Value added is a measure of the wealth the group has been able to create. The following statement shows how this wealth has been distributed.
| 2020 | 2019* | |||
| (R’million) | (%) | (%) | ||
| Revenue | 29 796,1 | 100,0 | 28 578,9 | 100,0 |
|---|---|---|---|---|
| Less: Net cost of products and services | 22 021,7 | 73,9 | 20 546,5 | 71,9 |
| Value added | 7 774,4 | 26,1 | 8 032,4 | 28,1 |
| Add: Income from investments and associates | 382,0 | 1,3 | 414,3 | 1,5 |
| Add: Foreign exchange gains | 40,1 | 0,1 | 9,6 | – |
| Wealth created | 8 196,5 | 27,5 | 8 456,3 | 29,6 |
| Applied to: | ||||
| Employees | ||||
| – Salaries, wages and other benefits | 4 117,6 | 50,2 | 4 043,0 | 47,8 |
| Providers of capital | 900,6 | 11,0 | 5 681,7 | 67,2 |
| – Interest on financing facilities | 110,8 | 1,4 | 30,2 | 0,4 |
| – Dividends and capital distributions to non-controlling interests and preference shareholders | 50,0 | 0,6 | 27,4 | 0,3 |
| – Dividends to ordinary shareholders | 739,8 | 9,0 | 5 624,1 | 66,5 |
| Government | ||||
| Taxation (refer note 1) | 1 089,4 | 13,3 | 1 157,7 | 13,7 |
| Retained in the group | 2 088,9 | 25,5 | (2 426,1) | (28,7) |
| 8 196,5 | 100,0 | 8 456,3 | 100,0 |
| (R’million) | 2020 | 2019* |
| Note 1 | ||
| Income taxation (excluding deferred tax) | 784,7 | 926,8 |
| Skills Development Levy | 25,4 | 29,5 |
| Rates and taxes paid to local authorities | 32,1 | 33,1 |
| Customs duties, import surcharges and excise taxes | 247,2 | 168,3 |
| Gross contribution to government | 1 089,4 | 1 157,7 |
The payments to government exclude taxation deducted from employees’ remuneration of R449,1 million (2019: R601,2 million), net VAT receivable of R9,2 million (2019: payable R37,7 million), excise duty on revenue and UIF payments.
| (R’million) | 2020 | (%) | 2019* | (%) | 2018 | (%) | 2017 | (%) | 2016 | (%) |
| Trend of value added | ||||||||||
| Employees | 4 117,6 | 50 | 4 043,0 | 48 | 3 857,5 | 45 | 3 733,7 | 39 | 3 621,8 | 39 |
| Providers of capital | 900,6 | 11 | 5 681,7 | 67 | 1 932,7 | 23 | 2 066,6 | 22 | 1 837,9 | 20 |
| Government | 1 089,4 | 13 | 1 157,7 | 14 | 1 033,9 | 12 | 1 257,8 | 13 | 1 292,6 | 14 |
| Retained in the group | 2 088,9 | 26 | (2 426,1) | (29) | 1 821,2 | 20 | 2 444,2 | 26 | 2 524,1 | 27 |
| 8 196,5 | 100 | 8 456,3 | 100 | 8 645,3 | 100 | 9 502,3 | 100 | 9 276,4 | 100 |
| * | Restated as required by IFRS 5 in relation to the treatment of Value Added Meat Products (VAMP), a division of Tiger Consumer Brands Limited (Domestic operations – Consumer Brands – Food) as a discontinued operation. Refer to note 33. |