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31
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
Financial Director’s report
continued
Group income statement
May 2016
R’000
May 2015
R’000
Growth
R’000
%
growth
Revenue
26 204 722
22 044 222 4 160 500
19
Gross profit
1 829 694
1 644 340
185 354
11
GP margins (%)
6.98
7.46
(0.48)
Other income
126 294
99 972
26 322
26
Overheads
(715 429)
(664 147)
(51 282)
8
EBITDA
1 240 559
1 080 165
160 394
15
Depreciation, amortisation and impairment
(98 183)
(94 019)
(4 164)
4
EBIT
1 142 376
986 146
156 230
16
Finance costs
(214 110)
(233 165)
19 055
(8)
Finance income
193 899
173 047
20 852
12
Share of (losses)/ profit from associates
(31 279)
12 497
(43 776)
(350)
Share of losses from joint ventures
(40 491)
(91 835)
51 344
(56)
Net profit before taxation
1 050 395
846 690
203 705
24
Taxation
(318 783)
(265 497)
(53 286)
20
Net profit after tax
731 612
581 193
150 419
26
Non-controlling interest
(40 022)
(3 576)
(36 446)
1 019
Net profit attributable to equity holders of parent
691 590
577 617
113 973
20
Core intangible adjustment
16 650
18 961
(2 311)
(12)
Core net profit
708 240
596 578
111 662
19
Headline earnings adjustment
(23 329)
(30 566)
7 237
(24)
Core headline earnings
684 911
566 012
118 899
21
Earnings per share (cents)
103.85
86.86
16.99
20
Headline earnings per share (cents)
100.35
82.26
18.09
22
Core earnings per share (cents)
106.35
89.71
16.64
19
Core headline earnings per share (cents)
102.85
85.11
17.74
21
Revenue
Revenue increased by 19% from
R22 billion to R26.2 billion. This
growth was organically achieved
through access to additional channels
of distribution.
Revenue does not include the
turnover generated by the group’s
international operations in that they
are associate and joint venture
companies which are equity
accounted for only.
Gross profit
Although there was a contraction in
gross profit margins from 7.46% to
6.98%, gross profit increased from
R1.64 billion to R1.8 billion congruent
with the increase in revenue
generated.
Overheads
Overheads, comprising employee
costs and operating expenses
increased by 8%, of which the former
accounted for 5% and the latter
12%.
EBITDA
The resultant EBITDA increased by
15% from R1.08 billion to
R1.24 billion. The comparative year
included a once-off income receipt
of R37 million relating to the disposal
of the Group’s interest in Ukash.
Depreciation, amortisation
and impairment charges
Depreciation, amortisation and
impairment charges amounted to
R98 million equating to an increase of
R4 million on the comparative year.
Of this amount, R20.6 million
pertained to the amortisation of
intangible assets resulting from
purchase price allocations from
historical acquisitions compared to
R22.3 million in the comparative year.
Net finance costs
Finance costs
Finance costs totalled R214 million, of
which R48 million related to interest
paid on borrowed funds and facilities
and R166 million to imputed IFRS
interest adjustments on credit received
from suppliers. On a comparative
basis, interest paid on borrowed funds
and facilities amounted to R68 million
and the imputed IFRS interest
adjustment equated to R165 million.
The decline of R20 million on interest
paid on borrowed funds and facilities
was congruent with cash generated
from trading operations. This decline
was net of the perpetuation of
applying excess funds to bulk
inventory purchase transactions and
early settlement payments attracting
favourable discounts. Finance facilities
were utilised on a piecemeal basis for
this purpose and repaid during the
current year.