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:

  • Consumer – competes in the Fast Moving Consumer Goods (FMCG) space;
  • Over the counter (OTC) – focuses primarily on brands sold predominantly in the pharmacy market, where the pharmacist plays a role in the product choice;
  • Prescription – markets products prescribed by medical practitioners and includes specialised instrument and surgical products;
  • Hospital – supplier of hospital and critical care products, including intravenous solutions, blood collection products and renal dialysis systems; and
  • Other – shared services – other support services, including cash and bank overdraft balances which are managed on a central basis in Southern Africa.

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.

STATEMENT OF COMPREHENSIVE INCOME

  2018 
R’000 		   2017 
R’000 		  
Turnover             
Continuing operations             
Southern Africa  6 338 389     5 754 241    
   OTC 1 989 225     1 849 038    
   Prescription  2 237 620     1 937 925    
   Hospital  1 347 698     1 256 753    
   Consumer  686 699     688 807    
   Other – shared services  77 147     21 718    
Rest of Africa  222 624     207 052    
Research and development services in India  19 494     18 396    
   6 658 897     5 979 689    
Less: Intercompany sales  (40 252)    (43 633)   
   6 540 255     5 936 056    
Discontinued operations             
India  –     67 206    
Rest of Africa (Ghana) –     51 695    
   –     118 901    
The South African Government represents more than 10% of the Group's turnover, arising in the following segments:            
OTC  114 552     88 696    
Prescription  272 234     258 081    
Hospital  413 953     397 193    
Consumer  74     98    
   800 813     744 068    

  2018 
R’000 		   2017 
R’000 		  
TRADING AND OPERATING PROFIT             
Continuing operations             
Southern Africa  845 540     719 103    
   OTC  399 640     342 322    
   Prescription  239 435     207 787    
   Hospital  95 312     58 475    
   Consumer  112 181     110 038    
   Other – shared services  (1 028)    481    
Rest of Africa  18 330     2 712    
Research and development services in India  2 507     2 608    
Trading profit  866 377     724 423    
Less: Non-trading expenses  (46 895)    (47 128)   
Operating profit  819 482     677 295    
Discontinued operations             
India  –     6 300    
Rest of Africa (Ghana) –     8 949    
Trading profit  –     15 249    
Less: Non-trading expenses  –     (6 833)   
Operating profit  –     8 416    

  2018
R’000		   2017
R’000		  
STATEMENT OF FINANCIAL POSITION        
Total assets        
Southern Africa 5 844 806   5 161 098  
   OTC 1 761 603   1 667 220  
   Prescription 1 987 006   1 239 248  
   Hospital 1 236 482   1 125 158  
   Consumer 315 425   354 965  
   Other – shared services 544 290   774 507  
Rest of Africa 163 141   146 661  
India 262 778   255 214  
  6 270 725   5 562 973  
Current Liabilities        
Southern Africa 2 110 992   1 622 630  
   OTC 662 233   541 262  
   Prescription 565 876   476 378  
   Hospital 378 041   310 264  
   Consumer 100 057   137 463  
   Other – shared services 404 785   157 263  
Rest of Africa 106 474   101 493  
India 3 086   2 423  
  2 220 552   1 726 546  
Capital Expenditure(1)        
Continuing operations        
Southern Africa 210 933   153 656  
   OTC 98 446   60 575  
   Prescription 65 168   37 189  
   Hospital 4 534   5 432  
   Consumer –   21  
   Other – shared services 42 785   50 439  
Rest of Africa 8 285   5 165  
India 30   3 237  
  219 248   162 058  
Discontinued operations        
India –   18  
Rest of Africa (Ghana) –   1 162  
  –   1 180  

(1) Capital expenditure consists of additions to property, plant and equipment, but excludes additions to intangible assets.

  2018
R’000		   2017
R’000		  
OTHER        
Impairments(2)        
Southern Africa        
   Consumer 2 700   –  
   Hospital 403   217  
   Other – shared services 2 132   –  
  5 235   217  
Depreciation and amortisation        
Southern Africa 159 230   145 153  
   OTC 42 264   40 891  
   Prescription 20 773   16 165  
   Hospital 28 168   29 452  
   Consumer 8 417   8 418  
   Other – shared services 59 608   50 227  
Rest of Africa 9 316   4 415  
Research and development services in India 487   504  
  169 033   150 072  

(2) Impairments include impairments of long-term receivables and intangible assets. Refer to Annexure G.