SIX-Year financial review

Summarised results for
the year		 Increase/ 
(decrease) 
2015 vs 2014 		 2015 
R’000 		 2014 
R’000 		 **2013 
R’000 		 **2012 
R’000 		 **2011 
R’000 		 **2010 
R’000 
Revenue 8,6% 9 266 251  8 530 237  7 832 911  7 223 863  6 542 321  @6 161 483 
Operating profit 80,3% 509 072  282 276  371 624  371 232  319 019  *558 970 
Net financing cost              
Current and long-term liabilities 28,1% (74 064) (57 809) (46 717) (1 855) (16 081) (41 228)
Debt portion of preference share capital   –  –  –  (22 007) (21 359) (22 290)
Profit before tax from continuing operations 93,8% 435 008  224 467  324 907  347 370  281 579  495 452 
Taxes 101,4% (100 286) (49 791) (99 022) (137 654) (97 534) (191 662)
Share of profit of joint ventures (23,5%) 10 939  14 306  13 974  –  –  – 
Profit after tax from discontinued operations   –  –  –  –  –  32 123 
Non-controlling interest (302,2%) 4 684  (2 316) (1 233) (4 426) (4 446) (5 094)
Profit attributable to equity holders of the parent 87,7% 350 345  186 666  238 626  205 290  179 599  *330 820 
Headline earnings attributable to equity holders of the parent 70,3% 319 343  187 464  214 894  207 800  175 177  19 000 
Normalised earnings   2015 
R’000 		 2014 
R’000 		 2013 
R’000 		 2012 
R’000 		 2011 
R’000 		 2010 
R’000 
Operating profit   509 072  282 276  371 624  371 232  319 019  558 970 
Adjusted for exceptional items:              
(Profit)/loss on sale and scrapping of property plant and equipment and other assets   (38 950) 5 102  (11 680) (878) (7 277) 940 
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)
Discount on acquisition of PPE by Clover Waters through issue of shares   –  (20 716) –  –  –  – 
Retrenchment costs   8 156  7 174  17 184  3 629  6 628  84 900 
Option fee paid to HCI on capital restructuring     –  –  –  –  11 400 
Legal and professional services costs associated with the listing   75  141  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   241  8 721  18 517  5 944  1 780  10 700 
Normalised operating profit   478 594  282 698  378 947  379 927  328 649  320 810 
Net financing cost   (74 064) (57 809) (46 716) (23 862) (37 440) (63 518)
Tax expense              
Total tax expense   (100 286) (49 791) (99 022) (137 654) (97 534) (191 662)
Other non-recurring tax adjustments   –  –  –  18 254  –  – 
STC paid on capital restructuring   –  –  –  –  –  52 200 
Taxation adjustment on exceptional items   5 576  (4 286) (8 453) (2 745) (1 845) 69 765 
Share of profit of joint ventures after tax   10 939  14 306  13 974  –  –  – 
Non-controlling interest   4 684  (2 316) (1 233) (4 426) (4 446) (5 094)
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   325 443  188 276  237 497  229 493  187 384  182 501 
@ 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.

 

       
Dividends 2015 
R’000 		 2014 
R’000 		 ***2013 
R’000 		 ***2012 
R’000 		 ***2011 
R’000 		 ***2010 
R’000 
Equity dividends – ordinary shares 71 624  69 342  41 912  53 734  58 720  – 
Equity dividends – preference shares –  –  –  –  –  370 030 
Preference dividends recognised as interest –  –  20 346  22 007  21 359  22 290 
Earnings and dividends per share Cents  Cents  Cents  Cents  Cents  Cents 
Equity dividends per ordinary share – Interim 22,6  16,0  10,0  15,0  10,0  – 
Equity dividends per ordinary share – Final –  16,0  22,0  13,4  15,0  32,95 
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 –  –  22,7  24,6  23,9  24,9 
Earnings per ordinary share 190,4  102,3  133,1  114,6  116,7  **214,0 
Diluted earnings per ordinary share 182,0  97,3  123,8  107,4  108,9  **214,0 
Headline earnings per ordinary share 173,6  102,7  119,9  116,0  113,8  **33,1 
Diluted headline earnings per ordinary share 165,9  97,8  111,5  108,7  106,2  **33,1 
Normalised earnings per share, calculated by dividing the normalised profit by the weighted average number of ordinary shares 176,9  103,2  132,5  128,1  121,8  *118,1 
Summarised statement of financial position R’000  R’000  R’000  R’000  R’000  R’000 
Non-current assets 2 752 656  2 302 052  1 997 482  1 526 306  1 361 355  1 202 482 
Deferred taxation asset 32 696  8 919  6 722  492  3 262  18 840 
Current assets 2 689 485  2 298 621  2 413 733  2 336 745  2 180 874  1 710 880 
Total assets 5 474 837  4 609 592  4 417 937  3 863 543  3 545 491  2 932 202 
Shareholders’ funds 2 571 338  2 252 270  2 113 116  1 894 244  1 742 362  1 048 358 
Non-controlling interest 13 510  20 471  2 309  1 796  9 443  28 108 
Non-current portion of interest-bearing borrowings 681 601  662 357  666 640  21 686  432 833  592 504 
Non-current portion of provisions 74 901  67 615  60 814  61 637  62 522  50 457 
Non-current portion of trade and other payables 21 459  4 351  9 267  6 904  13 357  6 320 
Deferred taxation liability 188 253  179 023  137 313  116 950  32 015  6 363 
Current portion of interest-bearing borrowings 573 576  214 495  172 646  421 376  173 828  66 947 
Current liabilities excluding interest-bearing borrowings 1 350 199  1 209 010  1 255 832  1 338 950  1 079 131  1 133 145 
Total equity and liabilities 5 474 837  4 609 592  4 417 937  3 863 543  3 545 491  2 932 202 
 
Net assets 2 584 848  2 272 741  2 115 425  1 896 040  1 751 805  1 076 466 
Replacement value of property, plant and machinery (@) 7 577 153  7 577 153  6 106 300  5 746 800  5 445 700  5 112 800 
@ 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.
A list of all definitions used in the above calculation is set out here.

Number of shares in issue 2015  2014  **2013  **2012  **2011  **2010 
Number of ordinary shares in issue at year-end 187 731 138  182 478 589  181 218 149  179 111 867  179 111 867  #123 849 962 
Weighted average number of ordinary shares 183 989 596  182 478 589  179 267 674  179 111 867  153 882 447  #154 595 442 
Weighted average number of ordinary shares for calculation of diluted earnings 192 466 775  191 767 408  192 750 186  191 127 152  164 890 519  #154 595 442 
Number of preference shares in issue at year-end – – – 89 442 022  89 442 022  89 442 022 
Weighted average number of preference shares – – – 89 442 022  89 442 022  87 516 207 
Cash flow R’000  R’000  R’000  R’000  R’000  R’000 
Cash flow from operating activities 160 185  403 067  219 198  417 910  256 927  347 077 
Cash (used in)/from investment activities (556 822) (351 734) (515 811) (256 150) (253 323) 1 005 113 
Cash flow/(outflow) from financing activities 218 097  (97 780) 297 159  (272 951) 391 333  (1 196 887)
Cash flow from operating activities per share (cents) 87,1  220,9  122,3  233,3  167  224,5 
Ratios and returns % % % % % %
Operating profit to revenue 5,5  3,3  4,7  5,1  4,9  *9,1 
Normalised operating profit 5,2  3,3  4,8  5,3  5  5,2 
Return on net assets 13,5  8,6  13,1  14,9  15  *27,1 
Return on net assets excluding exceptional items 12,7  8,6  13,4  15,2  15,4  15,5 
Return on equity holders’ funds 14,5  8,6  11,9  11,3  12,9  *26,6 
Return on equity holders’ funds excluding exceptional items 13,5  8,6  11,9  12,6  13,7  15,1 
Gearing percentage (net of cash) 30,2  9,8  6,4  (14,2) (12,4) 21,4 
Effective tax rate 22,5  20,9  29,3  39,6  34,6  38,7 
  times times times times times times
Net asset turn 5,0  5,6  6,2  6,8  8,3  6,9 
Current ratio 1,4  1,6  1,7  1,3  1,7  1,4 
Employees statistics Number Number Number Number Number Number
Average number of employees 7 177  6 393  6 519  6 555  6 353  6 362 
  R’000  R’000  R’000  R’000  R’000  R’000 
Revenue per employee 1 291,1  1 334.3  1 201.6  1 102  1 030  968 
Operating profit per employee 70,9  44,2  57,0  57  50  88 
Normalised operating profit 66,7  44,2  58,0  58  52  50 
Average net assets per employee 338,4  343,2  307,7  278  223  201 
# 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.
A list of all definitions used in the above calculation is set out here.