ANNUAL FINANCIAL STATEMENTS 2024

for the year ended 30 September 2024

Segment report

for the year ended 30 September 2024

During the current financial year, the business adopted an updated operating model whereby the operating segments were realigned into six business units. These business units are shown below and the prior year comparatives have been restated to reflect these changes. The group has taken the considerations of the IFRS Interpretations Committee latest agenda decision from July 2024 in applying the requirements in paragraph 23 of IFRS 8 Operating Segments, and therefore cost of sales and staff costs have been included as material items.

The group has reportable segments that comprise the structure used by the chief operating decision maker (CODM) to make key operating decisions and assess performance. The group’s reportable segments are operating segments that are differentiated by the activities that each undertakes and the products they manufacture and market (referred to as business segments).

The group evaluates the performance of its reportable segments based on operating income. The group accounts for inter-segment sales and transfers at factory absorbed costs. The tables below comprise external revenue and cost of sales.

The financial information of the group’s reportable segments is reported to the CODM for purposes of making decisions about allocating resources to the segment and assessing its performance. The segments disclosed below include local, export and food service solutions distribution channels.

  Revenue   Cost of sales   Operating income
before impairments
and non-operational
items
  Depreciation and
amortisation
(R'million) 2024 2023   2024 2023   2024 2023   2024 2023
Milling and Baking1 8 165,6 9 075,5   5 410,8 6 259,9   634,4 676,7   198,7 197,4
Grains2 8 533,0 8 368,0   6 815,2 6 531,8   91,3 202,0   90,2 86,2
Culinary3 8 863,6 8 446,4   6 690,8 6 812,5   819,2 544,0   229,0 214,3
Snacks, Treats and Beverages 5 797,0 5 314,9   3 868,0 3 466,6   719,9 667,2   142,3 129,6
Home, Personal and Baby Care (HPCB) 3 659,6 3 600,3   2 213,4 2 132,6   667,0 657,0   98,1 84,6
Corporate4     (56,9) 22,5   181,3 187,5
International5 2 643,4 2 583,4   1 993,6 1 844,8   323,6 314,2   67,3 50,8
Total from continuing operations before the following items: 37 662,2 37 388,5   26 991,8 27 048,2   3 198,6 3 083,6   1 006,9 950,4
Impact of product recall             6,0      
Insurance proceeds             31,2 136,7      
– Impact of the civil unrest and business interruption             31,2 136,7      
Restructuring and related costs             (14,6) (94,6)      
IFRS 2 charges             (71,4) (13,4)      
Total operations 37 662,2 37 388,5   26 991,8 27 048,2   3 143,8 3 118,2   1 006,9 950,4
1 Comprises wheat milling and baking. Inter-company sales within the segment account for R3,068 billion (2023: R3,444 billion)
2 Comprises maize milling, sorghum-based products, rice, pasta and oat-based breakfast cereals
3 Comprises Culinary and Davita. Inter-company sales within the segment account for R243,9 million (2023: R245,5 million)
4 Includes the corporate office and management expenses relating to international investments
5 Comprises Deciduous fruit (LAF) and Chococam. Inter-company sales within the segment account for R244,1 million (2023: R200,2 million)
  Staff costs
(R'million) 2024 2023
Milling and Baking 1 532,1 1 213,9
Grains 534,9 575,4
Culinary 880,7 844,0
Snacks, Treats and Beverages 655,4 664,9
Home, Personal and Baby Care (HPCB) 209,4 178,0
Corporate
International 409,0 397,7
Total operations 4 221,5 3 873,9
  Total assets Total liabilities Capital expenditure
(R'million) 2024 2023   2024 2023   2024 2023
Milling and Baking 3 110,2 3 152,6   719,8 769,8   171,1 146,4
Grains 2 959,2 2 903,7   1 598,2 1 011,3   85,7 126,5
Culinary 6 859,7 6 771,2   1 426,3 1 467,8   298,7 351,5
Snacks, Treats and Beverages 3 456,9 3 560,9   1 008,3 916,7   147,1 250,9
Home, Personal and Baby Care (HPCB) 1 269,8 1 617,5   335,1 372,0   69,0 109,7
Corporate* 6 625,9 5 899,0   2 307,5 3 155,5   51,6 93,6
International 2 100,0 1 887,5   496,4 516,6   147,2 134,0
Total continuing operations 26 381,7 25 792,4   7 891,6 8 209,7   970,4 1 212,6
* Relates to corporate assets which include goodwill, investments and property, plant and equipment. Corporate liabilities primarily relate to borrowings, employee related accruals, trade and other payables
  Reconciliation of
total liabilities
(R'million) 2024 2023
Total liabilities 7 891,6 8 209,7
Deferred taxation liability 371,2 322,7
Total liabilities per statement of financial position 8 262,8 8 532,4

The geographical segmental disclosure is shown below:

  Revenue Operating income before
impairments and non-operational
items
Split of non-current
assets
(R'million) 2024 2023*   2024 2023   2024 2023
South Africa 30 600,8 30 944,8   2 202,3 2 358,4   8 605,0 8 751,2
Outside South Africa 7 061,4 6 443,7   941,1 759,8   523,2 411,5
– BLNE** 1 722,9 1 592,2   206,7 159,2  
– Cameroon 1 632,7 1 440,7   245,7 221,8   523,2 411,5
– Mozambique 1 053,6 949,8   171,9 133,4  
– Zimbabwe 477,4 290,2   76,7 29,8  
– Zambia 286,9 254,4   24,5 14,4  
– Rest of world 1 887,9 1 916,4   215,6 201,2  
Total operations 37 662,2 37 388,5   3 143,8 3 118,2   9 128,2 9 162,7
Investments             3 950,5 3 707,8
Current assets             13 303,0 12 921,9
Total continuing operations             26 381,7 25 792,4
Assets classified as held for sale - HPCB             40,9
Deferred taxation asset             36,3 44,2
Total assets per statement of financial position             26 458,9 25 836,6
* During the current year, the revenue by geographic region was disaggregated into more detailed country specific disclosure. Through this process an error was identified in the prior year split of revenue of R1,6 billion between South Africa and outside of South Africa, and the prior year revenue has accordingly been restated
** Botswana, Lesotho, Namibia and eSwatini

Industry spread of revenue is outlined in the tables below:

  Retail Wholesale Exports Other Total
(R'million) 2024
Group 19 857,2 9 810,6 7 061.4 933,0 37 662,2
Milling and Baking 4 372,3 3 699,0 0,6 93,7 8 165,6
Grains 5 353,2 2 215,9 725,0 238,9 8 533,0
Culinary 4 056,4 1 897,4 2 645,6 264,2 8 863,6
Snacks, Treats and Beverages 3 708,4 1 253,6 534,1 300,9 5 797,0
Home, Personal Care & Baby (HPCB) 2 366,9 744,7 512,6 35,3 3 659,6
International 2 643,4 2 643,4
  Retail Wholesale Exports Other Total
(R'million) 2023
Group 19 446,3 10 663,6 6 443,7 834,9 37 388,5
Milling and Baking 4 730,1 4 264,9 0,7 79,8 9 075,5
Grains 5 203,0 2 316,1 640,8 208,1 8 368,0
Culinary 3 746,8 2 101,6 2 329,7 268,3 8 446,4
Snacks, Treats and Beverages 3 385,4 1 209,7 465,7 254,1 5 314,9
Home, Personal Care & Baby (HPCB) 2 381,0 771,3 423,4 24,6 3 600,3
International 2 583,4 2 583,4