Annexure A: Segment report

Geographical segments are reported as the Group operates in Southern Africa, Rest of Africa and India.
 
The Group’s reportable segments in Southern Africa are as follows:
  • Over the Counter (OTC) – focuses primarily on brands sold predominantly in the pharmacy market, where the pharmacist plays a role in the product choice;
  • Consumer – competes in the Fast Moving Consumer Goods (FMCG) space;
  • Prescription – market products prescribed by medical practitioners; and
  • Hospital – supplier of hospital and critical care products, including intravenous solutions, blood collection products and renal dialysis systems.
The financial information of the Group’s reportable segments is reported to key management for purposes of making decisions about allocating resources to the segment and assessing its performance. Segment figures for management purposes equal the disclosures made in the segment report and agree with the IFRS amounts in the annual financial statements.
 
No operating segments have been aggregated to form the above reportable operating segments.
  2016
R’000		   2015
R’000		  
STATEMENT OF COMPREHENSIVE INCOME        
Turnover        
Continuing operations        
Southern Africa 5 388 857   5 022 770  
  OTC 1 668 438   1 454 224  
  Consumer 662 981   628 991  
  Prescription 1 830 669   1 812 735  
  Hospital 1 226 769   1 126 820  
Rest of Africa 178 594   147 400  
Research and development services in India 15 099   11 565
5 582 550   5 181 735  
Less: Intercompany sales (36 940)   (22 834)
5 545 610   5 158 901
Discontinued operations        
India 258 936   257 672  
Rest of Africa (Ghana) 144 956   111 796
403 892   369 468
The South African Government represents more than 10% of the Group’s turnover, arising in the following segments:        
  OTC 67 700   57 492  
  Consumer 431   2 608  
  Prescription 284 570   252 474  
  Hospital 412 972   374 491
765 673   687 065
TRADING AND OPERATING PROFIT        
Continuing operations        
Southern Africa 607 043   520 894  
  OTC 310 022   260 717  
  Consumer 90 476   79 301  
  Prescription 171 453   148 099  
  Hospital 35 092   32 777  
Rest of Africa (3 522)   (4 261)  
Research and development services in India 2 173   1 393
Trading profit 605 694   518 026  
Less: Non-trading expenses (52 449)   (18 960)
Operating profit 553 245   499 066
Discontinued operations        
India 7 269   (58 143)  
Rest of Africa (Ghana) 24 326   (8 900)
Trading profit/(loss) 31 595   (67 043)  
Less: Non-trading expenses (230 307)   (87 365)
Operating loss (198 712)   (154 408)
         
STATEMENT OF FINANCIAL POSITION        
Total assets        
Continuing operations        
Southern Africa(1) 4 198 690   4 064 031  
  OTC 1 556 402   1 419 863  
  Consumer 325 800   393 820  
  Prescription 1 216 989   1 209 513  
  Hospital 1 099 499   1 040 835  
Rest of Africa 143 854   193 171  
India 230 955   852 153
Other – shared services 412 470   348 597
4 985 969   5 457 952
Discontinued operations
India 584 844   –
Rest of Africa (Ghana) 25 794   –
610 638   –
Current liabilities        
Continuing operations        
Southern Africa(1) 1 467 171   1 128 353  
  OTC 519 701   365 103  
  Consumer 152 377   134 216  
  Prescription 521 124   416 365  
  Hospital 273 969   212 669  
Rest of Africa 91 694   106 349  
India –   109 489
Other – shared services 90 178   378 434
1 649 043   1 722 625
Discontinued operations
India 57 671   –
Rest of Africa (Ghana) 42 434   –
100 105   –
(1) Cash and bank overdraft balances in Southern Africa are managed on a central basis and are not allocated to the operating segments, but included in the other segment.
Capital expenditure(2)        
Continuing operations        
Southern Africa 56 252   42 002  
  OTC 17 427   3 730  
  Consumer 274   176  
  Prescription 8 369   8 867  
  Hospital 30 182   29 229  
Rest of Africa 1 700   8 640  
India –   287
Other – shared services 33 142   28 935
91 094   79 864
Discontinued operations
India 777   –
Rest of Africa (Ghana) 3 571   –
4 348   –
(2) Capital expenditure consists of additions to property, plant and equipment, but excludes additions to intangible assets.
         
OTHER        
Impairments(3)        
Continuing operations        
Southern Africa 3 437   479  
  Prescription 3 149   –  
  Hospital 288   479  
Rest of Africa –   –  
Other – shared services 5 201   5 857
8 638   6 336
Discontinued operations
India 135 012   74 432
Rest of Africa (Ghana) 72 959   7 390
207 971   81 822
Depreciation and amortisation        
Continuing operations        
Southern Africa 92 152   87 956  
  OTC 39 629   35 401  
  Consumer 8 439   9 281  
  Prescription 15 860   14 223  
  Hospital 28 224   29 051  
Rest of Africa 4 589   3 657  
Research and development services in India 918   940
Other – shared services 48 782   42 909
146 441   135 462
Discontinued operations
India –   58 065
Rest of Africa (Ghana) 1 624   2 571
1 624   60 636
(3) Impairments include impairments of long-term receivables, intangible assets, property, plant and equipment and assets held-for-sale.