Unaudited results for the half year ended December 31  2020

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Financials

Condensed interim consolidated statement of profit or loss

for the

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  Half year ended
December 31		         Year ended
June 30		  
R’000 2020
Unaudited		       2019
Unaudited		     %
change		     2020
Audited		  
Continuing operations                        
Revenue 60 766 300       68 215 439     (10,9)     121 117 480  
Cost of revenue (46 536 955)       (51 992 387)     10,5     (91 921 749)  
Gross profit 14 229 345       16 223 052     (12,3)     29 195 731  
Operating expenses (11 989 621)       (12 643 698)     5,2     (25 033 193)  
Trading profit 2 239 724       3 579 354     (37,4)     4 162 538  
   Share-based payment expense (50 132)       (62 316)           (100 774)  
   Acquisition costs (2 033)       (1 590)           (1 968)  
   Capital items 190 195       (6 056)           (923 687)  
Operating profit 2 377 754       3 509 392     (32,2)     3 136 109  
Net finance charges (364 260)       (329 239)     (10,6)     (710 263)  
   Finance income 29 428       45 991           85 647  
   Finance charges (393 688)       (375 230)           (795 910)  
Share of profit of associates and jointly controlled entities 19 304       34 164     (43,5)     6 448  
Profit before taxation 2 032 798       3 214 317     (36,8)     2 432 294  
Taxation (515 322)       (769 845)     33,1     (868 614)  
Profit for the period from continuing operations 1 517 476       2 444 472     (37,9)     1 563 680  
Discontinued operations                        
Loss after taxation from discontinued operations –       (147 732)           (331 578)  
Profit for the period 1 517 476       2 296 740     (33,9)     1 232 102  
Attributable to:                        
Shareholders of the company 1 500 910       2 273 879           1 216 805  
   From continuing operations 1 500 910       2 421 611     (38,0)     1 548 383  
   From discontinued operations –       (147 732)           (331 578)  
Non-controlling interest from continuing operations 16 566       22 861           15 297  
  1 517 476       2 296 740           1 232 102  
Shares in issue (’000)                        
   Total 335 404       335 404           335 404  
   Weighted 334 125       333 836           334 041  
   Diluted weighted 334 503       334 286           334 735  
Continuing operations (cents)                        
   Basic earnings per share 449,2       725,4     (38,1)     463,5  
   Diluted basic earnings per share 448,7       724,4     (38,1)     462,6  
   Headline earnings per share 391,6       728,3     (46,2)     741,3  
   Diluted headline earnings per share 391,1       727,3     (46,2)     739,7  
Discontinued operations (cents)                        
   Basic loss per share –       (44,3)           (99,3)  
   Diluted basic loss per share –       (44,2)           (99,1)  
   Headline loss per share –       (16,1)           (47,3)  
   Diluted headline loss per share –       (16,1)           (47,2)  
Total operations (cents)                        
   Basic earnings per share 449,2       681,1     (34,0)     364,2  
   Diluted basic earnings per share 448,7       680,2     (34,0)     363,5  
   Headline earnings per share 391,6       712,2     (45,0)     694,0  
   Diluted headline earnings per share 391,1       711,2     (45,0)     692,5  
Distributions per share (cents) –       330,0           330,0  

Condensed interim consolidated statement of other comprehensive income

for the

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    Half year ended
December 31		       Year ended
June 30		    
R’000   2020
Unaudited		           2019
Unaudited		           2020
Audited		    
Profit for the period   1 517 476           2 296 740           1 232 102    
Other comprehensive income   (1 654 040)           244 861           4 331 548    
   Items that may be classified subsequently to profit or loss   (1 654 040)           244 861           4 327 684    
   Foreign currency translation reserve                                
      (Decrease) increase in foreign currency translation reserve   (1 654 010)           244 891           4 381 823    
   Cash flow hedges   (30)           (30)           –    
      Fair value loss arising during the period   (37)           (37)           –    
      Taxation relief for the period   7           7           –    
   Movement in investment held at fair value through other comprehensive income   –           –           (54 139)    
   Items that will not be reclassified subsequently to profit or loss                                
   Defined benefit obligations   –           –           3 864    
      Remeasurement of defined benefit obligations   –           –           2 035    
      Deferred taxation charge   –           –           1 829    
Total comprehensive income for the period   (136 564)           2 541 601           5 563 650    
Attributable to:                                
Shareholders of the company   (120 427)           2 523 782           5 506 566    
Non-controlling interest   (16 137)           17 819           57 084    
    (136 564)           2 541 601           5 563 650    

Headline earnings

for the

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  Half year ended
December 31		         Year ended
June 30		  
R’000 2020
Unaudited		       2019
Unaudited		     %
change		     2020
Audited		  
The following adjustments to profit attributable to shareholders were taken into account in the calculation of continuing headline earnings:                        
Profit attributable to shareholders of the company from continuing operations 1 500 910       2 421 611           1 548 383  
Impairments 420 518       20           939 836  
   Property, plant and equipment 319 091       28           116 572  
   Intangible assets 210 678       –           25 638  
   Associates –       –           11 738  
   Goodwill –       –           797 899  
   Taxation relief (109 251)       (8)           (12 011)  
Insurance proceeds in relation to an impairment of property, plant and equipment (27 542)       –           –  
   Insurance proceeds (34 003)       –           –  
   Taxation charge 6 461       –           –  
(Profit) loss on disposal of interest in subsidiary (187)       16 201           16 920  
   (Profit) loss on disposal in subsidiary (259)       14 530           15 175  
   Taxation charge 72       1 671           1 745  
Capital profit on disposal of property, plant and equipment (585 350)       (6 598)           (29 058)  
   Property, plant and equipment (685 702)       (8 502)           (43 335)  
   Taxation charge 100 352       1 904           14 277  
Headline earnings from continuing operations 1 308 349       2 431 234     (46,2)     2 476 081  

Condensed interim segmental analysis

for the

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  Half year ended
December 31		         Year ended
June 30		  
R’000 2020
Unaudited		       2019
Unaudited		     %
change		     2020
Audited		  
Revenue                        
Bidfood                        
   Australasia 16 659 829       15 833 235     5,2     28 986 744  
   United Kingdom 13 614 818       17 787 330     (23,5)     31 462 683  
   Europe 19 539 464       23 040 079     (15,2)     40 199 177  
   Emerging Markets 10 952 189       11 554 795     (5,2)     20 468 876  
  60 766 300       68 215 439     (10,9)     121 117 480  
Trading profit                        
Bidfood 2 294 754       3 626 044           4 233 422  
   Australasia 1 119 914       1 045 922     7,1     1 923 857  
   United Kingdom 295 684       909 354     (67,5)     666 755  
   Europe 429 643       1 098 949     (60,9)     958 081  
   Emerging Markets 449 513       571 819     (21,4)     684 729  
Corporate (55 030)       (46 690)           (70 884)  
  2 239 724       3 579 354     (37,4)     4 162 538  

Condensed interim consolidated statement of cash flows

for the

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  Half year ended
December 31		     Year ended
June 30		  
R’000 2020
Unaudited		       2019 
Unaudited 
Re-presented#		       2020
Unaudited		  
Cash flows from operating activities 2 657 881       1 907 255       3 928 340  
    Operating profit 2 377 754       3 509 392       3 136 109  
    Dividends from jointly controlled entity –       20 000       20 000  
    Acquisition costs 2 033       1 590       1 968  
    Depreciation and amortisation 771 538       684 696       1 534 354  
    Depreciation on right-of-use lease assets 420 224       355 010       771 412  
    Cash-settled incentive scheme –       (272 309)       (299 496)  
    Non-cash items (346 114)       182       2 025 355  
    Cash generated by operations before changes in working capital 3 225 435       4 298 561       7 189 702  
    Changes in working capital 516 462       (239 102)       1 184 435  
    Cash generated by operations 3 741 897       4 059 459       8 374 137  
    Net finance charges paid# (312 080)       (271 529)       (597 214)  
    Taxation paid (771 936)       (950 167)       (1 354 174)  
    Dividends paid –       (1 106 834)       (2 213 668)  
    Net operating cash flows from discontinued operations –       176 326       (280 741)  
Cash effects of investment activities 417 660       (1 571 867)       (3 153 212)  
    Additions to property, plant and equipment (885 666)       (1 382 177)       (2 724 587)  
    Acquisition of subsidiaries (14 277)       (159 297)       (171 604)  
    Additions to intangible assets (67 118)       (98 729)       (191 576)  
    Proceeds on disposal of property, plant and equipment 1 507 769       102 583       370 328  
    Proceeds on disposal of investments 16 691       85 755       72 167  
    Proceeds on disposal of interests in subsidiaries 259       33 185       34 659  
    (Payments to) receipts from associates (480)       3 328       (8 048)  
    Proceeds on disposal of intangible assets 48       54       9 148  
    Payments made to vendors for acquisition (59 074)       (45 017)       (58 553)  
    Payments made to puttable non-controlling interests (69 820)       –       (12 828)  
    Investments acquired (2 644)       (61 287)       (42 832)  
    Advances to jointly controlled entity (8 028)       –       –  
    Net investing cash flows from discontinued operations –       (50 265)       (429 486)  
Cash effects of financing activities (2 786 744)       (771 371)       (912 235)  
    Borrowings raised 2 482 864       2 711 617       6 476 215  
    Borrowings repaid (4 730 611)       (2 967 886)       (6 408 623)  
    Right-of-use liability payments from continuing operations# (414 990)       (410 624)       (720 512)  
    Right-of-use liability payments from discontinued operations –       (86 777)       (230 994)  
    (Payments to) receipts from non-controlling interests (19 310)       (17 701)       (28 321)  
    Treasury shares purchased (104 697)       –       –  
Net increase (decrease) in cash and cash equivalents 288 797       (435 983)       (137 107)  
Cash and cash equivalents at beginning of period 7 024 426       6 058 269       6 058 269  
Exchange rate adjustment (347 152)       27 762       1 103 264  
Cash and cash equivalents at end of period 6 966 071       5 650 048       7 024 426  
Cash and cash equivalents comprise              
Cash and cash equivalents 6 966 071       5 302 854       7 024 426  
Cash and cash equivalents of discontinued operations –       363 661       –  
Bank overdrafts included in short-term borrowings –       (16 467)       –  
  6 966 071       5 650 048       7 024 426  

# Refer to statement of cash flow re-presentation note.

Condensed interim consolidated statement of financial position

as at

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  December 31     June 30  
R’000 2020
Unaudited		       2019
Unaudited		       2020
Audited		  
ASSETS                    
Non-current assets 38 855 903       36 454 844       42 088 766  
   Property, plant and equipment 16 105 265       14 808 095       17 618 435  
   Right-of-use lease assets 4 364 427       4 192 906       4 934 213  
   Intangible assets 610 801       717 008       838 223  
   Goodwill 15 676 529       14 934 254       16 676 574  
   Deferred taxation asset 1 292 810       966 714       1 202 709  
   Defined benefit pension surplus 18 008       20 928       18 008  
   Interest in associates 172 425       160 897       193 364  
   Investment in jointly controlled entities 518 549       499 439       489 933  
   Investments and loans 97 089       154 603       117 307  
Current assets 28 237 801       34 484 658       29 509 639  
   Inventories 9 446 269       9 823 477       10 195 539  
   Trade and other receivables 11 825 461       15 191 469       12 289 674  
   Assets classified as held-for-sale –       4 166 858       –  
   Cash and cash equivalents 6 966 071       5 302 854       7 024 426  
Total assets 67 093 704       70 939 502       71 598 405  
EQUITY AND LIABILITIES                    
Capital and reserves 27 737 051       26 155 892       27 938 586  
   Attributable to shareholders of the company 27 506 468       25 918 507       27 672 556  
   Non-controlling interest 230 583       237 385       266 030  
Non-current liabilities 14 851 993       15 182 942       16 000 901  
   Deferred taxation liability 602 576       688 258       686 554  
   Long-term borrowings 4 243 240       5 500 348       4 565 025  
   Long-term right-of-use lease liabilities 5 137 103       4 527 223       5 363 091  
   Post-retirement obligations    56 642       58 117       67 478  
   Long-term vendors for acquisition 27 840       290 731       73 150  
   Long-term puttable non-controlling interest liabilities 4 249 892       3 805 681       4 632 682  
   Long-term provisions 534 700       312 584       612 921  
Current liabilities 24 504 660       29 600 668       27 658 918  
   Trade and other payables 17 534 795       18 861 832       17 602 244  
   Short-term provisions 483 872       338 471       632 950  
   Short-term vendors for acquisition 154 690       40 448       204 188  
   Short-term puttable non-controlling interest liabilities 26 972       38 917       55 262  
   Liabilities classified as held-for-sale –       4 605 042       –  
   Taxation 204 394       341 028       246 077  
   Short-term right-of-use lease liabilities 807 760       622 535       872 229  
   Short-term borrowings 5 292 177       4 752 395       8 045 968  
Total equity and liabilities 67 093 704       70 939 502       71 598 405  
Net tangible asset value per share (cents) 3 345       3 061       3 029  
Net asset value per share (cents) 8 201       7 728       8 251  

Condensed interim consolidated statement of changes in equity

for the

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    Half year ended
December 31		       Year ended
June 30		    
R’000   2020
Unaudited		           2019
Unaudited		           2020
Audited		    
Equity attributable to shareholders of the company                                
   Stated capital   5 428 016           5 428 016           5 428 016    
   Treasury shares   (299 392)           (248 441)           (247 824)    
      Balance at beginning of period   (247 824)           (435 584)           (435 584)    
      Shares disposed of in terms of share schemes   53 129           187 143           187 760    
      Shares purchased for share schemes   (104 697)           –           –    
   Foreign currency translation reserve   7 988 408           5 513 109           9 609 715    
      Balance at beginning of period   9 609 715           5 263 176           5 263 176    
      Realisation of reserve on foreign subsidiaries   –           –           6 503    
      (Decrease) increase in foreign currency translation reserve   (1 621 307)           249 933           4 340 036    
   Hedging reserve   (1 086)           (1 086)           (1 056)    
      Balance at beginning of period   (1 056)           (1 056)           (1 056)    
      Fair value loss   (37)           (37)           –    
      Deferred taxation recognised directly in reserve   7           7           –    
   Equity-settled share-based payment reserve   311 195           249 770           290 007    
      Balance at beginning of period   290 007           341 798           341 798    
      Arising during period from total operations   50 132           63 506           102 408    
      Deferred taxation recognised directly in reserve   –           –           (22 560)    
      Utilisation during period from total operations   (53 129)           (459 452)           (487 256)    
      Transfer to retained earnings   24 185           303 918           355 617    
   Retained earnings   14 079 327           14 977 139           12 593 698    
      Balance at beginning of period   12 593 698           17 902 350           17 902 350    
      IFRS 16 transition adjustment to retained earnings   –           (1 035 469)           (1 035 469)    
      Attributable profit   1 500 910           2 273 879           1 216 805    
      Dividends paid   –           (1 106 834)           (2 213 668)    
      Remeasurement of puttable non-controlling interest   8 904           –           131 537    
      Remeasurement of defined benefit obligations   –           –           3 864    
      Recognition of puttable non-controlling interest liabilities   –           (2 473 097)           (2 673 442)    
      Fair value adjustment for investments held at fair value through other comprehensive income   –           –           (54 139)    
      Reclassification of Nowaco equity-incentive scheme to cash-settled scheme   –           (279 772)           (322 020)    
      Transfer from foreign currency translation reserve   –           –           (6 503)    
      Transfer from equity-settled share-based payment reserve   (24 185)           (303 918)           (355 617)    
    27 506 468           25 918 507           27 672 556    
Equity attributable to non-controlling interests of the company                                
Balance at beginning of period   266 030           237 267           237 267    
Total comprehensive income   (16 137)           17 819           57 084    
   Attributable profit   16 566           22 861           15 297    
   Movement in foreign currency translation reserve   (32 703)           (5 042)           41 787    
 Dividends paid   (22 560)           (18 035)           (28 321)    
 Share of movement on reserves   174           334           –    
 Changes in shareholding   3 076           –           2 673 442    
 Transfer to puttable non-controlling interest liability   –           –           (2 673 442)    
    230 583           237 385           266 030    
Total equity   27 737 051           26 155 892           27 938 586