6-Year financial review

Summarised results for the year

2012

2011

2010

2009

2008

2007

Revenue

7 223,9

6 542,3

^@ 6 161,5

⁺ 5 475,8

5 718,3

4 712,5

Revenue Danone Clover

–

682,7

521,6

Revenue Excluding Danone Clover

7 223,9

6 542,3

6 161,5

5 475,8

5 035,6

4 190,9

Operating profit

371,2

319,0

^*** 559,0

^** 664,3

297,2

^* 357,0

Net financing cost

Current and non-current liabilities

(1,8)

(16,1)

(41,2)

(103,5)

(90,7)

(53,7)

Debt portion of preference share capital

(22,0)

(21,4)

(22,3)

(32,2)

(30,4)

(22,0)

Profit/(loss) before tax from continuing operations

347,4

281,5

495,5

528,6

176,1

281,3

Taxes

(137,7)

(97,5)

(191,7)

(29,2)

(50,5)

(72,7)

Profit after tax from discontinued operations

–

32,1

39,6

–

Non-controlling interest

(4,4)

(4,4)

(5,1)

(11,7)

(5,7)

(41,5)

Profit/(loss) attributable to equity holders of the parent

205,3

179,6

^*** 330,8

^** 527,3

119,9

^* 167,1

Headline earnings attributable to equity holders of the parent company

207,8

175,2

19,0

(104,3)

116,3

59,9

Normalised earnigs

Operating profit

371,2

319,0

559,0

664,3

297,2

357,0

Adjusted for exceptional items:

(Profit)/loss on sale and scrapping of property, plant and equipment

(0,9)

(7,3)

0,9

(3,8)

(5,1)

5,5

Profit on the sale of Boksburg factory

–

(50,8)

–

Profit on sale of Ultra Mel Custard business

–

(111,1)

Profit on deconsolidation of Danone Clover

–

(637,5)

–

Profit on sale of Danone Clover

–

(337,7)

–

Retrenchment costs

3,6

6,6

84,9

17,2

10,4

14,2

Option fee paid to HCI on capital restructuring

–

11,4

–

Legal and professional services costs associated with the listing

–

8,5

–

Legal and professional services costs associated with the capital restructuring

–

5,3

–

SAR bonuses paid to Executives on capital restructuring

–

37,1

–

Other restructuring cost

6,0

1,8

10,7

8,4

1,1

1,6

Normalised Operating Profit

379,9

328,6

320,8

48,6

303,6

267,2

During the first six months of the 2010 financial 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.

Following the sale of the Group’s interest in Danone Clover, the Group’s share of Danone Clover’s income was classified as income from discontinued operations. The 2009 comparative figures were restated accordingly.

Includes R111 million profit (R103 million after tax) on sale of the Ultra Mel Custard business.

^**

Includes R637,5 million (R599,5 million after tax) profit on deconsolidiation of Danone Clover.

^***

Includes R337,7 million (R227,1 million after tax) profit on sale of Danone Clover.

2012

2011

2010

2009

2008

2007

Normalised earnings

Net financing cost

(23,9)

(37,4)

(63,5)

(135,7)

(121,1)

(75,8)

Tax expense

Total tax expense

(137,7)

(97,5)

(191,7)

(29,2)

(50,5)

(72,7)

STC paid on capital restructuring

52,2

–

Taxation adjustment on exceptional items

(2,6)

(1,9)

69,8

33,1

(2,6)

1,4

Other non-recurring tax adjustments

18,3

Non-controlling interest

(4,4)

(4,4)

(5,1)

(11,7)

(5,7)

(41,5)

Normalised profit attributable to equity holders of the parent

229,5

187,4

182,5

(94,9)

123,7

78,6

Dividends

Equity dividends – ordinary shares

53,7

58,7

–

1,0

0,6

0,3

Equity dividends – preference shares

–

370,0

29,0

17,8

9,2

Preference dividends recognised as interest

22,0

21,4

22,3

32,2

30,4

22,0

Earnings and dividends per share

Cents

Equity dividends per ordinary share

30,0

43,0

–

1,1

0,7

0,4

Equity dividends per preference share

–

33,5

20,5

10,7

Special dividend on the buy-back of equity rights of preference shares per preference share

–

413,7

–

Preference dividend recognised as interest per preference share

24,6

23,9

24,9

37,3

35,2

25,5

Earnings per ordinary share

114,6

116,7

^** 214,0

^*** 22,3

^*** 5,2

^*** 8,3

Diluted earnings per ordinary share

107,4

108,9

^** 214,0

^*** 22,3

^*** 5,2

^*** 7,1

Headline earnings per ordinary share

116,0

113,8

^** 33,1

^*** (82,2)

^*** 150,2

^*** 89,2

Diluted headline earnings per ordinary share

108,7

106,2

^** 33,1

^*** (82,2)

^*** 150,2

^*** 89,2

Normalised earnings/(loss) per share, calculated by dividing the normalised profit/(loss) by the weighted average number of ordinary shares net of treasury shares

128,1

121,8

^* 118,1

^* (120,6)

^* 159,9

^* 117,1

Summarised statement of financial position

Non-current assets

1 526,3

1 361,4

1 202,5

1 823,7

1 361,3

1 206,0

Deferred taxation asset

0,5

3,2

18,7

110,4

104,8

71,1

Current assets

2 336,7

2 180,9

1 710,9

1 651,4

1 908,1

1 249,4

Total assets

3 863,5

3 545,5

2 932,1

3 585,5

3 374,2

2 526,5

Shareholders’ funds

1 894,2

1 742,4

1 048,4

1 440,1

938,6

829,0

Non-controlling Interest

1,8

9,4

28,1

40,9

48,3

28,5

Non-current portion of interest-bearing borrowings

21,7

432,8

592,5

761,4

657,0

566,9

Non-current portion of provisions

61,6

62,5

50,4

60,5

62,9

64,0

Non-current portion of other payables

6,9

13,4

6,3

–

Deferred taxation liability

117,0

32,0

6,4

6,3

28,6

15,4

Current portion of interest-bearing borrowings

421,4

173,8

66,9

234,8

517,6

135,4

Current liabilities

1 338,9

1 079,2

1 133,1

1 041,5

1 121,2

887,3

Total equity and liabilities

3 863,5

3 545,5

2 932,1

3 585,5

3 374,2

2 526,5

The earnings/(loss) per share from continuing operations adjusted for exceptional items for years 2007 to 2010 are 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 2 for 1 share split (4 November 2010) is taken into consideration.

^**

Earnings per share for the 2010 financial year has been recalculated to account for the 2 for 1 share split.

^***

Earnings per share has not been adjusted for the 2 for 1 share split as at 4 November 2010.

A list of all definitions used in the above calculation is set out in note 3.

2012

2011

2010

2009

2008

2007

Net assets

1 896,0

1 751,8

1 076,5

1 481,0

986,9

857,5

Replacement value of property, plant and machinery^@

5 746,8

5 445,7

5 112,8

4 927,0

4 521,6

4 383,2

Number of shares in issue

‘000

Number of ordinary shares in issue at year-end

179 111,9

179 111,9

^#123 850,0

88 485,3

76 907,8

Weighted average number of ordinary shares net of treasury shares

179 111,9

153 882,4

^#154 595,4

78 711,5

77 411,0

67 134,0

Number of preference shares in issue at year–end

89 442,0

89 442,0

86 492,6

Weighted average number of preference shares net of treasury shares

89 442,0

89 442,0

87 516,2

85 442,0

85 517,0

83 888,6

Weighted average number of ordinary shares for calculation of diluted earnings

191 127,2

164 890,5

^#154 595,4

78 711,5

77 411,0

78 711,5

Cash flow

Cash flow from/(used in) operating activities

416,4

256,9

347,1

79,7

(113,5)

186,3

Cash flow (used in)/from investment activities

(256,2)

(253,3)

1 005,1

(186,4)

(213,1)

(311,9)

Net cash inflow/(outflow) before financing activities

160,2

3,6

1 352,2

(106,7)

(326,6)

(125,5)

Cash generated from/(utilised in) operating activities per share (cents)

234.0

167.0

^#224,5

101,3

(146,6)

277,7

Ratios and returns

Operating profit to revenue

5,1

4,9

^*** 9,1

^** 12,1

5,2

^* 7,6

Normalised operating profit

5,3

5,0

5,2

1,0

5,3

5,7

Return on net assets

14,9

15,0

^*** 25,7

^** 27,7

15,3

^* 23,6

Return on net assets excluding exceptional items

15,2

15,4

14,8

2,0

15,6

17,7

Return on equity holders’ funds

11,3

12,9

^*** 26,6

^** 44,3

13,6

^* 22,9

Return on equity holders’ funds excluding exceptional items

12,6

13,7

15,1

(7,0)

14,6

16,5

Gearing percentage

(14,2)

(12,4)

21,4

48,8

67,9

43,1

Effective tax rate

39,6

34,7

38,7

5,5

28,7

25,9

Times

Net asset turn

6,8

8,3

6,5

10,9

10,5

Current ratio

1,3

1,7

1,4

1,3

1,2

Employee statistics

Number

Average number of permanent employees

6 555

6 353

6 362

6 579

6 662

6 776

R’000

Revenue per employee

1 102,0

1 029,8

^*** 942,4

^** 832,3

858,3

^* 695,5

Operating profit per employee

56,6

50,2

^*** 87,9

^** 101,0

44,6

^* 52,7

Normalised operating profit

58,0

51,7

50,4

7,4

45,6

39,4

Net assets per employee

278,2

222,6

201,0

187,6

138,4

114,1

Replacement value of property, plant and machinery is determined by an external valuator.

The number of ordinary shares have been adjusted for the 2 for 1 share split (4 November 2010).

Includes R111 million profit (R103 million after tax) on sale of the Ultra Mel Custard business.

^**

Includes R637,5 million (R599,5 million after tax) profit on deconsolidiation of Danone Clover.

^***

Includes R337,7 million (R227,1 million after tax) profit on sale of associate Danone Clover.

A list of all definitions used in the above calculation is set out in note 3.