PROFILE

The Sasko segment of the business consists of the Sasko division, Bowman Ingredients and a number of other Africa businesses. Sasko is the predominant contributor to the segment and comprises four business units, namely, Sasko Grain, Sasko Bakeries, Sasko Pasta and Sasko Strategic Services. Financial performance Revenue for the segment increased by 9% to R8 877 million and operating profit by 49% to R926 million, resulting in a profit margin of 10.4% (2008: 7.6%).

FINANCIAL PERFORMANCE

Revenue for the segment increased by 9% to R8 877 million and operating profit by 49% to R926 million, resulting in a profit margin of 10.4% (2008: 7.6%).

Sasko ended the 2009 year with a sound overall performance, posting an improved profit contribution and an improved operating profit margin.

The year was characterised by trend-breaking volume performances. In line with total industry consumption, wheat throughput declined during the year with white maize consumption increasing substantially. Both these changes are in contrast to the historic long-term growth in wheat consumption and the stable consumption trend for white maize.

The demand for staple food products remained resilient in the market, despite the overall decline in economic activity. The various grant support programmes that the government provides, are supportive of this trend, particularly in rural areas where the business is well represented. Overall, the business benefited from the year-on-year decline in grain commodity prices and initial decline in fuel prices, although the substantial rise in electricity costs towards the end of the year is an addition to the cost base.