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Tiger Brands Limited

Annual Financial Statements

Annual financial statements

Notes to the statements of cash flows

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FOR THE YEAR ENDED 30 SEPTEMBER 2022

COMPANY         GROUP
2022 2021     (R’million) Notes 2022 2021
      A Cash operating profit      
        Operating profit before impairments and non-operational items      
4 135,5 1 791,4     – Continuing operations   3 430,7 2 235,5
        – Discontinued operations   19,1
        Adjusted for:      
        Depreciation 12 852,7 799,0
(21,0) (19,6)     Expected credit losses   12,5 (51,7)
        Share-based payment expenses 28 55,8 41,3
        Amortisation 13.1 8,1 8,6
        Loss on disposal/write-offs of property, plant, equipment and vehicles 4 3,7 22,2
0,3     Loss on disposal of investment 4 0,3
(4 121,2) (1 671,0)     Dividends received from associate companies and subsidiaries      
        Post-retirement medical aid and pension fund obligations   78,7 6,9
        Restructuring and related costs (reversed)/raised   (7,8) 2,4
        Impact of civil unrest 3.2 85,2
        Impact of product recall 3.1 16,4 646,8
        Early settlement of lease liability   2,8 29,7
        Post-retirement medical aid buy-out 30 (182,9)
(0,7) 0,6     Other non-cash items  
(7,1) 101,4     Cash operating profit   4 271,0 3 845,0
      B Working capital changes      
        Increase in inventories   (1 418,8) (1 001,7)
21,0     (Increase)/decrease in trade and other receivables   (637,6) 348,9
(0,4)     Increase/(decrease) in trade and other payables   426,2 762,6
20,6     Working capital changes   (1 630,2) 109,8
      C Taxation paid      
1,0 2,1     Amounts (payable)/receivable at beginning of year, net   (110,5) (61,7)
        Income statement charge      
(24,0) (9,7)     – Continuing operations 9 (1 019,5) (596,7)
        – Discontinued operations 34 (20,8)
0,2     Deferred tax 18 51,3 (169,4)
        Exchange rate difference and other non-cash items   1,5 2,7
(0,4) (1,0)     Amounts payable/(receivable) at end of year, net   115,7 110,5
(23,2) (8,6)     Taxation paid   (961,5) (735,4)
      D Dividends paid      
(1 547,4) (1 879,2)     Per statement of changes in equity   (1 384,2) (1 683,6)
        Dividends paid to outside shareholders   (2,2) (0,7)
(1 547,4) (1 879,2)     Total dividends paid   (1 386,4) (1 684,3)
      E Purchase of property, plant, equipment      
        Replacement   (439,8) (762,2)
        Expansion   (521,2) (251,5)
            (961,0) (1 013,7)
      F Cash and cash equivalents at the beginning of the year      
221,3 175,6     Cash resources   2 161,8 1 790,0
    Short-term borrowings regarded as cash and cash equivalents   (2,0)
        Discontinued operations   (8,5)
221,3 175,6         2 161,8 1 779,5
      G Cash and cash equivalents at the end of the year      
388,2 221,3     Cash resources   1 072,3 2 161,8
    Cash relating to venture capital initiatives*   43,6
388,2 221,3         1 115,9 2 161,8
* In June 2021, the Tiger Brands Venture Capital Fund was launched with the aim of driving growth for Tiger Brands by investing in innovative businesses based in sub-Saharan Africa which offer healthier eating options in line with emerging consumer trends in health and nutrition, snackification and economical food options. Included in the group’s cash balance is R43,6 million held specifically for venture capital initiatives.