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Turnover of R663 million is 5.4% ahead of the R629 million reported in 2015. This business realised 4% through price and
4% in volume, which was offset by some discontinued lines. Panado, our leading brand, posted growth of 7%.
Gross margin improved from 2015, due to lower inventory impairments and an improved sales mix compared to 2015.
The increase in operating expenditure of R30.1 million (12.2%) has arisen as expenditure consequent to the higher sales
as well as increased regulatory expenditure relating to the anticipated CAMs regulations.
This resulted in trading profit of R90 million being R11 million (14.1%) higher than 2015.
CONSUMER
5
,4%
14
,1%
2015
2014
2016
628 991
583 502
662 981
TURNOVER
(R’000)
2015
2014
2016
79 301
63 467
90 476
TRADING PROFIT
(R’000)
REST OF AFRICA
Rest of Africa turnover (excluding Ghana)
of R179 million increased by 21% over the
prior year. Despite this top line growth,
these businesses continue to disappoint at
the trading profit line and made a loss of
R3.5 million in the current year compared to a
loss of R4.3 million recorded in the prior year.
DISCONTINUED OPERATIONS
Ghana and India
The Indian operation has been treated
as held-for-sale and is reflected as a
discontinued operation from 1 July 2015.
In line with this accounting treatment,
amortisation and depreciation of the Indian
assets were suspended from the start of the
current financial year. For a more meaningful
comparison of the discontinued operation
in the income statement, depreciation and
amortisation in the current year would have
amounted to R45 million.
The Ghanaian operation has been treated as
held-for-sale and reflected as a discontinued
operation from 30 June 2016.
BALANCE SHEET
The Group has Shareholders’ funds of
R3.229 billion at June 2016.
The non-distributable reserves have increased
by R123.5 million from the previous year. This
increase has resulted mainly from movements
in the foreign currency translation reserve of
R118.3 million of which R86.8 million relates to
thediscontinuedoperations in IndiaandGhana.
Non-current assets
Intangible assets, including goodwill,
have a carrying value of R276.1 million.
The portion of intangible assets relating
to the Cosme trademarks of the India
business are now included in held-for-sale
assets at R381.1 million. An impairment of
R135.2 million was recorded against these
intangible assets in the current year.
Other financial assets of R74.3 million
are primarily the capital contribution
made to the Tiger Brands Black Managers
Trust which has reduced as options
were exercised in the current year.
OUR PERFORMANCE
(continued)
32 |
Integrated Report 2016