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| R'million | Notes | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
|
| Continuing operations | |||||
| Total revenue | 16 758,1 | 16 445,0 | 30 953,9 | ||
| Revenue | 16 758,1 | 16 445,0 | 31 208,8 | ||
| Impact of product recall | 2 | (254,9) | |||
| Total cost of sales | (11 870,3) | (11 414,1) | (22 143,7) | ||
| Cost of sales | (11 870,3) | (11 414,1) | (21 750,2) | ||
| Impact of product recall | 2 | (308,3) | |||
| Impact of civil unrest | 3 | (85,2) | |||
| Gross profit | 4 887,8 | 5 030,9 | 8 810,2 | ||
| Sales and distribution expenses | (2 164,1) | (2 033,5) | (4 047,8) | ||
| Marketing expenses | (507,0) | (529,2) | (905,5) | ||
| Other operating expenses | (886,2) | (910,7) | (1 673,1) | ||
| Sundry income | 2, 3 | 171,7 | – | – | |
| Expected credit loss (raised)/reversed | (8,8) | 21,3 | 51,7 | ||
| Operating income before impairments and non-operational items | 4 | 1 493,4 | 1 578,8 | 2 235,5 | |
| Impairments | 5 | – | – | (154,2) | |
| Operating income after impairments | 1 493,4 | 1 578,8 | 2 081,3 | ||
| Non-operational items | 6 | 10,7 | 43,2 | 27,2 | |
| Profit including non-operational items | 1 504,1 | 1 622,0 | 2 108,5 | ||
| Finance costs | (44,2) | (33,0) | (57,0) | ||
| Finance income | 10,3 | 3,6 | 2,8 | ||
| Foreign exchange profit/(loss) | 5,1 | (56,3) | (8,7) | ||
| Investment income | 11,6 | 12,7 | 17,8 | ||
| Income from associated companies | 181,7 | 177,0 | 345,9 | ||
| Loss on disposal of investment in associated company | – | – | (10,8) | ||
| Profit before taxation | 1 668,6 | 1 726,0 | 2 398,5 | ||
| Taxation | (439,3) | (461,3) | (596,7) | ||
| Profit for the period from continuing operations | 1 229,3 | 1 264,7 | 1 801,8 | ||
| Discontinued operations | |||||
| Profit for the period from discontinued operations | 8 | – | 135,3 | 119,8 | |
| Profit for the period | 1 229,3 | 1 400,0 | 1 921,6 | ||
| Attributable to: | |||||
| Owners of the parent | 1 214,8 | 1 386,3 | 1 893,1 | ||
| – Continuing operations | 1 214,8 | 1 251,0 | 1 773,3 | ||
| – Discontinued operations | – | 135,3 | 119,8 | ||
| Non-controlling interests | 14,5 | 13,7 | 28,5 | ||
| – Continuing operations | 14,5 | 13,7 | 28,5 | ||
| 1 229,3 | 1 400,0 | 1 921,6 | |||
| Basic earnings per ordinary share (cents) | 733,2 | 836,5 | 1 142,3 | ||
| – Continuing operations | 733,2 | 754,9 | 1 070,0 | ||
| – Discontinued operations | – | 81,6 | 72,3 | ||
| Diluted basic earnings per ordinary share (cents) | 722,9 | 827,2 | 1 130,0 | ||
| – Continuing operations | 722,9 | 746,5 | 1 058,5 | ||
| – Discontinued operations | – | 80,7 | 71,5 | ||
| Headline earnings per ordinary share (cents) | 728,8 | 741,2 | 1 126,8 | ||
| – Continuing operations | 728,8 | 740,8 | 1 127,3 | ||
| – Discontinued operations | – | 0,4 | (0,5) | ||
| Diluted headline earnings per ordinary share (cents) | 718,5 | 733,1 | 1 114,8 | ||
| – Continuing operations | 718,5 | 732,7 | 1 115,3 | ||
| – Discontinued operations | – | 0,4 | (0,5) | ||
| R'million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Profit for the period | 1 229,3 | 1 400,0 | 1 921,6 |
|---|---|---|---|
| Other comprehensive loss, net of tax | (77,3) | (319,5) | (329,3) |
| Net gain on hedge of net investment in foreign operation1 | – | 3,8 | (8,7) |
| Foreign currency translation (FCTR) adjustments1 | (56,8) | (236,1) | (180,2) |
| Share of associates' other comprehensive loss and FCTR1 | (23,5) | (111,0) | (156,0) |
| Net gain on cash flow hedges1 | 37,8 | 1,5 | 5,8 |
| Net (loss)/gain on FVOCI2 financial assets1 | (34,8) | 22,3 | 20,3 |
| Remeasurement raised in terms of IAS 19R | – | – | (30,3) |
| Tax effect | – | – | 19,8 |
| Total comprehensive income for the period, net of tax | 1 152,0 | 1 080,5 | 1 592,3 |
| Attributable to: | |||
| Owners of the parent | 1 146,5 | 1 075,9 | 1 584,7 |
| Non-controlling interests | 5,5 | 4,6 | 7,6 |
| 1 152,0 | 1 080,5 | 1 592,3 |
| 1 | Items that may be subsequently reclassified to profit or loss including the related tax effects, with the exception of a R5,8 million loss (2021: R5,1 million loss) relating to the share of associates’ other comprehensive income, and fair value gains/(losses) on equity instruments measured at FVOCI. |
| 2 | FVOCI – fair value through other comprehensive income. |
| R'million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Assets | |||
| Non-current assets | 11 382,0 | 11 344,6 | 11 470,3 |
| Property, plant and equipment* | 5 498,0 | 5 317,6 | 5 481,3 |
| Goodwill | 1 177,7 | 1 180,0 | 1 179,9 |
| Intangible assets | 1 721,0 | 1 732,5 | 1 728,7 |
| Investments | 2 954,5 | 3 064,2 | 3 046,8 |
| Deferred taxation asset | 30,8 | 50,3 | 33,6 |
| Current assets | 10 760,5 | 11 123,2 | 11 361,6 |
| Inventories | 6 529,0 | 5 990,1 | 5 904,7 |
| Trade and other receivables | 3 613,3 | 3 925,3 | 3 295,1 |
| Cash and cash equivalents | 618,2 | 1 207,8 | 2 161,8 |
| Assets classified as held for sale | – | 22,6 | – |
| Total assets | 22 142,5 | 22 490,4 | 22 831,9 |
| Equity and liabilities | |||
| Total equity | 15 326,6 | 15 703,4 | 15 702,4 |
| Issued capital and reserves | 15 174,6 | 15 539,9 | 15 555,0 |
| Non-controlling interests | 152,0 | 163,5 | 147,4 |
| Non-current liabilities | 1 240,7 | 1 255,5 | 1 145,9 |
| Deferred taxation liability | 181,6 | 371,5 | 183,1 |
| Post-retirement medical aid obligation | 422,8 | 532,6 | 563,8 |
| Long-term borrowings** | 636,3 | 351,4 | 399,0 |
| Current liabilities | 5 575,2 | 5 528,6 | 5 983,6 |
| Trade and other payables | 4 870,9 | 4 851,6 | 5 131,5 |
| Employee-related accruals | 415,5 | 458,0 | 527,1 |
| Taxation | 110,8 | 35,9 | 156,7 |
| Short-term borrowings** | 178,0 | 183,1 | 168,3 |
| Liabilities directly associated with assets classified as held for sale | – | 2,9 | – |
| Total equity and liabilities | 22 142,5 | 22 490,4 | 22 831,9 |
| Net cash** | 318,2 | 1 205,7 | 2 161,8 |
| * | Right-of-use assets are included within property, plant and equipment. |
| ** | The lease liabilities have been included in the long and short-term borrowings respectively. The lease liabilities have been excluded from the net cash as these are non-cash in nature. Also included in long-term borrowings is R300 million relating to the drawdown on the revolving credit facility. |
| R'million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Cash operating profit | 2 088,2 | 2 017,0 | 3 845,0 |
|---|---|---|---|
| Working capital changes | (1 571,5) | (334,7) | 109,8 |
| Cash generated from operations | 516,7 | 1 682,3 | 3 954,8 |
| Finance income and income from investments received | 22,0 | 16,3 | 30,6 |
| Finance costs paid | (44,2) | (33,5) | (68,4) |
| Dividends received from associated companies | 222,8 | – | 115,4 |
| Taxation paid | (476,6) | (469,5) | (735,4) |
| Cash available from operations | 240,7 | 1 195,6 | 3 297,0 |
| Dividends paid | (859,0) | (1 139,2) | (1 684,3) |
| Net cash (outflow)/inflow from operating activities | (618,3) | 56,4 | 1 612,7 |
| Purchase of property, plant and equipment | (419,1) | (381,0) | (1 013,7) |
| Funds held in escrow | (41,8) | (122,7) | (196,1) |
| Purchase of investment | (5,4) | – | – |
| Loans advanced | – | – | (26,0) |
| Proceeds on disposal of investment | 1,9 | 0,3 | 0,3 |
| Cash on disposal of division | – | 153,0 | 153,0 |
| Proceeds on disposal of intangible assets | – | 56,0 | 56,0 |
| Proceeds on disposal of property, plant and equipment | – | 30,8 | 30,8 |
| Proceeds on disposal of investment in associated company | – | – | 139,9 |
| Cash outflow from investing activities | (464,4) | (263,6) | (855,8) |
| Net cash (outflow)/inflow before financing activities | (1 082,7) | (207,2) | 756,9 |
| Black Managers Trust (BMT) shares exercised | 1,8 | 1,1 | 3,5 |
| Shares exercised relating to equity-settled scheme | (1,0) | (17,9) | (17,9) |
| Repayment of lease liabilities | (104,6) | (98,7) | (216,7) |
| Long-term borrowings raised | 300,0 | – | – |
| Short-term borrowings repaid | – | (14,1) | (14,2) |
| Repurchase of shares | (675,7) | – | – |
| Net cash outflow from financing activities | (479,5) | (129,6) | (245,3) |
| Net (decrease)/increase in cash and cash equivalents | (1 562,2) | (336,8) | 511,6 |
| Effect of exchange rate changes on cash and cash equivalents | 18,6 | (233,3) | (129,3) |
| Cash and cash equivalents at the beginning of the period | 2 161,8 | 1 779,5 | 1 779,5 |
| Cash and cash equivalents at the end of the period | 618,2 | 1 209,4 | 2 161,8 |
| Cash resources | 618,2 | 1 207,8 | 2 161,8 |
| Short-term borrowings regarded as cash and cash equivalents | – | (2,1) | – |
| Discontinued operations | – | 3,7 | – |
| 618,2 | 1 209,4 | 2 161,8 |
| R'million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Capital commitments | 1 191,0 | 1 325,2 | 1 783,6 |
|---|---|---|---|
| – Contracted | 635,7 | 567,4 | 277,0 |
| – Approved | 555,3 | 757,8 | 1 506,6 |
| Capital commitments will be funded from normal operating cash flows and the utilisation of existing borrowing facilities. | |||
| Capital expenditure | 419,1 | 381,0 | 1 013,7 |
| – Replacement | 267,9 | 295,9 | 762,2 |
| – Expansion | 151,2 | 85,1 | 251,5 |
| Replacement capital expenditure in line with approved capex plan. | |||
| Guarantees | |||
| – Guarantees (in issue) | 23,1 | 20,1 | 23,4 |
| R'million | Share capital and premium |
Non- distributable reserves |
Accumulated profits |
Shares held by subsidiary and empowerment entities |
| Balance at 1 October 2020 | 142,0 | 3 173,4 | 13 825,1 | (2 199,8) |
| Profit for the period | – | – | 1 386,3 |
– |
| Other comprehensive loss | – | (310,4) | – | – |
| Total comprehensive (loss)/income | – | (310,4) | 1 386,3 | – |
| Transfers between reserves | – | 177,0 | (169,6) | – |
| Share-based payment1 | – | – | – | – |
| Dividends on ordinary shares (net of dividend on treasury shares) | – | – | (1 139,6) | – |
| Balance at 31 March 2021 | 142,0 | 3 040,0 | 13 902,2 | (2 199,8) |
| Profit for the period | – | – | 506,8 | – |
| Other comprehensive income/(loss) | – | 12,7 | (10,7) | – |
| Total comprehensive income/(loss) | – | 12,7 | 496,1 | – |
| Disposal of subsidiary | – | 41,7 | – | – |
| Transfers between reserves | – | – | (41,7) | – |
| Share-based payment1 | – | – | – | – |
| Dividends on ordinary shares (net of dividend on treasury shares) | – | – | (544,0) | – |
| Sale of empowerment shares2 | – | – | – | 6,3 |
| Balance at 30 September 2021 | 142,0 | 3 094,4 | 13 812,6 | (2 193,5) |
| Profit for the period | – | – | 1 214,8 | – |
| Other comprehensive loss | – | (68,3) | – | – |
| Total comprehensive (loss)/income | – | (68,3) | 1 214,8 | – |
| Transfers between reserves | – | (41,1) | 41,1 | – |
| Share buy-back transaction3 | (123,4) | – | (552,3) | – |
| Share-based payment1 | – | – | – | – |
| Dividends on ordinary shares (net of dividend on treasury shares) | – | – | (858,1) | – |
| Sale of empowerment shares2 | – | – | – | 2,5 |
| Balance at 31 March 2022 | 18,6 | 2 985,0 | 13 658,1 | (2 191,0) |
| 1 | Included in the movement of the share-based payment are options of R1,0 million (2021: R17,9 million) exercised. |
| 2 | Relates to the exercising of options vested post the December 2014 lock-in period in terms of the Black Managers Participation Right Scheme (BMT). |
| 3 | During the six-month period ended 31 March 2022, the group embarked on a share buy-back programme, in which 4 163 926 of the Tiger Brands shares were repurchased at an average price of R161,76 per share. The shares were issued at an original par value of R0,1 per share. |
| R'million | Share-based payment reserve |
Total attributable to owners of the parent |
Non- controlling interests |
Total equity |
| Balance at 1 October 2020 | 687,4 | 15 628,1 | 159,3 | 15 787,4 |
|---|---|---|---|---|
| Profit for the period | – |
1 386,3 |
13,7 |
1 400,0 |
| Other comprehensive loss | – | (310,4) | (9,1) | (319,5) |
| Total comprehensive (loss)/income | – | 1 075,9 | 4,6 | 1 080,5 |
| Transfers between reserves | – | 7,4 | – | 7,4 |
| Share-based payment1 | (24,5) | (24,5) | – | (24,5) |
| Dividends on ordinary shares (net of dividend on treasury shares) | – | (1 139,6) | (0,4) | (1 140,0) |
| Balance at 31 March 2021 | 662,9 | 15 547,3 | 163,5 | 15 710,8 |
| Profit for the period | – | 506,8 | 14,8 | 521,6 |
| Other comprehensive income/(loss) | – | 2,0 | (11,8) | (9,8) |
| Total comprehensive income/(loss) | – | 508,8 | 3,0 | 511,8 |
| Disposal of subsidiary | – | 41,7 | – | 41,7 |
| Transfers between reserves | (7,4) | (49,1) | – | (49,1) |
| Share-based payment1 | 44,0 | 44,0 | – | 44,0 |
| Dividends on ordinary shares (net of dividend on treasury shares) | – | (544,0) | (19,1) | (563,1) |
| Sale of empowerment shares2 | – | 6,3 | – | 6,3 |
| Balance at 30 September 2021 | 699,5 | 15 555,0 | 147,4 | 15 702,4 |
| Profit for the period | – | 1 214,8 | 14,5 | 1 229,3 |
| Other comprehensive loss | – | (68,3) | (9,0) | (77,3) |
| Total comprehensive (loss)/income | – | 1 146,5 | 5,5 | 1 152,0 |
| Transfers between reserves | – | – | – | – |
| Share buy-back transaction3 | – | (675,7) | – | (675,7) |
| Share-based payment1 | 4,4 | 4,4 | – | 4,4 |
| Dividends on ordinary shares (net of dividend on treasury shares) | – | (858,1) | (0,9) | (859,0) |
| Sale of empowerment shares2 | – | 2,5 | – | 2,5 |
| Balance at 31 March 2022 | 703,9 | 15 174,6 | 152,0 | 15 326,6 |
| 1 | Included in the movement of the share-based payment are options of R1,0 million (2021: R17,9 million) exercised. |
| 2 | Relates to the exercising of options vested post the December 2014 lock-in period in terms of the Black Managers Participation Right Scheme (BMT). |
| 3 | During the six-month period ended 31 March 2022, the group embarked on a share buy-back programme, in which 4 163 926 of the Tiger Brands shares were repurchased at an average price of R161,76 per share. The shares were issued at an original par value of R0,1 per share. |
| R'million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
|||
| Revenue | ||||||
| Domestic operations | 14 836,1 | 14 607,0 | 27 620,6 | |||
| Grains | 7 350,8 | 7 463,5 | 14 589,5 | |||
| Milling and Baking1 | 4 945,9 | 5 051,4 | 10 118,7 | |||
| Other Grains2 | 2 404,9 | 2 412,1 | 4 470,8 | |||
| Consumer Brands | 6 390,7 | 6 041,8 | 11 080,4 | |||
| Groceries | 3 400,8 | 3 075,6 | 5 532,6 | |||
| Snacks & Treats | 1 069,1 | 1 218,5 | 2 297,7 | |||
| Beverages | 1 033,3 | 948,0 | 1 656,1 | |||
| Baby | 577,8 | 543,5 | 1 096,7 | |||
| Out of Home | 309,7 | 256,2 | 497,3 | |||
| Home and Personal Care (HPC) | 1 094,6 | 1 101,7 | 1 950,7 | |||
| Personal Care | 279,3 | 271,3 | 643,3 | |||
| Home Care | 815,3 | 830,4 | 1 307,4 | |||
| Exports and International | 1 922,0 | 1 838,0 | 3 588,2 | |||
| Exports3 | 954,4 | 930,2 | 1 795,5 | |||
| International operation – Central Africa (Chococam) | 542,2 | 531,5 | 1 010,2 | |||
| Deciduous Fruit (LAF) | 697,8 | 585,7 | 1 210,6 | |||
| Other intergroup sales | (272,4) | (209,4) | (428,1) | |||
| Total revenue from continuing operations – before the product recall | 16 758,1 | 16 445,0 | 31 208,8 | |||
| Impact of product recall (refer note 2) | – | – | (254,9) | |||
| Total revenue from continuing operations | 16 758,1 | 16 445,0 | 30 953,9 | |||
| Discontinued operation – Value Added Meat Products | – | 92,4 | 119,9 | |||
| Total revenue | 16 758,1 | 16 537,4 | 31 073,8 |
| All segments operate on an arm’s-length basis in relation to inter-segment pricing. | |
| 1 | Comprises maize milling, wheat milling and baking and sorghum-based products. |
| 2 | Comprises rice, pasta and oat-based breakfast cereals. |
| 3 | The key markets contributing to Exports revenue are Mozambique at 41% (2021: 42%); Zambia at 6% (2021: 11%); Zimbabwe at 10% (2021: 9%); and Nigeria at 2% (2021: 5%). |
| R'million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
|||
| Operating income before impairments and non-operational items |
||||||
| Domestic operations | 1 283,7 | 1 489,4 | 2 915,0 | |||
| Grains | 422,9 | 619,2 | 1 369,4 | |||
| Milling and Baking1 | 272,2 | 477,0 | 1 016,0 | |||
| Other Grains2 | 150,7 | 142,2 | 353,4 | |||
| Consumer Brands | 653,8 | 639,7 | 1 131,1 | |||
| Groceries | 290,8 | 221,9 | 396,5 | |||
| Snacks & Treats | 55,6 | 135,5 | 233,8 | |||
| Beverages | 175,1 | 175,0 | 260,5 | |||
| Baby | 65,1 | 55,9 | 143,0 | |||
| Out of Home | 67,2 | 51,4 | 97,3 | |||
| Home and Personal Care (HPC) | 212,2 | 251,5 | 432,6 | |||
| Personal Care | (14,2) | (9,4) | 46,9 | |||
| Home Care | 226,4 | 260,9 | 385,7 | |||
| Other3 | (5,2) | (21,0) | (18,1) | |||
| Exports and International | 63,5 | 85,1 | 96,2 | |||
| Exports |
29,2 | 51,2 | 71,3 | |||
| International operation – Central Africa (Chococam) | 88,4 | 85,5 | 172,3 | |||
| Deciduous Fruit (LAF) | (54,1) | (51,6) | (147,4) | |||
| Total operating income from continuing operations before the following items | 1 347,2 | 1 574,5 | 3 011,2 | |||
| Impact of product recall (refer note 2) | 17,4 | – | (646,8) | |||
| Impact of the civil unrest (refer note 3) | 143,8 | – | (85,2) | |||
| Restructuring and related costs | (6,5) | – | (2,4) | |||
| IFRS 2 charges | (8,5) | 4,3 | (41,3) | |||
| Total operating income from continuing operations | 1 493,4 | 1 578,8 | 2 235,5 | |||
| Discontinued operation – Value Added Meat Products | – | (7,8) | 19,1 | |||
| Discontinued operation – West Africa (Deli Foods) | – | 0,7 | – | |||
| Total operating income | 1 493,4 | 1 571,7 | 2 254,6 |
| All segments operate on an arm’s-length basis in relation to inter-segment pricing. | |
| 1 | Comprises maize milling, wheat milling and baking and sorghum-based products. |
| 2 | Comprises rice, pasta and oat-based breakfast cereals. |
| 3 | Includes the corporate office and management expenses relating to international investments. |
The preparation of these results has been supervised by Deepa Sita, Chief Financial Officer of Tiger Brands Limited.
The condensed consolidated interim results for the six months ended 31 March 2022 have been prepared in accordance with the International Financial Reporting Standard, (IAS 34) Interim Financial Reporting, the requirements of the South African Companies Act No 71 of 2008 and the Listings Requirements of the JSE Limited. These statements have not been audited or reviewed by the group’s auditors.
The accounting policies adopted in the preparation of the condensed consolidated interim results are consistent with those applied in preparation of the group’s annual consolidated financial statements for the year ended 30 September 2021. A majority of the group’s financial instruments measured at fair value in terms of IFRS 13, are noted as level 1 hierarchy, which are valued based on quoted market prices.
During the second half of the 2021 financial year, a product recall was initiated on selected canned vegetable products within the Groceries business over safety concerns linked to defective cans. The details of the recall are disclosed in the 2021 financial statements. Insurance proceeds of R17,4 million (net of Value Added Tax) have been received to date.
The total impact of the recall has been accounted for on the income statement as follows:
| R’million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Revenue impact | 254,9 | ||
| Cost of sales impact | 308,3 | ||
| Associated costs included in sales and distribution expenses | 68,7 | ||
| Associated costs included in marketing expenses | 10,0 | ||
| Associated costs included in other operating expenses | 4,9 | ||
| Insurance proceeds received included in sundry income | (17,4) | ||
| Total cost of product recall | (17,4) | – | 646,8 |
The July 2021 civil unrest in KwaZulu-Natal (KZN) particularly impacted the Rice and Snacks & Treats businesses. This resulted in inventory write-offs across the two businesses, as well as physical damage and loss to property, plant and equipment. The unrest also resulted in lost sales across the business up to 31 August 2021. During the current year, the group has received initial insurance claims relating to the civil unrest from the South African Special Risks Insurance Association (SASRIA). In total, R154,5 million (net of Value Added Tax) has been received to date, of which R10,7 million relates to insurance proceeds on fixed assets written off following the civil unrest. The remaining insurance proceeds which relate to stock write-offs, repairs to damaged property, plant and equipment, cleaning and security costs, have been accounted for as sundry income.
| R’million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Operating income has been determined after charging | |||
| Depreciation (included in cost of sales and other operating expenses) | 419,7 | 418,5 | 799,0 |
| Amortisation | 3,7 | 4,6 | 8,6 |
| IFRS 2 (included in other operating expenses) | |||
| – Equity settled | 5,4 | 6,5 | 37,5 |
| – Cash settled | 3,1 | 2,2 | 3,8 |
Goodwill and indefinite useful life intangible assets are tested for impairment annually (as at 30 September) and when circumstances indicate that the carrying value may be impaired. The group’s impairment tests for goodwill and intangible assets with indefinite useful lives are based on the value-in-use calculations. The key assumptions used to determine the recoverable amount for the different cash-generating units were disclosed in the annual consolidated financial statements for the year ended 30 September 2021. In the previous financial period, property, plant and equipment in the Deciduous Fruit business (LAF) was fully impaired by R139,1 million.
The impact of Covid-19-related economic challenges, as well as the ongoing Ukraine/Russia conflict as far as could be estimated, in the short and medium term, have been factored into the cash flows forecasts.
Based on management’s assumptions, no impairments have been recorded at 31 March 2022.
| R’million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Impairment of property, plant and equipment | – | – | (154,2) |
|---|
| R’million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Insurance proceeds on civil unrest | 10,7 | – | – |
|---|---|---|---|
| Profit on disposal of intangible asset | – | 43,0 | 43,0 |
| Civil unrest asset write-offs | – | – | (15,8) |
| Profit on disposal of property | – | 0,2 | – |
| 10,7 | 43,2 | 27,2 |
| R’million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Continuing operations | |||
| Profit for the period attributable to owners of the parent | 1 214,8 | 1 251,0 | 1 773,3 |
| Impairment of property, plant and equipment | – | – | 111,1 |
| Civil unrest asset write-offs | – | – | 11,3 |
| Loss on disposal of investment in associated company | – | – | 10,8 |
| Profit on disposal of intangible assets | – | (33,3) | (35,3) |
| Profit/(loss) on disposal of property, plant, equipment and vehicles | 0,4 | 10,2 | (1,4) |
| Insurance proceeds on property, plant and equipment | (7,8) | – | – |
| Headline earnings adjustment – associates | |||
| – Profit on disposal of investment | – | – | (1,4) |
| Headline earnings for the period | 1 207,4 | 1 227,9 | 1 868,4 |
| Tax effect of headline earnings | 2,9 | (9,7) | (39,3) |
| Discontinued operations | |||
| Profit for the period attributable to owners of the parent | – | 135,3 | 119,8 |
| Profit on disposal of plant, equipment and vehicles | – | (25,9) | (7,5) |
| Profit on disposal of intangible asset | – | (16,0) | (20,5) |
| Release of foreign currency translation reserve on closure of foreign subsidiary | – | (92,7) | (92,7) |
| Headline earnings for the period | – | 0,7 | (0,9) |
Profit for the period from discontinued operations (attributable to owners of the company)
The comparative periods reflect the results of the discontinued operations Deli Foods Nigeria Limited (Deli Foods) and Value Added Meat Products (VAMP), a division of Tiger Consumer Brands Limited. These are stated below.
| R’million | Unaudited six months ended 31 March 2022 |
Unaudited six months ended 31 March 2021 |
Audited year ended 30 September 2021 |
| Revenue | – | 92,4 | 119,9 |
|---|---|---|---|
| Expenses | – | (99,5) | (100,8) |
| Operating (loss)/profit before impairments and non-operational items | – | (7,1) | 19,1 |
| Non-operational items | – | 142,2 | 122,0 |
| Operating profit after impairments and non-operational items | – | 135,1 | 141,1 |
| Finance costs | – | (0,5) | (0,5) |
| Profit before taxation | – | 134,6 | 140,6 |
| Taxation | – | 0,7 | (20,8) |
| Profit for the period from discontinued operations | – | 135,3 | 119,8 |
| Attributable to non-controlling interest | – | – | – |
| Attributable to owners of the parent | – | 135,3 | 119,8 |
| Cash flows from discontinued operations | |||
| Net cash outflows from operating activities | – | (87,7) | (5,9) |
| Net cash inflows from investing activities | – | 110,8 | 21,9 |
| Net cash outflows from financing activities | – | (11,0) | (6,7) |
| Net cash inflows | – | 12,1 | 9,3 |
There are no material events that occurred during the period subsequent to 31 March 2022 and prior to these financial results being authorised for issue.