Operational review


Strategic outlook

Our strategic objective is to accelerate growth by strengthening our master-brand portfolio, while defending our leading positions through increased marketing investment and innovation. In addition, we will develop strong shopper propositions and seek to expand our current portfolio into category adjacencies and boost differentiation through enhanced labelling and packaging. We will be restoring competitiveness in our manufacturing activities by eliminating waste and improve overall equipment effectiveness aimed at unlocking savings to improve capacity and reduce conversion costs.

In Consumer Brands – Food, an improved top-line performance in Groceries was partially offset by the impact of reduced demand in Snacks & Treats, Beverages and Out of Home. Overall revenue grew by 3% in line with price inflation of 3%, while total volumes remained unchanged. The subdued revenue growth together with above-inflation cost increases, resulted in negative operating leverage with operating income declining by 20% to R829 million (2019: R1,0 billion).

Groceries’ revenue increased by 9%, supported by volume growth of 4% and 5% price inflation. Despite pricing constraints and supply chain challenges in the first half, profitability improved with operating income increasing by 9% to R354 million. This performance was assisted by a favourable sales mix, optimal promotional activity and rigid cost control.

Despite a recovery in demand in the second half, revenue in the Snacks & Treats category decreased by 5% to R2,1 billion, largely driven by a volume decline of 6%. Demand was adversely impacted across all segments during the various lockdown stages as spending was diverted to essential items and the decline in shopping occasions reduced the opportunity for impulse purchases. Operating income declined by 46% to R170 million as a result of lower volumes, factory under-recoveries and higher expenses due to Covid-19 related costs.

Similarly, the Beverages business was impacted by Covid-19 restrictions in the second half, with year-on-year revenue marginally up following reasonable growth in the first half. Operating income fell by 20% to R238 million due to an unfavourable product mix as well as higher conversion and distribution costs.

Financial highlights



2019: R9,4 billion




Operating income
2019: R1,0 billion

Revenue by segment

Revenue by division

Performance summary

Volume growth in Groceries driven by spreads and canned vegetables; profitability benefits from favourable product mix, optimal promotional activity and cost control
In Beverages, Oros flavoured innovations drive category growth; channel specific innovation with Brookes Crush launch
Snacks & Treats volumes decline due to lockdown stages impacting consumer spend
Covid-19 restrictions in H2 offsets reasonable H1 growth in Beverages

Operating facilities

Consumer map


  • Groceries (Musina)


  • Groceries (spreads, condiments and ingredients)
  • Beverages (Roodekop)


  • Snacks & Treats

Western Cape

  • Groceries (Paarl)