Composition of revenue Revenue comprises amounts earned from customers from the sale of frozen, chilled, ambient and non-food products (goods) and services. Revenue recognition Revenue is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer, recovery of the consideration is considered probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the transaction at reporting date. The stage of completion is time based and dependent on the terms of the contract. Revenue from commissions and fees is recognised in the statement of profit or loss in proportion to the stage of completion of the transaction at the statement of financial position date. As at July 1 2018 there was no significant impact from the adoption of IFRS 15 Revenue from Contracts from Customers due to the group not being involved in material multiple-element arrangements with customers. Therefore, no transition adjustments have been processed to retained earnings. The majority of the group’s revenue is earned through the sale of goods relating to frozen, ambient, chilled and other non-food-related products. |
| 2018 R’000 |
2017 R’000 |
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| 4.2 | Operating profit | |||||
| Determined after charging (crediting) | ||||||
| Auditors’ remuneration | 46 057 | 45 860 | ||||
| KPMG audit fees and related expenses | 37 310 | 36 821 | ||||
| KPMG-related taxation, consulting, other related expenses | 4 183 | 5 112 | ||||
| Other audit firm fees and related expenses | 4 564 | 3 927 | ||||
| Depreciation of property, plant and equipment disclosed as continuing operations | 1 043 339 | 990 084 | ||||
| Leasehold premises | 81 692 | 81 553 | ||||
| Plant and equipment | 341 539 | 345 247 | ||||
| Office equipment, furniture and fittings | 141 144 | 127 596 | ||||
| Vehicles | 478 964 | 435 688 | ||||
| Depreciation of property, plant and equipment disclosed as discontinued operation | 19 356 | 19 468 | ||||
| Amortisation of intangible assets disclosed as continuing operations | 149 624 | 176 803 | ||||
| Patents, trademarks, tradenames and other intangibles | 58 101 | 53 516 | ||||
| Computer software | 91 523 | 123 287 | ||||
| Amortisation of intangible assets disclosed as discontinued operation | 3 076 | 4 780 | ||||
| Directors’ emoluments (full details of executive and non-executive remuneration are included in note 11.2) | ||||||
| Executive directors | 44 322 | 75 022 | ||||
| Basic remuneration | 20 304 | 32 247 | ||||
| Retirement and medical benefits | 690 | 1 198 | ||||
| Other benefits and costs | 446 | 1 177 | ||||
| Cash incentives | 22 882 | 40 400 | ||||
| Non-executive director emoluments | 11 351 | 3 969 | ||||
| Employer contributions to | 757 136 | 632 771 | ||||
| Defined contribution pension funds | 265 012 | 245 775 | ||||
| Provident funds | 20 996 | 22 374 | ||||
| Retirement funds | 25 275 | 23 311 | ||||
| Social securities | 391 083 | 293 831 | ||||
| Medical aids | 54 770 | 47 480 | ||||
| Defined benefit pension plans-related expenses | 17 103 | 16 102 | ||||
| Share-based payment expense disclosed as continuing operations | 99 236 | 94 113 | ||||
| Bidvest Incentive Scheme (BIS) | 23 001 | 48 812 | ||||
| Bid Corporation Limited Share Appreciation Rights Plan (SARs) | 45 212 | 27 127 | ||||
| Bidcorp Conditional Share Plan (CSP) | 31 023 | 18 174 | ||||
| Staff costs excluding directors’ emoluments and employer contributions | 13 308 356 | 12 260 415 | ||||
| Foreign exchange (gains) losses on hedging activities | (25 379) | 1 678 | ||||
| Forward exchange contracts | (25 276) | 1 618 | ||||
| Foreign bank accounts | (103) | 60 | ||||
| Other foreign exchange losses (gains) | 4 678 | (12 204) | ||||
| Realised | (1 971) | (6 520) | ||||
| Unrealised | 6 649 | (5 684) | ||||
| Impairment of assets relating to continuing operations# | 235 607 | 407 664 | ||||
| Property, plant and equipment | 28 448 | 93 727 | ||||
| Goodwill | 200 216 | 176 174 | ||||
| Investment held at fair value through other comprehensive income | 1 329 | 43 379 | ||||
| Intangible assets | 5 347 | 94 384 | ||||
| Associates | 267 | – | ||||
| Net capital profit# | (32 464) | (543 361) | ||||
| Net profit on disposal of property, plant and equipment | (15 318) | (7 122) | ||||
| Net profit on disposal of intangible assets | – | (14 203) | ||||
| Net loss (profit) on disposal of interests in subsidiaries and associate | 9 050 | (522 036) | ||||
| Gain from bargain purchase | (4 222) | – | ||||
| Insurance proceeds received in relation to the impairment of property, plant and equipment | (21 974) | – | ||||
| Operating lease charges | 1 177 009 | 1 090 285 | ||||
| Land and buildings | 770 162 | 682 916 | ||||
| Equipment and vehicles | 406 847 | 407 369 | ||||
| # Items above included as capital items on consolidated statement of profit or loss | 203 143 | (135 697) |
| 4.3 | Segmental operational performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The group has the following strategic segments: Australasia, United Kingdom, Europe, Emerging Markets, and Corporate, which are the reportable segments. The reportable segments of the group have been identified based on the geographies of the businesses. This basis is representative of the internal structure for management purposes and management reports are reviewed by the executive management team on a monthly basis. “Segmental trading profit” is defined as operating profit excluding items of a capital nature and is the basis on which management’s performance is assessed. Share-based payment costs are also excluded from the result as this is not a criteria used in the management of the reportable segments. There is no individual customer who contributes more than 10% to the group’s total revenue.
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