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Investments in associated companies

COMPANY     GROUP
2021 2020   (R’million) 2021 2020
    15 INVESTMENTS IN ASSOCIATED COMPANIES    
    15.1 (For more detail, refer Annexure B)    
97,1 97,1   Listed, at cost 97,1 601,6
– 96,4   Unlisted, at cost less amounts written off 584,8 638,1
      Share of accumulated other comprehensive income (596,9) (393,2)
      Share of accumulated profits since acquisition 2 315,7 1 594,3
97,1 193,5     2 400,7 2 440,8
      The trading results of the associate companies whose results are equity accounted in the consolidated financial statements are as follows:    
      Revenue (100%) 21 042,8 25 090,7
      Profit for the year (100%) 1 312,8 1 337,7
15.2 Reconciliation of associates income
 
(R’million) Empresas
Carozzi		 National
Foods
Holdings
Limited		 UAC Foods Total
2021        
Income attributable to ordinary shareholders of Tiger Brands 296,0 31,0 18,9 345,9
Less: Total dividends (115,4) (11,8) – (127,2)
Total share of associated companies’ income less dividends received 180,6 19,2 18,9 218,7
2020        
Income attributable to ordinary shareholders of Tiger Brands before non-operational items   285,7   57,4   8,2   351,3
Non-operational items – – 1,1 1,1
Income attributable to ordinary shareholders of Tiger Brands   285,7   57,4   9,3   352,4
Less: Total dividends (105,5) (8,7) – (114,2)
Total share of associated companies’ income less dividends received   180,2   48,7   9,3   238,2

15.3

Impairment of investment in associated company

During the prior year R117,7 million (R74,7 million in company) was impaired in relation to the UAC Foods (UAC) associate investment. Given the adverse market outlook for the Nigeria economy, the deteriorating macro-economic factors within Nigeria, further exacerbated by currency devaluations as well as forex supply and liquidity challenges, the investment in UAC was impaired down to its recoverable amount. The EBITA multiple valuation technique was adopted using an appropriate, comparable EBITDA multiple.

15.4

(Loss)/profit on disposal of investment in associated company

On 1 September 2021, the UAC associate investment was effectively disposed. This resulted in a loss on sale of R10,8 million (R43,6 million profit in company).
15.5

Summarised statement of financial position of all associates

The aggregate statement of financial position of all associates are summarised as follows (100%):
 
  GROUP
(R’million) 2021 2020
Property, plant and equipment 10 641,2 12 693,5
Goodwill and intangible assets 3 423,0 4 093,9
Investments 14,3 59,9
Deferred taxation 239,7 233,6
Net current assets 8 183,9 3 404,7
Total assets 22 502,1 20 485,6
Long-term liabilities (5 307,8) (6 260,5)
Deferred taxation (1 997,1) (2 251,0)
Total shareholders’ funds 15 197,2 11 974,1
15.6

The assessment criteria as noted in the accounting policies is performed annually. Empresas Carozzi has met the assessment criteria to be classified as a material associate in the current year and thus further disclosure is provided in Annexure B.