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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
1.
Results of operations
continued
1.5 Earnings per share continued
2017
R’000
2016
R’000
(c)
Diluted – basic and headline
Basic earnings (R’000)
786 965
691 590
Weighted average number of ordinary shares in issue (thousands)
667 349
665 950
Adjusted for forfeitable shares (thousands)
5 813
6 570
Weighted average number of ordinary shares for diluted earnings (thousands)
673 162
672 520
Diluted basic earnings per share (cents per share)
116.91
102.84
Headline earnings (R’000)
787 327
668 261
Weighted average number of ordinary shares for diluted headline earnings (thousands)
673 162
672 520
Diluted headline earnings per share (cents)
116.96
99.37
(d)
Core headline
Reconciliation between net profit for the period and core headline earnings
for the period:
Net profit for the period (R’000)
786 965
691 590
Amortisation on intangibles raised through business combinations net of tax and
non-controlling interest (R’000)
14 069
16 650
Core net profit for the period (R’000)
801 034
708 240
Headline earnings adjustments (R’000)
362
(23 329)
Core headline earnings (R’000)
801 396
684 911
Weighted average number of ordinary shares in issue (thousands)
667 349
665 950
Core headline earnings per share (cents per share)
120.09
102.85
1.6 Cash generated by operations
Reconciliation of operating profit to cash generated by operating activities:
Operating profit
1 218 472
1 142 376
Adjustments for:
Depreciation of property, plant and equipment
44 684
42 738
Amortisation of intangible assets
143 109
130 353
Impairment of intangible assets
—
2 568
Discounting of receivables recognised in revenue
163 069
129 633
Discounting of payables recognised in changes in inventories of finished goods
(197 509)
(165 903)
Impairment of inventory
1 178
—
Impairment of loans
4 001
—
Loss/(profit) on disposal of property, plant and equipment
30
(500)
Loss on disposal of intangible assets
—
4
Loss on disposal of subsidiary
—
3 885
Contingent purchase price release
(10 210)
(48 120)
Equity compensation benefit expense
23 417
23 845
Net unrealised forex loss/(profit)
47 157
(68 857)
Changes in working capital (excluding the effects of acquisitions and disposals):
Increase in inventories
(518 909)
(225 756)
(Increase)/decrease in trade and other receivables
(105 132)
52 252
Increase/(decrease) in trade and other payables
945 075
(271 764)
Increase in loans receivable
(5 405)
(1 281)
Decrease/(increase) in starter pack assets
964
(1 288)
1 753 991
744 185