133,1 114,6
Diluted earnings per ordinary shares 82,3 181,8 182,0  97,3 123,8 107,4
Headline earnings per ordinary share 63,9 188,9 173,6  102,7 119,9 116,0
Diluted headline earnings per ordinary share 63,2 184,7 165,9  97,8 111,5 108,7
Normalised earnings per share, calculated by dividing the normalised profit by the weighted average number of ordinary shares 82,0 192,2 176,9  103,2 132,5 128,1
Summarised statement of financial position R’000 R’000  R’000  R’000  R’000  R’000 
Non-current assets 3 120 227 2 752 656 2 302 052 2 302 0 1 997 482 1 526 306
Deferred taxation asset 45 496 37 019 32 696  8 919  6 722 492
Current assets 2 882 420 2 856 294 2 689 485  2 298 621 2 413 733 2 336 745
Total assets 6 048 143 5 886 043 5 474 837  4 609 592 4 417 937 3 863 543
Shareholders’ funds 2 894 862 2 865 412 2 571 338  2 252 270 2 113 116 1 894 244
Non-controlling interest (15 179) 23 305 13 510  20 471  2 309 1 796
Non-current portion of interest-bearing borrowings 767 621 931 455 681 601  662 357  666 640 21 686
Non-current portion of provisions 82 595 73 474 74 901  67 615 60 814 661 637
Non-current portion of trade and other payables 25 492 19 311 21 459  4 351  9 267 6 904
Other non-current financial liabilities 66 771 2 199 2 716
Deferred taxation liability 221 065 192 385 188 253  179 023  137 313 116 950
Current portion of interest-bearing borrowings 714 304 343 015 574 576  214 495  172 646 421 376
Current liabilities excluding interest-bearing borrowings 1 290 612 1 415 514 1 350 199  1 209 010 1 255 832 1 338 95
0Total equity and liabilities 6 048 143 5 866 043 5 474 837 4 609 592 4 417 937 3 863 543
             
Net assets 2 879 682 2 888 717 2 584 848 2 272 741 2 115 425 1 896 040
Replacement value of property, plant and machinery (@) 9 771 296 9 116 408 7 577 153 7 577 153 6 106 300 5 746 800

 

* Replacement value of property, plant and machinery is determined by an external valuator.
** From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect. The figures for 2012 have not been restated.

Number of shares in issue 2017 2016 2015 *2014 *2013 *2012
Number of ordinary shares in issue at year-end 1190 835 364 190 314 350 187 731 138 182 478 589 181 218 149 179 111 867
Weighted average number of ordinary shares 190 433 237 188 733 409 183 989 596 182 478 589 179 267 674 179 111 867
Weighted average number of ordinary shares for calculation of diluted earnings 192 358 073 193 021 978 192 466 775 191 757 408 192 750 186 191 127 152
Number of preference shares in issue at year-end –  –  –  89 442 022
Weighted average number of preference shares –  –  –  89 442 022
Cash flow R’000 R’000 R’000  R’000  R’000  R’000 
Cash flow from operating activities 6276 956 673 448 160 185 403 067  219 198 417 910
Cash (used in)/from investment activities (277 708) (332 629) (556 822) (351 734) (515 811) (256 150 )
Cash flow/(outflow) from financing activities (57 982) (212 426) 218 097 (97 780)  297 159 272 951
Cash flow from operating activities per share (cents) 145,4 356,8 87,1 220,9  122,3 233,3 
Ratios and returns % % % % % %
Operating profit to revenue 3,1 5,7 5,5  3,3  4,7 5,1
Normalised operating profit 3,2 5,9 5,2  3,3  4,8 5,3
Return on net assets 6,8 13,3 13,5  8,6  13,1 14,9
Return on net assets excluding exceptional items 6,9 13,5 12,7 8,6 13,4 15,2
Return on equity holders’ funds 5,5 12,9 14,5 8,6  11,9 11,3
Return on equity holders’ funds excluding exceptional items 5,4 13,3 13,5  8,6  11,9 12,6
Gearing percentage (net of cash) 32,5 23,2 30,2  9,8 6,4 -14,2
Effective tax rate 20,6 24,5 22,5  20,9 29,3 39,6
  Times Times Times Times Times Times
Net asset turn 4,4 4,5 5,0  5,6 6,2 6,8
Current ratio 1,4 1,6 1,4 1,6 1,7 13
Employees statistics Number Number Number Number Number Number
Average number of employees 8 796 8 456 7 177  6 393  6 519 6 555
  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  1 201,6 1 102
Operating profit per employee 35,8 66,8 70,9 44,2  57 57
Normalised operating profit 36,4 68,4 66,7  44,2  58 58
Average net assets per employee 327,9 323,6 338,4  343,2 307,7 278

 

* From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect. The figures for 2012 have not been restated.