Operational review

Total revenue for Exports and International increased by 14% to R4,9 billion, driven by price inflation of 12% and favourable foreign exchange translation gains of 7%, offset by volume declines of 5%. Total operating income increased by 71% to R601 million, benefiting from improved profitability across all segments, especially Exports and Deciduous Fruit, and an improvement in the quality of the debtor's book.

We have seen a step change in trajectory for the Rest of Africa business, with Exports reporting a marked improvement in volumes, revenue and profitability. This has been driven by the rejuvenation and remodelling of our key distributor model, allowing for improved in-country visibility and availability of our brands. As a result, the improved sales momentum achieved in the first half for the Exports business was sustained in the second half, resulting in full-year revenue growth of 23% to R2,5 billion. Higher volumes, improved realisations, as well as better factory efficiencies resulted in operating income increasing significantly to R286 million (2022: R143 million).

Chococam's revenue increased by 30% to R1,4 billion (15% in local currency), comprising 9% volume growth and 8% price inflation, supported by favourable foreign currency translation movement of 13%. Volumes were driven by a strong performance from the spreads segment, while pricing stability and optimal packaging solutions resulted in market share gains. Operating income in rand terms increased by 22% to R222 million (8% in local currency) driven by sound cost-containment initiatives and the benefit of rand weakness on translation.

The sale process for Deciduous Fruit (Langeberg & Ashton Foods) was re-opened earlier in the year, with the final stage of a due diligence process currently underway. The business will continue in its current form to allow the due diligence process to be completed.