Pick n Pay Group of Companies financial statements

Notes to the Group financial statements
for the period ended

29.	CHANGE IN FINANCIAL PERIOD CUT OFF date
	The Group implemented a 52-week financial reporting calendar in February 2013. The 52-week financial reporting calendar reflects that revenue and gross profit is managed on a daily basis and is aggregated into 52 trading weeks of 364 days. All other items included in profit before tax (other than those included in gross profit) are managed on a calendar month basis and are not pro-rated to days or weeks.
	The profit for the year consists of 52 weeks of gross profit and 12 calendar months of other income and trading expenses. As a result of this change, the 2014 annual financial period began on 4 March 2013 and ended on 2 March 2014 (364 trading days). This compares to the 2013 annual financial period which ran from 1 March 2012 to 3 March 2013 (368 trading days). The 2013 financial period therefore included four extra days of turnover and related gross profit. Other income and expenditure between the two years are comparable, with both the 2014 and 2013 financial years reporting a full 12 calendar months of other income and trading expenses.
	The details and impact of the additional four days included in the comparative period is set out below. The normalised 2013 result presented below excludes four days of turnover and gross profit relating to items sold during 1 to 4 March 2012. The accounting policies applied in calculating the impact of the additional trading days are consistent with those applied in the Group’s consolidated financial statements. The tax rate applied is the effective tax rate relating to the relevant entities within the Group. The information below has been prepared for illustrative purposes only and is the responsibility of the directors and because of its nature, may not fairly present the financial position, changes in equity, results of operations or cash flows.
		Pick n Pay Stores Group
		Prior year   as published   368 days to   3 March   2013   Rm	Effect of   new trading   calender   Rm	Normalised   trading   calender   364 days to   3 March   2013   (pro forma)  Rm
	Statement of comprehensive income
	Revenue (refer to note 2)	59 833.0	(663.8)	59 169.2
	Turnover	59 271.3	(663.8)	58 607.5
	Cost of sales	(48 935.9)	563.1	(48 372.8)
	Gross profit (refer to note 2)	10 335.4	(100.7)	10 234.7
	Other trading income (refer to note 2)	518.9	—	518.9
	Trading expenses	(10 001.9)	—	(10 001.9)
	Trading profit	852.4	(100.7)	751.7
	Profit on sale of property, plant and equipment	21.6	—	21.6
	Interest received	42.8	—	42.8
	Interest paid	(131.3)	—	(131.3)
	Share of associate’s income	23.4	—	23.4
	Profit before tax	808.9	(100.7)	708.2
	Tax	(258.3)	30.7	(227.6)
	Profit for the period	550.6	(70.0)	480.6
	Statement of financial position
	In the 52-week trading calendar the reporting period will always end on a Sunday. The current and comparative period ended on similar days (2 March 2014 versus 3 March 2013) and therefore had no material impact on the statement of financial position.

		Pick n Pay Holdings Group
		Prior year   as published   368 days to   3 March   2013   Rm	Effect of   new trading   calender   Rm	Normalised   trading   calender   364 days to   3 March   2013   (pro forma)  Rm
	Statement of comprehensive income
	Revenue (refer to note 2)	59 833.0	(663.8)	59 169.2
	Turnover	59 271.3	(663.8)	58 607.5
	Cost of sales	(48 935.9)	563.1	(48 372.8)
	Gross profit (refer to note 2)	10 335.4	(100.7)	10 234.7
	Other trading income (refer to note 2)	518.9	—	518.9
	Trading expenses	(10 003.8)	—	(10 003.8)
	Trading profit	850.5	(100.7)	749.8
	Profit on sale of property, plant and equipment	21.6	—	21.6
	Interest received	42.8	—	42.8
	Interest paid	(131.3)	—	(131.3)
	Share of associate’s income	23.4	—	23.4
	Profit before tax	807.0	(100.7)	706.3
	Tax	(258.3)	30.7	(227.6)
	Profit for the period	548.7	(70.0)	478.7
	Statement of financial position
	In the 52-week trading calendar the reporting period will always end on a Sunday. The current and comparative period ended on similar days (2 March 2014 versus 3 March 2013) and therefore had no material impact on the statement of financial position.