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SIX-Year financial review

Summarised results for the year  Variance 
2013 
vs 
2012 		 2013 
R’000 		 2012 
R’000 		 2011 
R’000 		 2010 
R’000 		 2009 
R’000 		 2008 
R’000 
Revenue  10,7%  7 996 461  7 223 863  6 542 321  @6 161 483  +5 475 800  5 718 306 
Revenue Danone Clover     –  –  –  –  –  682 677 
Revenue excluding Danone Clover  10,7%  7 996 461  7 223 863  6 542 321  6 161 483  5 475 800  5 035 629 
Operating profit  5,4%  391 388  371 232  319 019  **558 970  *664 338  297 227 
Net financing cost                      
Current and long-term liabilities  (1 366,7%) (26 385) (1 855) (16 081) (41 228) (103 501) (90 716)
Debt portion of preference share capital  7,7%  (20 346) (22 007) (21 359) (22 290) (32 248) (30 417)
Profit/(loss) before tax from continuing operations  (0,8%) 344 657  347 370  281 579  495 452  528 589  176 094 
Taxes  23,9%  (104 798) (137 654) (97 534) (191 662) (29 239) (50 472)
Profit after tax from discontinued operations  –  –  –  –  32 123  39 560  – 
Non-controlling interest  72,7%  (1 233) (4 426) (4 446) (5 094) (11 740) (5 698)
Profit attributable to equity holders of the parent  16,2%  238 626  205 290  179 599  **330 820  *527 170  119 924 
Headline earnings attributable to equity holders of the parent  3,4%  214 894  207 800  175 177  19 000  (104 300) 116 300 
Normalised earnings  Variance 
2013 
vs 
2012 		 2013 
R’000 		 2012 
R’000 		 2011 
R’000 		 2010 
R’000 		 2009 
R’000 		 2008 
R’000 
Operating profit  5,4%  391 388  371 232  319 019  558 970  664 338  297 227 
Adjusted for exceptional items:                      
(Profit)/loss on sale and scrapping of property plant and equipment     (11 680) (878) (7 277) 940  (3 830) (5 057)
Gain on fair valuing of existing investment in joint venture due to acquiring control     (16 747) –  –  –  –  – 
Profit on the sale of Boksburg factory     –  –  –  (50 818) –  – 
Profit on deconsolidation of Danone Clover     –  –  –  –  (637 518) – 
Profit on sale of Danone Clover     –  –  –  (337 682) –  – 
Retrenchment costs     17 184  3 629  6 628  84 900  17 200  10 300 
Option fee paid to HCI on capital restructuring     –  –  –  11 400  –  – 
Legal and professional services costs associated with the listing     49  –  8 499  –  –  – 
Legal and professional services costs associated with the capital restructuring     –  –  –  5 300  –  – 
SAR bonuses paid to Executives on capital restructuring     –  –  –  37 100  –  – 
Other restructuring cost     18 517  5 944  1 780  10 700  8 400  1 100 
Normalised operating profit  4,9%  398 711  379 927  328 649  320 810  48 590  303 570 
Net financing cost     (46 731) (23 862) (37 440) (63 518) (135 749) (121 133)
Tax expense                      
Total tax expense     (104 798) (137 654) (97 534) (191 662) (29 239) (50 472)
Other non-recurring tax adjustments     –  18 254  –  –  –  – 
STC paid on capital restructuring     –  –  –  52 200  –  – 
Taxation adjustment on exceptional items     (8 453) (2 745) (1 845) 69 765  33 206  (2 518)
Non-controlling interest     (1 233) (4 426) (4 446) (5 094) (11 740) (5 698)
Normalised profit attributable to equity holders of the parent  3,5%  237 497  229 493  187 384  182 501  (94 932) 123 749 

@  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. 
+  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 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.

 

   Variance 
2013 
vs 
2012 		 2013 
R’000 		 2012 
R’000 		 2011 
R’000 		 2010 
R’000 		 2009 
R’000 		 2008 
R’000 
Dividends                      
Equity dividends – ordinary shares  (22,0%) 41 912  53 734  58 720  –  1 000  619 
Equity dividends – preference shares     –  –  –  370 030  28 984  17 757 
Preference dividends recognised as interest  (7,7%) 20 346  22 007  21 359  22 290  32 248  30 417 
Earnings and dividends per share     Cents  Cents  Cents  Sent  Cents  Cents 
Equity dividends per ordinary share  (22,0%) 23,4  30,0  38,2  –  1,3  0,8 
Equity dividends per preference share     –  –  –  –  33,5  20,5 
Special dividend on the buy-back of the equity rights of preference shares per preference share     –  –  –  413,7  –  – 
Preference dividend recognised as interest per preference share  (7,7%) 22,7  24,6  23,9  24,9  37,3  35,2 
Earnings per ordinary share  16,1%  133,1  114,6  116,7  **214,0  ***22,3  ***5,2 
Diluted earnings per ordinary shares  15,3%  123,8  107,4  108,9  **214,0  ***22,3  ***5,2 
Headline earnings per ordinary share  3,4%  119,9  116,0  113,8  **33,1  ***(82,2) ***150,2 
Diluted headline earnings per ordinary share  2,6%  111,5  108,7  106,2  **33,1  ***(82,2) ***150,2 
Normalised earnings/(loss) per share, calculated by dividing the normalised profit/(loss) by the weighted average number of ordinary shares net of treasury shares  3,4%  132,5  128,1  121,8  *118,1  *(120,6) *159,9 
Summarised statement of financial position     R’000  R’000  R’000  R’000  R’000  R’000 
Non-current assets     1 964 519  1 526 306  1 361 355  1 202 482  1 823 620  1 361 292 
Deferred taxation asset     7 449  492  3 262  18 840  110 449  104 764 
Current assets     2 462 299  2 336 745  2 180 874  1 710 880  1 651 408  1 908 140 
Total assets     4 434 267  3 863 543  3 545 491  2 932 202  3 585 477  3 374 196 
Shareholders’ funds     2 113 116  1 894 244  1 742 362  1 048 358  1 440 122  938 621 
Non-controlling interest     2 309  1 796  9 443  28 108  40 886  48 308 
Non-current portion of interest-bearing borrowings     666 640  21 686  432 833  592 504  761 425  657 001 
Non-current portion of provisions     61 222  61 637  62 522  50 457  60 464  62 883 
Non-current portion of trade and other payables     9 267  6 904  13 357  6 320  –  – 
Deferred taxation liability     137 312  116 950  32 015  6 363  6 292  28 577 
Current portion of interest-bearing borrowings     172 646  421 376  173 828  66 947  234 809  517 581 
Current liabilities     1 271 755  1 338 950  1 079 131  1 133 145  1 041 479  1 121 225 
Total equity and liabilities     4 434 267  3 863 543  3 545 491  2 932 202  3 585 477  3 374 196 
                       
Net assets     2 115 425  1 896 040  1 751 805  1 076 466  1 481 008  986 929 
Replacement value of property, plant and machinery (@)    6 106 300  5 746 800  5 445 700  5 112 800  4 927 000  4 521 600 

*  The earnings/(loss) per share from continuing operations adjusted for exceptional items for years 2008 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 here. 

 

Number of shares in issue     2013  2012  2011  2010  2009  2008 
Number of ordinary shares in issue at year-end     181 218 149  179 111 867  179 111 867  123 849 962  88 485 311  88 485 311 
Weighted average number of ordinary shares net of treasury shares     179 267 674  179 111 867  153 882 447  154 595 442  78 711 534  77 411 046 
Weighted average number of ordinary shares for calculation of diluted earnings     192 750 186  191 127 152  164 890 519  154 595 442  78 711 534  77 411 046 
Number of preference shares in issue at year-end     –  89 442 022  89 442 022  89 442 022  86 492 589  86 492 589 
Weighted average number of preference shares net of treasury shares     –  89 442 022  89 442 022  87 516 207  85 442 022  85 517 022 
Cash flow     R’000  R’000  R’000  R’000  R’000  R’000 
Cash flow from/(used in) operating activities     235 963  417 910  256 927  347 077  79 696  (113 494)
Cash (used in)/from investment activities     (516 092) (256 150) (253 323) 1 005 113  (186 391) (213 069)
Net cash (outflow)/inflow before financing activities     (280 129) 161 760  3 604  1 352 190  (106 695) (326 563)
Cash flow from/(used in) operating activities per share (cents)    131,6  233,3  167,0  224,5  101,3  (146,6)
Ratios and returns     %  %  %  %  %  % 
Operating profit to revenue     4,9  5,1  4,9  **9,1  *12,1  5,2 
Normalised operating profit     5,0  5,3  5,0  5,2  0,9  5,3 
Return on net assets     13,8  14,9  15,0  **27,1  *27,7  15,3 
Return on net assets excluding exceptional items     14,0  15,2  15,4  15,5  2,0  15,6 
Return on equity holders’ funds     11,9  11,3  12,9  **26,6  *44,3  13,6 
Return on equity holders’ funds excluding exceptional items     11,9  12,6  13,7  15,1  (8,0) 14,0 
Gearing percentage     5,7  (14,2) (12,4) 21,4  48,8  67,9 
Effective tax rate     30,4  39,6  34,6  38,7  5,5  28,7 
      Times  Times  Times  Times  Times  Times 
Net asset turn     6,2  6,8  8,3  6,9  6,5  11,4 
Current ratio     1,7  1,3  1,7  1,4  1,3  1,2 
Employees statistics     Number  Number  Number  Number  Number  Number 
Average number of employees     6 533  6 555  6 353  6 362  6 579  6 662 
      R’000  R’000  R’000  R’000  R’000  R’000 
Revenue per employee     1 224,0  1 102  1 030  968  832  858 
Operating profit per employee     59,9  57  50  88  101  45 
Normalised operating profit     61,0  58  52  50  7  46 
Net assets per employee     307,0  278  223  201  188  138 

@   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 R637,5 million (R599,5 million after tax) profit on deconsolidation 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 here. 

 

Product focusIndividually wrapped processed cheese (IWS) slices project

tROPIkA’S StRAtEgIC VISION IS tO:
  • GRoW MARKET SHARE In REGIonS oF WEAK MARKET SHARES (EASTERn And WESTERn CAPE).
  • lEvERAGE THE BRAnd InTo nEW PRoduCT CATEGoRIES FoR THE SAME TARGET MARKET (nEW FlAvouRS And PACK SIzES).
  • STRETCH THE BRAnd InTo nEW ConSuMER MARKETS (lInE ExTEnSIonS undER THE TRoPIKA uMBREllA).

From a turnover of R450 million in 2006/07, Tropika has now achieved a turnover of almost R1 billion. After nearly 30 years in the South African market, Tropika is still the market leader in the dairy Fruit Mixes category and the best-selling fruit juice beverage in South Africa in terms of volume and value.

Since its launch in 1984 the product has grown to a staggering 92,7 million litres for 2012/13.

  • Tropika appeals to consumers from 16 to 49 years of age, lSM 5-10 and all demographics.
  • Sales volume has increased by 56% locally in the last 5 years!
  • Tropika is the brand with the largest advertising spend in its category.
  • Consistently at the forefront of beverage innovation with new product concepts, line extensions and new flavours.
  • Large distribution footprint encompassing Top End, Forecourts, Wholesale, FSI, Bottom End and Agents, Nigeria, Botswana and Namibia.