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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
27
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Group income statement
May 2017
R’000
May 2016
R’000
Growth
R’000
Growth
%
Revenue
26 311 875
26 204 722 107 153
0%
Gross profit
2 172 582
1 829 694 342 888
19%
GP margins (%)
8.26%
6.98% 1.28%
Other income
16 814
126 294 (109 480)
(87%)
Overheads
(858 073)
(715 429)
(142 644)
(20%)
EBITDA
1 331 323
1 240 559
90 764
7%
Depreciation, amortisation and impairment
(112 851)
(98 183)
(14 668)
(15%)
EBIT
1 218 472
1 142 376
76 096
7%
Finance costs
(303 027)
(214 110)
(88 917)
(42%)
Finance income
242 194
193 899
48 295
25%
Gain on associates and joint venture measured at fair value
160 200
–
160 200
Share of losses from associates and joint ventures
(164 941)
(71 770)
(93 171)
(130%)
Net profit before taxation
1 152 898
1 050 395 102 503
10%
Taxation
(332 037)
(318 783)
(13 254)
(4%)
Net profit after tax
820 861
731 612
89 249
12%
Non-controlling interest
(33 896)
(40 022)
6 126
15%
Net profit attributable to equity holders of parent
786 965
691 590
95 375
14%
Core intangible adjustment
14 069
16 650
(2 581)
(16%)
Core net profit
801 034
708 240
92 794
13%
Headline earnings adjustment
362
(23 329)
23 691
102%
Core headline earnings
801 396
684 911 116 485
17%
Earnings per share (cents)
117.92
103.85
14.07
14%
Headline earnings per share (cents)
117.98
100.35
17.63
18%
Core headline earnings per share (cents)
120.09
102.85
17.24
17%
Gross profit increased by R343 million
(19%) to R2.2 billion congruent with
an increase in margins from 6.98%
to 8.26%.
After accounting for a negative
turnaround in foreign exchange
movements of R125.7 million, a net
negative movement of R37.9 million
relating to a release of a contingent
portion of deferred purchase
considerations and an increase in
overheads of R90 million, the
resultant EBITDA increased by
R91 million (7%) to R1.33 billion.
The investments in Oxigen Services
India, Oxigen Online Services India,
collectively (Oxigen Services India), and
2DFine Holdings Mauritius (2DFine)
were historically accounted for as
investments in associates and joint
venture, applying the equity method
up until 30 November 2016.
From that date these entities are
accounted for as venture capital
investments, which, in accordance
with IAS 28 –
Investments in
Associates and Joint Ventures
, have
been accounted for at fair value. The
differential between the carrying
value of the investments and their
fair value is reflected as a gain on
associates and joint venture measured
at fair value.
A fair value gain of R160 million and
the Group’s share of losses for the
year under review of R125 million,
equated to a net positive contribution
of R35 million to Group earnings. On
exclusion of this positive contribution,
headline earnings would have
amounted to R752 million and core
headline earnings to R766 million,
equating to 112.74 cents and
114.85 cents per share respectively.
Capital and reserves accumulated
to R5 billion, net of accumulated
dividends paid to date totalling
R1.16 billion, further strengthening
the Group’s balance sheet. The net
asset value increased by 11% to
R7.32 per share.