Five-year financial Review
| GROUP | ||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||
|---|---|---|---|---|---|---|
| R’m | R’m | R’m | R’m | R’m | ||
| CONSOLIDATED INCOME STATEMENTS | ||||||
| Revenue | 16 283.9 | 14 884.4 | 11 676.6 | 9 664.4 | 8 446.3 | |
| Profit before items of a capital nature and income tax | 964.6 | 646.5 | 717.2 | 681.2 | 670.7 | |
| Items of a capital nature | (68.0) | (19.4) | 1.1 | 76.7 | 15.4 | |
| Income tax expense | (334.9) | (174.4) | (211.3) | (186.1) | (177.9) | |
| Profit for the year | 561.7 | 452.7 | 507.0 | 571.8 | 508.2 | |
| Attributable to: | ||||||
| Equity holders of the Group | 560.5 | 452.2 | 506.2 | 571.3 | 504.6 | |
| Minority interest | 1.2 | 0.5 | 0.8 | 0.5 | 3.6 | |
| 561.7 | 452.7 | 507.0 | 571.8 | 508.2 | ||
| Operating profit before items of a capital nature | 1 160.0 | 865.1 | 831.9 | 746.9 | 731.0 | |
| Headline earnings for the year | 620.9 | 468.3 | 502.6 | 493.5 | 487.8 | |
| CONSOLIDATED BALANCE SHEETS | ||||||
| Property, plant, equipment and intangible assets | 3 761.6 | 3 634.1 | 3 244.2 | 2 853.2 | 2 574.4 | |
| Deferred income tax assets | 2.7 | 36.2 | 25.5 | 23.4 | 17.4 | |
| Loans to joint ventures and investment in associates | 38.5 | 32.4 | 15.0 | 11.2 | 22.9 | |
| Non-current trade debtors and available-for-sale financial assets | 48.6 | 41.5 | 42.0 | 29.8 | 20.6 | |
| Current assets | 4 250.1 | 4 297.0 | 3 502.4 | 2 976.5 | 2 259.4 | |
| Total assets | 8 101.5 | 8 041.2 | 6 829.1 | 5 894.1 | 4 894.7 | |
| Capital and reserves attributable to equity holders of the Group | 4 628.0 | 4 256.8 | 3 609.2 | 3 186.7 | 2 650.5 | |
| Minority interest | 5.8 | 6.0 | 5.8 | 5.0 | 4.7 | |
| Total equity | 4 633.8 | 4 262.8 | 3 615.0 | 3 191.7 | 2 655.2 | |
| Non-current borrowings | 1 096.6 | 1 181.3 | 187.4 | 272.4 | 67.5 | |
| Provisions, derivative financial instruments and share-based payment liability | 165.8 | 135.1 | 71.9 | 69.0 | 76.6 | |
| Deferred income tax liabilities | 491.2 | 442.4 | 415.4 | 398.0 | 387.3 | |
| Current liabilities | 1 714.1 | 2 019.6 | 2 539.4 | 1 963.0 | 1 708.1 | |
| Total equity and liabilities | 8 101.5 | 8 041.2 | 6 829.1 | 5 894.1 | 4 894.7 | |
| CONSOLIDATED CASH FLOW STATEMENTS | ||||||
| Net cash profit from operating activities | 1 509.7 | 1 141.7 | 1 117.4 | 973.3 | 936.8 | |
| Working capital changes | 356.6 | (511.2) | (350.7) | (573.7) | 113.6 | |
| Cash effect from hedging activities | 21.7 | (140.5) | 64.2 | 49.6 | 14.0 | |
| Income tax paid | (234.4) | (178.3) | (225.5) | (209.9) | (131.8) | |
| Net cash flow from operating activities | 1 653.6 | 311.7 | 605.4 | 239.3 | 932.6 | |
| Net cash flow from investment activities | (465.0) | (648.9) | (645.9) | (354.4) | (768.0) | |
| Net cash surplus/(deficit) | 1 188.6 | (337.2) | (40.5) | (115.1) | 164.6 | |
| Net cash flow from financing activities | (517.5) | 1 140.9 | (331.9) | 74.5 | (628.1) | |
| Net cash and short-term borrowings from business combinations and disposal of subsidiaries | – | 2.8 | (3.0) | – | (4.4) | |
| Net increase/(decrease) in cash, cash equivalents and bank overdrafts | 671.1 | 806.5 | (375.4) | (40.6) | (467.9) | |
| 2009 | 2008 | 2007 | 2006 | 2005 | ||
| PROFITABILITY (%) | ||||||
| Revenue growth | 9.4 | 27.5 | 20.8 | 14.4 | 11.3 | |
| Operating profit margin | 7.1 | 5.8 | 7.1 | 7.7 | 8.7 | |
| Effective tax rate | 37.4 | 27.8 | 29.4 | 24.6 | 25.9 | |
| Return on average net assets | 19.7 | 15.4 | 17.2 | 18.3 | 21.7 | |
| Return on average shareholders’ funds | 14.0 | 11.9 | 14.8 | 16.9 | 19.0 | |
| LIQUIDITY AND SOLVENCY | ||||||
| Debt to equity ratio (%) | 14.3 | 34.2 | 33.1 | 28.3 | 22.2 | |
| Current ratio (times) | 2.5 | 2.1 | 1.4 | 1.5 | 1.3 | |
| Acid test ratio (times) | 1.3 | 1.0 | 0.7 | 0.8 | 0.7 | |
| Cash profit interest cover (times) | 7.6 | 5.2 | 9.7 | 14.5 | 12.3 | |
| Net interest cover (times) | 5.9 | 3.9 | 7.2 | 11.1 | 9.6 | |
| Dividend cover (times) | 2.5 | 2.5 | 3.0 | 3.2 | 3.6 | |
| PERFORMANCE PER SHARE (CENTS) | ||||||
| Earnings | 320.8 | 282.3 | 330.7 | 377.4 | 324.3 | |
| Headline earnings | 355.4 | 292.4 | 328.4 | 325.9 | 313.5 | |
| Dividend | 125.0 | 96.0 | 93.0 | 85.2 | 74.8 | |
| Net asset value | 2 622.9 | 2 437.6 | 2 338.6 | 2 087.6 | 1 757.6 | |
| PRODUCTIVITY | ||||||
| Revenue to net asset cover (times) | 3.5 | 3.5 | 3.2 | 3.0 | 3.2 | |
| Revenue per employee (R’000) | 1 363.7 | 1 284.7 | 1 010.6 | 829.4 | 702.9 | |
| Net assets per employee (R’000) | 387.6 | 367.4 | 312.4 | 273.5 | 220.6 | |
| Number of permanent employees | 11 941 | 11 586 | 11 554 | 11 652 | 12 016 | |
| SHARE TRADING STATISTICS | ||||||
| Price per share (cents): | ||||||
| At year-end | 3 350 | 2 477 | 3 504 | 2 800 | 2 000 | |
| High | 3 350 | 3 504 | 4 000 | 3 300 | 2 000 | |
| Low | 2 175 | 2 060 | 2 800 | 1 871 | 1 055 | |
| Net number of issued shares (’000): | ||||||
| Total number of issued shares | 201 184 | 201 184 | 181 184 | 181 184 | 181 184 | |
| Number of treasury shares – share incentive trusts | (6 758) | (8 571) | (8 871) | (10 415) | (12 266) | |
| Number of treasury shares – subsidiary | (17 982) | (17 982) | (17 982) | (18 118) | (18 118) | |
| 176 444 | 174 631 | 154 331 | 152 651 | 150 800 | ||
| Market capitalisation (R’000) | 6 739 664 | 4 983 328 | 6 348 687 | 5 073 152 | 3 623 680 | |
| Dividend yield (%) | 3.7 | 3.9 | 2.7 | 3.0 | 3.7 | |
| Headline earnings yield (%) | 10.6 | 11.8 | 9.4 | 11.6 | 15.7 | |
| Earnings yield (%) | 9.6 | 11.4 | 9.4 | 13.5 | 16.2 | |
| Price earnings ratio (times) | 9.4 | 8.5 | 10.7 | 8.6 | 6.4 | |
| 2009 | 2008 | 2007 | 2006 | 2005 | ||
| R’m | R’m | R’m | R’m | R’m | ||
| Segments | ||||||
| Revenue | ||||||
| Sasko | 8 876.7 | 8 143.0 | 5 848.8 | 4 655.8 | 4 229.7 | |
| Agri Business | 2 599.4 | 2 493.4 | 2 106.9 | 1 877.2 | 1 765.9 | |
| Bokomo Foods | 2 625.0 | 2 539.4 | 2 217.3 | 1 856.1 | 1 577.7 | |
| Ceres Beverages | 2 410.1 | 2 082.9 | 1 807.3 | 1 383.8 | 985.9 | |
| Unallocated | – | – | – | 212.1 | 197.7 | |
| 16 511.2 | 15 258.7 | 11 980.3 | 9 985.0 | 8 756.9 | ||
| Less: Internal revenue | (227.3) | (374.3) | (303.7) | (320.6) | (310.6) | |
| 16 283.9 | 14 884.4 | 11 676.6 | 9 664.4 | 8 446.3 | ||
| Operating profit before items of a capital nature | ||||||
| Sasko | 926.3 | 622.0 | 453.8 | 372.0 | 361.2 | |
| Agri Business | 80.3 | 3.5 | 100.7 | 178.1 | 163.0 | |
| Bokomo Foods | 195.4 | 239.4 | 213.0 | 158.0 | 166.6 | |
| Ceres Beverages | 98.6 | 77.8 | 106.4 | 77.9 | 63.7 | |
| Unallocated | (140.6) | (77.6) | (42.0) | (39.1) | (23.5) | |
| 1 160.0 | 865.1 | 831.9 | 746.9 | 731.0 | ||
| Depreciation and amortisation | ||||||
| Sasko | 111.0 | 104.4 | 110.8 | 83.6 | 70.7 | |
| Agri Business | 21.1 | 19.6 | 17.3 | 17.3 | 17.4 | |
| Bokomo Foods | 54.4 | 45.9 | 54.0 | 50.7 | 44.1 | |
| Ceres Beverages | 55.0 | 50.8 | 37.3 | 28.1 | 23.4 | |
| Unallocated | 27.6 | 31.6 | 31.1 | 17.3 | 23.9 | |
| 269.1 | 252.3 | 250.5 | 197.0 | 179.5 | ||
deFinitionS
Operating profit margin
Operating profit, before items of a capital nature, as a percentage of revenue.
Effective tax rate
Income tax expense per income statement as a percentage of profit before income tax.
Return on average net assets
Operating profit, before items of a capital nature, as a percentage of total assets, excluding any loans to joint ventures, investments in associates, available-for-sale financial assets, non-current trade and other receivables, cash and cash equivalents and deferred income tax assets, reduced by trade and other payables, provisions for other liabilities and charges, derivative financial instruments and share-based payment liabilities. The average is based on the carrying values as at the beginning and end of the year.
Return on average shareholders’ funds
Headline earnings as a percentage of average capital and reserves attributable to equity holders of the Group, as determined at the beginning and end of the year.
Debt to equity ratio
Borrowings, net of cash and cash equivalents, as a percentage of capital and reserves attributable to equity holders of the Group.
Current ratio
Ratio of current assets to current liabilities.
Acid test ratio
Ratio of current assets less inventories and current biological assets to current liabilities.
Cash profit interest cover
Net cash profit from operating activities plus dividends received, divided by net interest.
Net interest cover
Operating profit, before items of a capital nature, plus dividends received, divided by net interest.
Dividend cover
Headline earnings for the year, divided by total dividends declared (excluding dividends on class A ordinary shares).
Net asset value per share
Capital and reserves attributable to equity holders of the Group divided by the total number of issued ordinary shares, excluding treasury shares held by a subsidiary and a share incentive trust.
Revenue to net asset cover
Revenue divided by net assets.
Revenue per employee
Revenue divided by permanent employees at year-end.
Net assets per employee
Capital and reserves attributable to equity holders of the Group divided by permanent employees at year-end.
Market capitalisation
Market price per ordinary share at year-end multiplied by the total number of issued ordinary shares.
Dividend yield
Dividend per ordinary share divided by the market price per ordinary share at year-end.
Headline earnings yield
Headline earnings per ordinary share divided by the market price per ordinary share at year-end.
Earnings yield
Earnings per ordinary share divided by the market price per ordinary share at year-end.
Price earnings ratio
Market price per ordinary share at year-end in relation to headline earnings per ordinary share.
Ordinary share/shares
For the purposes of all the above definitions ordinary share/shares exclude(s) class A ordinary shares.