Performance highlights

 

We are encouraged by the Group’s improved performance over the six months to February 2012, after a tough interim result, with the first clear indications that our investments in our transformation are starting to yield real benefits.

We have refocused our strategy and its implementation plan and have made some significant steps forward in transforming the business.

strategic objectives achieved

There have been a number of significant achievements over the 2012 financial year, which position us well going forward:

performance indicators and size of group

     

Turnover

R55.3

billion 

Trading profit

R1 267.5

million 

Headline earnings

R767.8

million 

     

Cash from operating
activities

R1 558.8

million 

Total dividend 
per share

130.85

cents 

Net asset value 
per share

9%

increase 

   
941

stores 

1.2 million m2

trading area 

   

FINANCIAL HIGHLIGHTS

The encouraging growth in turnover has been driven by steady volume increases, notwithstanding the effects of inflation. We have also seen improvement in gross margin due to the benefits of specialised category buying.

Significant strategic transformation investment costs have had an impact on profit growth for the year, most notably the upfront launch costs of Smartshopper, the implementation of specialist category buying and the continued investment in our central distribution capability, all of which will improve future operating efficiencies and enable us to serve our customers better.

The marked improvement in our second half year financial performance is very encouraging and is a clear indication that our transformation strategy is starting to have a positive impact on the financial performance of the Group.

 

6 months to  
August 2011  

6 months to  
February 2012  

12 months to  
February 2012  

 

Turnover 

7.6% 

8.6% 

8.1% 

 
 

New trading space at end of period (m2)

2.2% 

2.1% 

4.3% 

 
 

Customer transactions 

0.5% 

3.4% 

1.9% 

 
 

Units per transaction 

4.1% 

1.2% 

2.6% 

 
 

Inflation (unit selling price)

2.9% 

4.5% 

3.7% 

 
 

Volume (units sold)

4.7% 

4.6% 

4.6% 

 
 

Like-for-like till sales 

4.5% 

7.1% 

6.2% 

 
 

Gross margin (% of sales)

0.1% 

0.7% 

0.2% 

 
 

Trading profit 

31.7% 

11.2% 

10.6% 

 
 

EBITDA 

17.8% 

9.6% 

4.0% 

 

Headline earnings per share  

39.3% 

6.7% 

15.1% 

 

environmental and social sustainability – performance highlights