Pick n Pay Group of Companies financial statements

notes to the group financial statements

26.

OPERATING SEGMENTS

Operating segments are identified based on financial information regularly reviewed by the Chief Operating Decision Maker (CODM) of the Group, being the Group Executive as detailed here, for performance assessments and resource allocations. The Group annually performs a detailed review of the executives, or group of executives, that could be considered the appropriate and relevant CODM of the Group.

 

The Group has two operating segments, as described below, with no individual customer accounting for more than 10% of turnover.

 

South Africa – operates in various formats under the Pick n Pay and Boxer brands in South Africa. For a detailed list of formats refer here.

 

Rest of Africa – responsible for the Group’s expansion into the rest of Africa under the Pick n Pay and Boxer brands.

Performance is measured based on the segment profit before tax, as management believes that such information is most relevant in evaluating the results of the segments against each other and other entities that operate within the retail industry.

Pick n Pay Stores Group

South Africa

Rm

Rest of Africa

Rm

Total operations

Rm

2015

Total segment revenue

64 574.2

3 681.9

68 256.1

External revenue

64 574.2

3 028.9

67 603.1

Direct deliveries*

—

653.0

653.0

Segment external turnover

63 911.9

3 028.9

66 940.8

Profit before tax**

1 016.2

189.0

1 205.2

Other information

Statement of comprehensive income

Finance income

54.3

5.1

59.4

Finance costs

119.0

—

119.0

Depreciation and amortisation

845.2

24.3

869.5

Share of associate’s income

—

14.3

14.3

Statement of financial position

Total assets

13 636.7

1 069.8

14 706.5

Total liabilities

11 304.9

271.5

11 576.4

Additions to non-current assets

1 061.8

43.5

1 105.3

2014

Total segment revenue

60 925.9

3 241.5

64 167.4

External revenue

60 925.9

2 736.0

63 661.9

Direct deliveries*

—

505.5

505.5

Segment external turnover

60 381.0

2 736.0

63 117.0

Profit before tax**

692.7

140.4

833.1

Other information

Statement of comprehensive income

Finance income

40.1

4.2

44.3

Finance costs

143.5

0.4

143.9

Depreciation and amortisation

923.1

25.3

948.4

Impairment loss on intangible assets

104.1

—

104.1

Share of associate’s income

—

32.0

32.0

Statement of financial position

Total assets

12 995.6

1 109.0

14 104.6

Total liabilities

11 064.1

337.9

11 402.0

Additions to non-current assets

1 233.8

26.2

1 260.0

*

Direct deliveries are issues to franchisees directly by Group suppliers; these are not included in revenue on the statement of comprehensive income.
**

Segmental profit before tax is the reported measure used for evaluating the Group’s operating segments’ performance. On an overall basis the segmental profit before tax is equal to the Group’s reported profit before tax. The Rest of Africa segment’s segmental profit before tax comprises the segment’s trading result and directly attributable costs only. No allocations are made for indirect or incremental cost incurred by the South Africa segment relating to the Rest of Africa segment.

Pick n Pay Holdings Group

South Africa

Rm

Rest of Africa

Rm

Total operations

Rm

2015

Total segment revenue

64 574.2

3 681.9

68 256.1

External revenue

64 574.2

3 028.9

67 603.1

Direct deliveries*

—

653.0

653.0

Segment external turnover

63 911.9

3 028.9

66 940.8

Profit before tax**

1 014.7

189.0

1 203.7

Other information

Statement of comprehensive income

Finance income

54.3

5.1

59.4

Finance costs

119.0

—

119.0

Depreciation and amortisation

845.2

24.3

869.5

Share of associate’s income

—

14.3

14.3

Statement of financial position

Total assets

13 637.5

1 069.8

14 707.3

Total liabilities

11 308.7

271.5

11 580.2

Additions to non-current assets

1 061.8

43.5

1 105.3

2014

Total segment revenue

60 925.9

3 241.5

64 167.4

External revenue

60 925.9

2 736.0

63 661.9

Direct deliveries*

—

505.5

505.5

Segment external turnover

60 381.0

2 736.0

63 117.0

Profit before tax**

690.5

140.4

830.9

Other information

Statement of comprehensive income

Finance income

40.1

4.2

44.3

Finance costs

143.5

0.4

143.9

Depreciation and amortisation

923.1

25.3

948.4

Impairment loss on intangible assets

104.1

—

104.1

Share of associate’s income

—

32.0

32.0

Statement of financial position

Total assets

12 995.6

1 109.0

14 104.6

Total liabilities

11 070.3

337.9

11 408.2

Additions to non-current assets

1 233.8

26.2

1 260.0

*

Direct deliveries are issues to franchisees directly by Group suppliers; these are not included in revenue on the statement of comprehensive income.
**

Segmental profit before tax is the reported measure used for evaluating the Group’s operating segments’ performance. On an overall basis the segmental profit before tax is equal to the Group’s reported profit before tax. The Rest of Africa segment’s segmental profit before tax comprises the segment’s trading result and directly attributable costs only. No allocations are made for indirect or incremental cost incurred by the South Africa segment relating to the Rest of Africa segment.