Our six capitals
Our ability to create long-term sustainable value for stakeholders
depends on the use of various capitals within our business. The
International Integrated Reporting
Financial
Human
Manufactured
Social and relationship
Intellectual
Natural
Our key stakeholders
The Group is committed to open and constructive engagement with all our stakeholders. Our business model and strategy are designed to consider and address the issues and concerns most relevant to our key stakeholders. Refer to the "Engaging with our stakeholders" section on pages 38 to 41 for more information.
Customers
Community
Employees
Suppliers
Franchisees
Shareholders
Our business acceleration pillars
The second stage of our strategic long-term plan is organised around seven business acceleration pillars. These pillars represent the material growth opportunities that can materially affect our ability to create value over the short, medium and long term. Refer to our "Strategic focus" section on pages 44 to 51 for more information.
Better for customers
A flexible and winning estate
Efficient and effective operations
Every product, every day
A winning team
Boxer–
a national brand
Rest of Africa – a second engine of growth
| 2018 | 2017 | 2016 | 2015 | 2014 | |||
| PERFORMANCE MEASURES | |||||||
Turnover growth |
% | 5.3 | 7.0 | 8.2 | 6.1 | 6.5 | |
Gross profit margin |
% | 18.7 | 18.7 | 18.6 | 18.6 | 18.4 | |
Other trading income margin |
% | 2.2 | 2.0 | 1.9 | 1.7 | 1.5 | |
Trading expenses margin |
% | 18.6 | 18.4 | 18.5 | 18.5 | 18.3 | |
Trading profit growth |
% | 4.9 | 19.1 | 20.1 | 18.1 | 20.6 | |
Trading profit margin |
% | 2.2 | 2.2 | 2.0 | 1.8 | 1.6 | |
Profit before tax growth |
% | 5.4 | 18.5 | 20.0 | 38.6 | 5.2 | |
PBTAE growth |
% | 3.8 | 19.1 | 23.8 | 21.7 | 22.0 | |
PBTAE margin |
% | 2.2 | 2.2 | 2.0 | 1.7 | 1.5 | |
EBIT growth |
% | 8.2 | (7.6) | 54.6 | 30.3 | 5.9 | |
EBITDA (before capital items) growth |
% | 8.1 | 14.4 | 16.5 | 4.5 | 13.4 | |
Profit for the period margin |
% | 1.6 | 1.6 | 1.4 | 1.3 | 0.9 | |
HEPS |
cents | 277.0 | 258.7 | 215.2 | 173.3 | 141.2 | |
HEPS growth |
% | 7.1 | 20.2 | 24.2 | 22.8 | 26.8 | |
ROCE |
% | 32.6 | 32.3 | 29.6 | 24.5 | 20.6 | |
Net asset value per share |
cents | 966.2 | 922.0 | 869.4 | 741.8 | 651.7 | |
WACC |
% | 12.0 | 13.1 | 12.2 | 10.6 | 10.7 | |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||
Turnover |
Rm | 81 560.1 | 77 486.1 | 72 445.1 | 66 940.8 | 63 117.0 | |
Other trading income |
Rm | 1 760.6 | 1 522.4 | 1 379.5 | 1 159.9 | 965.5 | |
Trading expenses |
Rm | 15 191.0 | 14 243.4 | 13 376.6 | 12 396.6 | 11 550.5 | |
Trading profit |
Rm | 1 819.9 | 1 735.6 | 1 457.7 | 1 214.1 | 1 028.1 | |
PBTAE |
Rm | 1 789.1 | 1 723.3 | 1 447.5 | 1 168.8 | 960.5 | |
Profit before tax |
Rm | 1 768.1 | 1 677.0 | 1 414.9 | 1 179.2 | 850.9 | |
Profit for the period |
Rm | 1 296.3 | 1 216.0 | 1 023.2 | 843.0 | 596.5 | |
EBIT |
Rm | 1 915.2 | 1 769.5 | 1 915.2 | 1 238.8 | 950.5 | |
EBITDA (before capital items) |
Rm | 3 023.8 | 2 797.3 | 2 444.5 | 2 097.9 | 2 008.5 | |
Headline earnings |
Rm | 1 312.1 | 1 247.3 | 1 030.7 | 829.1 | 675.4 | |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
Assets |
Rm | 18 980.5 | 17 791.8 | 16 312.5 | 14 610.3 | 13 941.7 | |
Ordinary shareholders' equity |
Rm | 4 023.6 | 3 855.7 | 3 701.7 | 3 107.9 | 2 688.4 | |
Liabilities |
Rm | 14 956.9 | 13 936.1 | 12 610.8 | 11 502.4 | 11 253.3 | |
| STOCK EXCHANGE (JSE LIMITED) PERFORMANCE | |||||||
Number of shares in issue |
millions | 488.5 | 488.5 | 488.5 | 487.3 | 480.4 | |
Weighted average number of shares in issue |
millions | 473.7 | 482.2 | 478.9 | 478.3 | 478.4 | |
Market capitalisation |
Rbn | 36.3 | 34.0 | 27.4 | 25.7 | 21.7 | |
Market capitalisation net of treasury shares |
Rbn | 35.3 | 32.9 | 26.9 | 25.3 | 21.6 | |
Price earnings ratio |
times | 26.8 | 26.9 | 26.1 | 30.5 | 32.0 | |
Annual dividend per share |
cents | 188.8 | 176.3 | 149.4 | 118.1 | 92.3 | |
Dividend cover |
times | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | |
Dividend yield |
% | 2.5 | 2.5 | 2.7 | 2.2 | 2.0 | |
Volume of shares traded |
millions | 360.1 | 345.7 | 281.6 | 213.3 | 165.2 | |
Percentage of shares traded |
% | 73.7 | 70.8 | 57.6 | 43.8 | 34.4 | |
| Market price per share (PIK) | |||||||
– close at period-end |
cents | 7 428 | 6 969 | 5 614 | 5 282 | 4 514 | |
– high for the period |
cents | 7 606 | 8 424 | 7 000 | 6 082 | 5 440 | |
– low for the period |
cents | 5 460 | 5 525 | 4 850 | 4 401 | 3 519 | |
| HUMAN MEASURES* | |||||||
| Developed a skilled workforce | |||||||
Number of employees |
000 | 51.9 | 54.4 | 52.9 | 48.7 | 49.3 | |
Permanent employee turnover |
% | 24.9 | 19.9 | 16.1 | 19.3 | 15.0 | |
| Employment equity** | |||||||
Top management |
% | 40.9 | 35.0 | 36.0 | 35.7 | 39.0 | |
Senior management |
% | 71.3 | 63.0 | 66.0 | 64.4 | 61.0 | |
Professionally qualified middle management |
% | 92.8 | 87.0 | 88.0 | 87.1 | 85.0 | |
Skilled technical and junior management |
% | 97.8 | 97.0 | 96.0 | 95.2 | 95.0 | |
Semi-skilled and discretionary decision-making |
% | 99.8 | 99.8 | 99.7 | 99.7 | 99.8 | |
Unskilled and defined decision-making |
% | 99.7 | 99.6 | 99.5 | 99.4 | 99.6 | |
| SOCIAL AND ENVIRONMENTAL MEASURES* | |||||||
Carbon footprint |
CO2e tonnes | 657 387.2 | 671 052.6 | 656 765.1 | 613 934.7 | 588 509.2 | |
Energy usage per square metre reduction (2008 baseline) |
GWh | 37.0 | 34.1 | 31.4 | 32.0 | 30.0 | |
CO2e emissions per square metre reduction (2013 baseline) |
% | 2.5 | 3.5 | 0.6 | 2.4 | 4.0 | |
Waste diverted from landfill |
% | 54.3 | 48.4 | 46.0 | 45.0 | 43.0 | |
Water consumed |
megalitres | 1 161 | 1 332 | 1 249 | 1 316 | 1 133 | |
Total CSI spend |
Rm | 30.5 | 38.7 | 41.5 | 44.6 | 36.0 | |
Schools in Pick n Pay School Club |
3 300 | 3 025 | 3 025 | 3 025 | 2 750 | ||
BBBEE level |
Level 8 | Level 8 | Level 4 | Level 4 | Level 6 | ||
| OPERATIONAL STATISTICS | |||||||
| Number of stores | |||||||
Group |
1 628 | 1 504 | 1 353 | 1 189 | 1 076 | ||
Pick n Pay – company owned |
722 | 661 | 596 | 510 | 464 | ||
Pick n Pay – franchise |
660 | 614 | 549 | 490 | 433 | ||
Boxer – company owned |
246 | 229 | 208 | 189 | 179 | ||
| Associate | |||||||
TM Supermarkets |
57 | 56 | 57 | 53 | 52 | ||
Total with associate |
1 685 | 1 560 | 1 410 | 1 242 | 1 128 | ||
Total square metres |
m2 – millions | 2.5 | 2.4 | 2.3 | 2.2 | 2.1 | |
Company owned |
m2 – millions | 1.8 | 1.7 | 1.6 | 1.5 | 1.5 | |
Franchise |
m2 – millions | 0.7 | 0.7 | 0.7 | 0.7 | 0.6 |
| * | Information relates to Pick n Pay-owned stores only. |
| ** | These measures represent the participation of employment equity candidates, as governed by the Employment Equity Act, No 55 of 1998, in the presented categories. |
Prior period amounts normalised for non-recurring items and/or restated to ensure comparability.
DEFINITIONSProfit before tax and exceptional items (PBTAE) |
Profit for the period, before tax and exceptional items. Exceptional items are determined by the remuneration committee. These are non-recurring items of an exceptional size and nature. |
|
EBIT |
Profit for the period, before net interest, tax and capital items. |
|
EBITDA |
Profit for the period, before net interest, tax, depreciation, amortisation and capital items. |
|
Headline earnings |
Net profit for the period adjusted for the after-tax effect of capital items. |
|
Headline earnings per share (HEPS) |
Headline earnings divided by the weighted average number of shares in issue for the period. |
|
Return on capital employed (ROCE) |
Headline earnings divided by average shareholders’ equity plus non-current borrowings. |
|
Net asset value per share |
Total value of net assets at period-end, adjusted for directors’ valuations of property, divided by the number of shares in issue at period-end, held outside the Group. |
|
Weighted average cost of capital (WACC) |
WACC is the calculation of our after-tax cost of capital in which each category of capital is proportionally weighted. All sources of capital, including non-current borrowings, bank overdraft and short-term borrowings, are included in the calculation. |
|
Market capitalisation |
The price per share at period-end multiplied by the number of shares in issue at period-end. |
|
Price earnings ratio |
The price per share at period-end divided by headline earnings per share. |
|
Annual dividend per share |
The interim dividend declared during the current financial period and the final dividend declared after period-end, in respect of the current financial year . |
|
Dividend cover |
Headline earnings per share divided by the dividends per share that relate to those earnings. |
|
Dividend yield |
Annual dividend per share expressed as a percentage of closing share price. |
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