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Turnover of R1.7 billion is R214 million (14.7%) higher than last year, achieved through an average price increase of 7%
with the balance relating to volume and mix. The Top 4 brands in the Division, each of which generate annual revenue
in excess of R100 million are showing double digit growth.
Gross margin deteriorated due to the exchange rate impact of the weaker rand, coupled with a change in mix as
consumers continue to down trade from higher margin products to lower margin products and smaller pack sizes.
Operating expenses, ended 6.1% ahead of the prior year, mainly as a result of higher selling and distribution expenditure
related to the higher sales and the filling of sales vacancies that existed in the prior year.
This translated into trading profit of R310 million increasing by almost R50 million from 2015.
OVER THE COUNTER (OTC)
14
,7%
18
,9%
2015
2014
2016
1 454 224
1 247 689
1 668 438
TURNOVER
(R’000)
2015
2014
2016
260 717
164 255
310 022
TRADING PROFIT
(R’000)
OUR PERFORMANCE
(continued)
30 |
Integrated Report 2016