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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
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Financial Director’s report
Financial review
Although Blue Label Mexico (BLM)
incurred losses, its losses continued
to decline, with the Group’s share
thereof reducing by 42%, from
R63 million to R37 million.
The continuous shift in consumer
buying patterns from traditional
purchasing of airtime to that of
“PINless top-ups” resulted in limited
growth in Group revenue. Only the
gross profit earned thereon is
accounted for in Group revenue
as opposed to the gross amount
generated from transactions of this
nature. On imputing such amounts,
the effective growth would have
equated to 7%.
“Group earnings continued to increase organically primarily
attributable to South Africa Distribution increasing its contribution
to Group core headline earnings by 19%.”
A
strong
underlying
performance