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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
FINANCIAL DIRECTOR’S REPORT
CONTINUED
NON-CONTROLLING INTEREST
There was a turnaround from a non-controlling share of losses of R1.3 million in the prior year to a non-
controlling share of profits of R3.6 million in the current year.
HEADLINE EARNINGS
After accounting for headline earnings adjustments of R31 million, which mainly pertained to the disposal
of the Group’s interest in Ukash, headline earnings increased by 21% to R547 million.
This equated to headline earnings per share of 82.26 cents, net of the Group’s share of losses of R85 million
in Blue Label Mexico which equated to 12.82 cents per share. The remaining businesses within the Group
contributed 95.08 cents to headline earnings per share.
SEGMENTAL REPORT
2014
R’000
Growth
R’000
%
growth
South African Distribution
Revenue
21 657 891
19 103 652 2 554 239
13
Gross profit
1 444 730
1 180 376
264 354
22
EBITDA
1 038 252
821 310
216 942
26
Core net profit
684 756
558 996
125 760
22
Gross profit margin (%)
6.67
6.18
EBITDA margin (%)
4.79
4.30
2015
R’000
The increase in revenue by 13% was predominantly
achieved through access to additional channels of
distribution. Revenue generated on “PINless
top-ups” increased by R966 million from R1.7 billion
to R2.7 billion. As only the commission earned
thereon is accounted for, the effective growth in
Group revenue equated to 17%.
Net commissions earned on the distribution of
prepaid electricity increased by R31 million to
R165 million (23%) on revenue of R10.4 billion
generated on behalf of an escalating base
of utilities.
The gross profit increase of 22% was achieved after
inclusion of imputed IFRS interest adjustments. On
exclusion of these adjustments for both the current
and the comparative year, gross profit increased by
R279 million, equating to an effective growth of
24%. Similarly the impact on gross profit margins
on exclusion of imputed IFRS interest adjustments
equated to a growth from 5.97% to 6.54%.
The growth in EBITDA of 26% was inclusive of the
effects of imputed IFRS interest adjustments. On
exclusion of these adjustments, growth of
R231 million was achieved, equating to a 29%
growth, with EBITDA margins increasing from
4.10% to 4.67%.
Core net profit increased by R126 million to
R685 million (22%).