Clear plan: delivers stronger operations

We are a stronger business than we were 12 months ago. We are better positioned to strengthen and grow our core South African business, and actively explore new strategic opportunities in the rest of Africa.

Despite the more challenging trading environment, the Group grew at every level, serving more customers than last year, in more stores and with higher value baskets.

The Group opened 111 new stores during the year and closed 26 under-performing stores, adding 3.4% net new space. We grew our Pick n Pay and Boxer brands across a variety of retail formats, ranging from stores which serve lower-income communities through to our new Waterfront store in Cape Town.

	364 days 2014	Normalised trading calendar 364 days (pro forma)* 2013	Comparable pro forma % change*	As previously reported 368 days 2013	% change
Total till sales	R73.0 billion	R67.8 billion	7.6	R68.5 billion	6.5
Turnover	R63.1 billion	R58.6 billion	7.7	R59.3 billion	6.5
Gross profit margin	17.5%	17.5%		17.4%
Trading profit	R1 010.3 million	R751.7 million	34.4	R852.4 million	18.5
Profit before tax	R833.1 million	R708.2 million	17.6	R808.9 million	3.0
Basic earnings per share	122.01 cents	100.50 cents	21.4	115.14 cents	6.0
Headline earnings per share**	138.51 cents	96.66 cents	43.3	111.30 cents	24.4
Total annual dividend per share	92.30 cents			84.00 cents	9.9

The Group implemented a 52-week financial reporting calendar in February 2013. The 2014 financial year consists of 364 trading days of turnover and related gross profit, compared with 368 days in the prior year. Reviewing turnover and gross profit on a comparable 364-day basis is more meaningful and as such, the results in this commentary are presented on a comparable pro forma basis (unless otherwise stated). For a detailed explanation on the new financial calendar and its impact on the comparability of performance, please refer to note 2 of the summarised financial information presented here.

The difference in the growth in headline earnings per share against basic earnings per share is the exclusion of profits and losses of a capital nature in the calculation of headline earnings. Capital losses net of tax of R78.9 million are added back to headline earnings in 2014 (mainly comprising the impairment of intangible assets), against a deduction net of tax of R18.4 million of capital profits in 2013. Please refer to note 6 of the summarised financial information presented here.

Clear plan: delivers stronger operations

Key financial indicators