Wrap Text
AFR - Afgri Limited - Unaudited condensed consolidated financial results for
the six months ended 31 December 2011 and cash dividend declaration
AFGRI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1995/004030/06)
ISIN number: ZAE000040549
Share code: AFR
Unaudited condensed consolidated financial results for the six months ended
31 December 2011 and cash dividend declaration
- Revenue from all operations up 24%
- Substantial reduction in contribution from poultry business unit
- Retail and equipment profits up on the back of record tractor sales
- Continued expansion into the Foods sector
- Improvement in debt equity ratio from 2,9 to 1,8
- HEPS from all operations down 17% to 36,9 cents (2010: 44,6 cents)
- Strong grain management performance despite lower silo volumes
Commentary
The directors of AFGRI Limited ("AFGRI") are pleased to present the
unaudited condensed consolidated interim financial results of the AFGRI
Group of companies ("the Group") for the six months ended 31 December 2011.
Operating environment
The final 2011 summer crop in the AFGRI area, estimated at 2,9 million tons,
was 19% below the 2010 season`s crop. During the 2011 calendar year, the
grain storage industry saw high despatch rates, the result of higher maize
exports, leading to generally lower stock levels. The opening stock stored
in AFGRI silos at 1 July 2011 was 600 000 tons lower than 1 July 2010 as a
result of these factors. At 31 December 2011, stock stored in AFGRI silos of
915 000 tons is 37% down on the stock holding on 1 January 2011. The impact
of these reduced volumes in the silos had an estimated R48 million negative
effect on profit before tax, compared to the prior period.
Maize prices reached record levels at the end of 2011, increasing from
approximately R1 400/ton in March to over R2 600/ton during December 2011.
The increasing maize price encouraged farmer spending on mechanisation and
other farming requisites, leading to improved results from the Group`s
retail and equipment division, but placed pressure on margins in AFGRI`s
foods sector business units. In particular, higher raw material prices and
increased competiveness in the market negatively affected the animal feeds
division`s results. A 33% increase in feed prices, driven primarily by maize
prices, placed margins under pressure at the AFGRI poultry division which
only managed to pass some of this increase on to consumers with an 18%
increase in average selling prices.
Rand strength inhibited price increases of imported goods such as farming
implements and inputs, but encouraged poultry imports. Low interest rates
failed to stimulate growth in consumer spending due to concerns over rising
inflation and the continuing hangover of the 2008 financial crisis.
The financial services division posted an increase in fee income which
resulted in an improvement in profits.
Agricultural conditions in Western Australia improved and this business unit
posted an increase in mechanisation sales.
Operational review
AFGRI continues to focus its activities in three segments - AFGRI Agri
Services, AFGRI Financial Services, and AFGRI Foods. The acquisition of the
yellow maize milling business of Pride Milling was approved by the
Competition Commission and the results of this operation have been included
from 1 December 2011 under the renamed Oil, Milling and Protein division.
The acquisition of Rossgro Poultry was only effective from 1 March 2011 and
as such the comparative period figures do not include any results from this
operation. The results of the Group`s African and Australian activities are
reported under the retail and equipment division.
AFGRI`s John Deere dealership increased its market share for the period to
31%, from 27%. This was achieved through record sales of tractors across all
operations. AFGRI entered the mechanisation market in Zimbabwe by
establishing a John Deere dealership in which AFGRI owns 49%.
Sales in the Group`s retail stores strengthened and margins were maintained.
Greater competition by suppliers and the increasing availability of credit
resulted in a reduction in the division`s bulk direct sales to farmers.
On 1 December 2011, AFGRI successfully concluded the sale of its farmers
debtors book to the Land Bank. This resulted in R1,57 billion (R1,80 billion
by 31 December 2011) of farmers` debtors being sold to the Land Bank and a
concomitant reduction in the Group`s liabilities by a similar amount. The
cash collateral deposits associated with this liability had been
renegotiated and released in the previous financial year. The Rabo Bank debt
securitisation structure was also unwound on 1 December, resulting in the
release of R75 million of cash collateral deposits. A further R88 million of
cash collateral deposits were released through the renegotiation of the
Group`s Wesbank facility. Management hopes to finalise a similar transaction
for its corporate debtors book by 30 June 2012. These transactions resulted
in a much stronger balance sheet and provides AFGRI with a solid foundation
to grow its financial services offering to the agricultural sector.
Despite the current challenging trading environment for poultry, other
sectors in the Group remain strong and committed to growing their
representation in the industrial foods processing sector. 51% of the Group`s
year-to-date capital expenditure has been invested in the foods segment,
notably at Nedan and Animal Feeds. The planning and design of the new
preparation and extraction plants at Nedan, to be commissioned in April
2013, is progressing well.
The results of AFGRI Poultry for the six months ended 31 December 2011 are
disappointing. The main cause is market forces putting pressure on margins,
and operational inefficiencies which are currently receiving serious
attention. To this end, the management team at AFGRI Poultry has been
strengthened by the appointment of Mr Izaak Breitenbach, as Managing
Director, to ensure the success of both the continuing operations and
expansion projects. Mr Breitenbach has 25 years` experience in the poultry
industry, and is highly regarded and well placed to direct the operations of
AFGRI Poultry. The operations at Rossgro have been integrated into AFGRI
Poultry. The opportunity to reduce this processing plant`s relatively high
unit costs will be addressed to realise the full value of the operation. In
order to extract synergies throughout the entire poultry production chain,
from grandparent stock to processing plant capacity, further expansion is
being considered.
Following a preliminary investigation into the dumping of chicken products,
the International Trade Administration Commission found enough evidence of
dumping by Brazilian exporters to request the South African Revenue Service
to increase duties on imported Brazilian chicken products for an interim 26-
week period. AFGRI welcomes these provisional findings and is confident of a
similar finding once the investigation is finalised.
Another notable development during the period was the purchase of business
premises, including offices, showroom and workshop in Lusaka, and the
establishment of a bunker in the Mkushi area of Zambia. Both of these
exciting projects are reported under the retail and equipment division.
Financial review
Higher commodity prices, in particular maize, drove the Group`s revenue up
by 27% to R4,4 billion (2010: R3,5 billion) for the six months ended 31
December 2011. Increased raw material and feed cost could not be fully
recouped from customers resulting in lower gross margin percentages,
particularly in the animal protein division. However, margins were
maintained in the retail and equipment division.
The lower interest rates and the sale of the farmer debtors book with effect
from 1 December 2011 saw interest on trade receivables decline during the
period. The finance cost of R200 million (2010: R205 million) do not reflect
a commensurate reduction due to increased borrowings resulting from the
Group`s Rossgro acquisition and its capital expenditure of R111 million
(2010: R171 million). Included with finance cost is an amount of R39 million
(2010: R40 million), relating to the finance charge on the borrowings
associated with the Group`s B-BBEE ownership structure.
The Group controlled its selling and administration expenses well by
limiting it to an 8% increase.
Profit for the period from continuing operations of R134 million is 16%
lower than the comparative period`s R159 million. This decrease of R25
million is analysed in the Group`s business segment results below. The Group
has reported no results for discontinued operations for the current period
(2010: loss of R12 million). Profit for the period from all operations is 9%
lower than the prior year.
Given the challenging environment in the foods and grain management
segments, headline earnings per share from all operations for the period
reflect a decrease of 17% from 44,6 cents to 36,9 cents and earnings per
share from all operations of 39,7 cents, reflect a decrease of 11%.
The Group`s net asset value per share has increased by 10% during the six
months from 30 June 2011. Inventory levels have been well controlled and the
increase in inventory values is the result of higher commodity prices and
the consolidation of Pride Milling`s inventory.
Trade and other receivables have decreased by R1,5 billion from 30 June 2011
due to the sale of the farmer debtors book. Bank borrowings to finance trade
receivables reflects a similar reduction. This transaction has allowed AFGRI
to reduce its debt to equity ratio to 1,8 at period end compared to 2,9 at
30 June 2011.
The period leading up to December is traditionally a period when the Group
experiences negative cash flow due to the advancing of funding to farmers
and increasing inventories during the growing season. However, during 2011,
working capital increases were well managed given the higher commodity
prices. The purchase of the yellow maize milling operation of Pride Milling
was finalised at R220 million. This, together with selected items of capital
expenditure, were funded through general banking facilities.
Changes to the Board of Directors and Company Secretary
Ms Marion Shikwinya was appointed as AFGRI`s Company Secretary with effect
from 1 February 2012, replacing Ms Niki van Wyk.
On 13 February 2012, AFGRI announced the appointment of Mr Nick Wentzel as
an independent Non-executive Director to the Board of AFGRI.
Prospects
The recent 2012 summer crop estimates indicate a maize crop of 16% higher
than 2011, and receipts into the silos are not expected to begin until mid-
April. Low silo stock levels are therefore expected over the second half of
the financial year in the grain management division. Maize prices are
expected to remain high until harvesting of the 2012 crop, depending on the
final crop size and international prices. This could result in continued
margin pressure in the food businesses. Given the difficult trading
conditions and low maize stock, cost control will remain a focus area of the
Group`s operations during the second half of the financial year.
Sales of farming mechanisation are expected to remain strong throughout the
summer crop harvest.
With the sale of the farmer debtors book completed, AFGRI Financial Services
now has the platform and the requisite funding stream from which to expand
its offerings.
Animal protein, especially AFGRI Poultry, is expected to remain under
pressure for the second half of the financial year with the remainder of
AFGRI`s performance expected to be in line with the market prospects for the
various business units.
By order of the Board
JPR Mbau (Chairman) CP Venter (Chief Executive Officer)
28 February 2012
Group balance sheet (R`millions)
Note 31 December 31 December 30 June
Unaudited Unaudited Audited
2011 2010 2011
ASSETS
Non-current assets 2 718 2 196 2 464
Property, plant and 1 845 1 512 1 699
equipment
Goodwill 248 37 118
Other intangible assets 256 286 269
Investments in associates 48 36 41
Available-for-sale financial 41 42 41
assets
Financial receivables 164 161 164
Deferred income tax assets 116 122 132
Current assets 4 310 5 656 5 474
Inventories 1 227 934 1 024
Biological assets 47 64 53
Trade and other receivables 630 509 450
Trade receivables financed 5 1 895 3 290 3 425
by banks
Derivative financial 44 64 91
instruments
Current income tax assets 22 2 26
Cash and cash equivalents 445 793 405
and cash collateral deposits
'Cash collateral deposits 54 399 147
'Cash and cash equivalents 391 394 258
Assets of disposal groups 7 17 40
classified as held-for-sale
Total assets 7 035 7 869 7 978
EQUITY
Capital and reserves 1 734 1 592 1 571
attributable to equity
holders
Share capital - - -
Treasury shares (86) (90) (90)
Incentive trust shares (130) (151) (133)
Fair value and other (22) (63) (64)
reserves
Retained earnings 1 972 1 896 1 858
Non-controlling interest 5 6 4
Total equity 1 739 1 598 1 575
LIABILITIES
Non-current liabilities 770 1 016 748
Borrowings 572 832 560
Deferred income tax 183 184 188
liabilities
Provisions for other 15 - -
liabilities and charges
Current liabilities 4 526 5 255 5 648
Trade and other payables 1 393 1 164 1 221
Derivative financial 44 79 41
instruments
Current income tax 7 15 2
liabilities
Short-term borrowings - - 10
Call loans and bank 1 187 674 951
overdrafts
Bank borrowings to finance 5 1 895 3 323 3 423
trade receivables
Liabilities of disposal - - 7
groups classified as held-
for-sale
Total liabilities 5 296 6 271 6 403
Total equity and liabilities 7 035 7 869 7 978
Net asset value per share 486 446 441
attributable toequity
holders (cents)
Group statement of changes in equity (R`millions)
Share Fair Retained Treasury
capital value earnings shares
and other
reserves
Balance 30 June 2010 (audited) - 43 1 820 (90)
Profit for the period - - 146 -
Other comprehensive loss for the - (1) - -
period
Payment to non-controlling - - - -
interests
Dividends paid - - (57) -
Share-based payments - 2 - -
Sale of incentive shares - - - -
Consolidation of BEE SPVs - (120) - -
BEE partners share to NDR - 13 (13) -
Balance 31 December 2010 - (63) 1 896 (90)
(unaudited)
Profit for the period - - 44 -
Other comprehensive income for - 16 - -
the period
Payment to non-controlling - - - -
interests
Dividends paid - - (80) -
Share-based payments - 4 - -
Sale of incentive shares - - - -
Transaction with non-controlling - - (23) -
interests
BEE partners share to NDR - (21) 21 -
Balance 30 June 2011 (audited) - (64) 1 858 (90)
Profit for the period - - 133 -
Other comprehensive income - 31 - -
for the period
Payment to non-controlling - - - -
interests
Dividends paid - - (10) -
Share-based payments - 2 - -
Sale of incentive shares - - - -
Transfer of Group shares - - - 4
BEE partners share to NDR - 9 (9) -
Balance 31 December 2011 - (22) 1 972 (86)
(unaudited)
Group statement of changes in equity (R`millions) (continued)
Incentive Total BEE Other Total
trust share- partners non-
share holders controlling
equity interest
Balance 30 June 2010 (171) 1 602 670 13 2 285
(audited)
Profit for the period - 146 - 1 147
Other comprehensive - (1) - - (1)
loss for the period
Payment to non- - - - (8) (8)
controlling interests
Dividends paid - (57) - - (57)
Share-based payments - 2 - - 2
Sale of incentive 20 20 - - 20
shares
Consolidation of BEE - (120) (670) - (790)
SPVs
BEE partners share to - - - - -
NDR
Balance 31 December (151) 1 592 - 6 1 598
2010 (unaudited)
Profit for the period - 44 - - 44
Other comprehensive - 16 - - 16
income for the period
Payment to non- - - - (2) (2)
controlling interests
Dividends paid - (80) - - (80)
Share-based payments - 4 - - 4
Sale of incentive 18 18 - - 18
shares
Transaction with non- - (23) - - (23)
controlling interests
BEE partners share to - - - - -
NDR
Balance 30 June 2011 (133) 1 571 - 4 1 575
(audited)
Profit for the period - 133 - 1 134
Other comprehensive - 31 - - 31
income
for the period
Payment to non- - - - 0 0
controlling interests
Dividends paid - (10) - - (10)
Share-based payments - 2 - - 2
Sale of incentive 7 7 - - 7
shares
Transfer of Group (4) - - - -
shares
BEE partners share to - - - - -
NDR
Balance 31 December (130) 1 734 - 5 1 739
2011 (unaudited)
Group income statement (R`millions)
Note Six months Six months Year
ended ended ended
31 December 31 December 30 June
Unaudited Unaudited Audited
2011 2010 2011
Continuing operations
Sales of goods and rendering 4 445 3 507 6 998
of services
Interest on trade receivables 134 162 292
Total revenue 4 579 3 669 7 290
Cost of sales* (3 477) (2 578) (5 231)
Gross profit 1 102 1 091 2 059
Other operating income 8 16 27
Other operating expenses* (729) (673) (1 407)
Operating profit 381 434 679
Finance costs 2 (200) (205) (387)
Share of profit of associates 7 - 1
Profit before income tax 188 229 293
Income tax expenses (54) (70) (68)
Profit for the period from 134 159 225
continuing operations
Discontinued operations
Loss for the period from - (12) (34)
discontinued operations
Profit for the period 134 147 191
Profit for the period
attributable to:
Equityholders of the Company 133 146 190
Non-controlling interest 1 1 1
Profit for the period 134 147 191
Number of shares in issue (`m) 375,5 375,5 375,5
Weighted average number of 333,3 328,7 328,5
shares in issue (`m)
Diluted weighted average 356,7 356,5 356,5
number of shares in issue (`m)
Earnings per share from 39,7 47,0 65,5
continuing operations (cents)
Losses per share from - (2,6) (7,5)
discontinued operations
(cents)
Earnings per share from all 39,7 44,4 58,0
operations (cents)
Diluted earnings per share 37,1 43,4 60,3
from continuing operations
(cents)
Diluted losses per share from - (2,5) (6,9)
discontinued operations
(cents)
Diluted earnings per share 37,1 40,9 53,4
from all operations (cents)
* Prior year information has been reclassified. Refer to note 8.
Group statement of comprehensive income (R`millions)
Six months Six months Year
ended ended ended
31 December 31 December 30 June
Unaudited Unaudited Audited
2011 2010 2011
Profit for the period 134 147 191
Other comprehensive income
'Exchange differences on 35 (3) 8
translating foreign operations
'Cash flow hedges (4) 2 7
Other comprehensive 31 (1) 15
profit/(loss) for the period,
net of tax
Total comprehensive income for 165 146 206
the period
Total comprehensive income
attributable to:
Equityholders of the Company 164 145 205
Non-controlling interest 1 1 1
165 146 206
Group cash flow statement (R`millions)
Six months Six months Year
ended ended ended
31 December 31 December 30 June
Unaudited Unaudited Audited
2011 2010 2011
Operating activities
Cash generated by operations 259 279 381
before changes in working
capital and tax paid
Changes in working capital (340) (554) (360)
Tax paid (27) (12) (48)
Net cash utilised in operating (108) (287) (27)
activities
Net cash utilised in investing (282) (122) (467)
activities
Net cash generated 287 (139) (467)
from/(utilised in) financing
activities
Net decrease in cash and cash (103) (548) (961)
equivalents
Cash and cash equivalents at (693) 268 268
the beginning of the period
Cash and cash equivalents at (796) (280) (693)
the end of the period
Cash collateral deposits 54 399 147
Cash and cash equivalents and (742) 119 (546)
cash collateral deposits
Declaration of cash dividend
Notice is hereby given that the directors of AFGRI have declared an
interim cash dividend of 18,45 cents per share for the six months ended
31 December 2011. In accordance with settlement procedures of STRATE,
the following dates will apply to the interim dividend:
Last day to trade cum the dividend Thursday, 15 March 2012
Trading ex dividend commences Friday, 16 March 2012
Record date Friday, 23 March 2012
Dividend payment date Monday, 26 March 2012
There will be no dematerialisation or rematerialisation of AFGRI shares
between Friday, 16 March 2012 and Friday, 23 March 2012, both dates
inclusive.
By order of the Board
M Shikwinya
Group Company Secretary
Centurion
Notes to the condensed consolidated interim financial statements
'1. Basis of preparation and accounting policies
These condensed consolidated interim financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRS) IAS 34 under the historical cost convention, as
modified by the revaluation of available-for-sale financial assets
and financial liabilities (including derivative financial
instruments) and biological assets at fair value through profit or
loss, the Listings Requirements of the JSE Limited (JSE) and the
South African Companies Act (Act 71 of 2008) as amended, on a basis
consistent with that of the prior period.
'2. Finance costs Six months Six months
ended ended
31 December 31 December
(R`millions) 2011 2010
Interest paid on bank borrowings used to (110) (105)
finance trade receivables
Other interest paid to financial (91) (100)
institutions
Finance cost - continuing operations (201) (205)
Less: Borrowing costs capitalised on 1 -
qualifying assets
Finance cost - continuing operations (200) (205)
(income statement)
Finance cost - discontinued operations - (2)
Finance cost - total (200) (207)
'3. Reconciliation of headline earnings per
share
Earnings 39,7 44,4
(Profit)/loss on disposal of assets (2,8) 0,2
Headline earnings 36,9 44,6
Diluted headline earnings 34,5 41,2
'4. Business segment results
The pre-tax segment results are presented without taking into
account any headline earnings adjustments and before the allocation
of any minority share of profits. Operating profits after finance
costs are shown after a charge for internal interest based on each
operating unit`s net assets throughout the period. With the
exception of the acquisition of the yellow maize milling business
of Pride Milling (included under the renamed Oil, Milling and
Protein division), no other significant changes to the Group`s
structure and operations have occurred during the period. The Group
changed the way it allocates Head office expenses during the 2011
financial year. Only centralised costs are now distributed with
corporate head office cost remaining in the Corporate segment.
Comparatives have been restated to ensure comparability.
'5. Trade receivables financed by banks and related liability
The only security for the liability is the trade receivables
themselves, and in certain cases, additional cash collateral
deposits or cash trade receivables of between 10% and 15% of the
facility. The Group carries the risk of loss on these trade
receivables.
'6. Agency agreements
The Group manages Agri debtors on behalf of third party financial
institutions to the amount of R3 532 million (2010:R1 546 million).
Administration and management fees are paid by these third parties
to the Group for services rendered in accordance with the service
level agreements.
On 1 December 2011 GroCapital Financial Services (Pty) Limited (a
wholly owned subsidiary of AFGRI Operations Limited, "GroCapital")
sold its farmers lending debtors at book value to the Land and
Agricultural Development Bank of South Africa ("Landbank") for a
purchase consideration of R1,57 billion. Part of this transaction
is the origination of a Service Level Agreement under which
GroCapital will manage, administer and service the farmer lending
book on behalf of the Landbank. Under this agreement GroCapital is
only liable for bad debts on a second loss basis. In accordance
with IFRS, and as a result of the residual risk retained in the
book sold, R12,0 million of the farmer debtors were not
derecognised as part of the sale. A further R4,0 million guarantee
provision was raised to accommodate the potential second loss in
the book sold. Refer to the announcement on SENS on 5 December 2011
for further details regarding this transaction.
On all other service level agreements, the Group is liable for bad
debts to a maximum of between 5% and 10% of the value of debtors
administered.
The Group receives a fee for the handling, grading, storing and
administration of commodities on behalf of third parties. The value
of these commodities is R3 023 million (2010: R2 412 million) and
are fully insured by the Group.
7. Business combinations
On 1 December 2011 the Group acquired the yellow grits and by-
products milling business of Pride Milling Company (Pty) Limited,
conducted at Ermelo, Kinross and Bethal, as a going concern.
Purchase consideration amounted to R240 million, which includes
contingent consideration of R20 million which will be payable on 30
November 2013 should certain profit targets be met. The initial
accounting for this business combination in terms of IFRS 3 is
incomplete as the purchase price allocation exercise is still to be
finalised. The fair values of the assets and liabilities acquired
were preliminarily determined as follows: property, plant and
equipment of R98,5 million, inventory of R22,3 million, trade and
other receivables of R76,8 million and trade and other payables of
R83,2 million. Goodwill of R136,5 million arose as the difference
between the fair value of purchase consideration and the fair value
of the net assets acquired. The Group will revisit the assumptions
and finalise the impact of IFRS 3 in the forthcoming year. Revenue
of R29,7 million and a net profit of R0,3 million were included in
the current period results.
'8. Comparative figures
During the 2011 financial year certain costs, previously disclosed
under operating expenses, have been disclosed as part of cost of
sales. The prior year information has been reclassified to ensure
comparability and a total amount of R25,5 million has been
reclassified from other operating expenses to cost of sales for the
six months ending 31 December 2010.
Business segment results (R`millions)
Agri Services
Six months ended 31 December 2011 and six Retail and Grain
months ended 31 December 2010 equipment Management
Unaudited 2011 2010 2011 2010
Revenue 2 014 1 620 252 287
-'sale of goods and or services 2 007 1 609 252 287
-'interest 7 11 - -
Operating profit/(loss) (before the items 86 61 134 151
below)
-'other operating income - - - -
-'depreciation and amortisation (8) (7) (10) (9)
Operating profit/(loss) 78 54 124 142
Other items of profit and loss 7 - - -
-'share of profit/(loss) of associates 7 - - -
Profit/(loss) before finance costs 85 54 124 142
Finance costs (23) (19) (18) (10)
Profit/(loss) before income tax 62 35 106 132
Income tax
Profit after tax
Assets 1 612 1 737 882 898
Non-current assets 296 235 397 378
Other current assets 836 819 98 109
Trade and other receivables 387 495 371 358
Cash and cash equivalents 93 188 16 53
Liabilities 512 760 237 318
Non-current liabilities 6 103 2 1
Other current liabilities 493 579 235 317
Borrowings to finance trade receivables - - - -
Call loans and overdrafts 13 78 - -
Net assets 1 100 977 645 580
Capital expenditure 38 9 10 16
Business segment results (R`millions) (continued)
Financial Foods
Services
Six months ended 31 Animal Oil, milling
December 2011 and six protein and protein
months ended 31 December
2010
Unaudited 2011 2010 2011 2010 2011 2010
Revenue 201 214 1 780 1 390 379 264
-'sale of goods and or 74 63 1 780 1 390 379 264
services
-'interest 127 151 - - - -
Operating profit/(loss) 118 131 103 153 24 24
(before the items below)
-'other operating income 3 10 - - - -
-'depreciation and (12) (16) (36) (33) (4) (2)
amortisation
Operating profit/(loss) 109 125 67 120 20 22
Other items of profit and - - - - - -
loss
-'share of profit/(loss) - - - - - -
of associates
Profit/(loss) before 109 125 67 120 20 22
finance costs
Finance costs (74) (93) (34) (37) (9) (3)
Profit/(loss) before 35 32 33 83 11 19
income tax
Income tax
Profit after tax
Assets 2 023 3 402 1 938 1 551 720 191
Non-current assets 319 541 1 110 879 337 86
Other current assets 40 5 253 260 177 33
Trade and other 1 597 2 435 547 402 206 72
receivables
Cash and cash equivalents 67 421 28 10 - -
Liabilities 1 600 2 676 750 652 294 76
Non-current liabilities 20 19 97 277 22 8
Other current liabilities 222 77 653 372 272 68
Borrowings to finance 1 358 2 542 - - - -
trade receivables
Call loans and overdrafts - 38 - 3 - -
Net assets 423 726 1 188 899 426 115
Capital expenditure - 11 48 46 9 11
Business segment results (R`millions) (continued)
Other
Six months ended 31 Corporate BEE SPVs Inter-group
December 2011 and six eliminations
months ended 31 December
2010
Unaudited 2011 2010 2011 2010 2011 2010
Revenue - - - - (47) (106)
-'sale of goods and or - - - - (47) (106)
services
-'interest - - - - - -
Operating profit/(loss) (9) (30) - - - -
(before the items below)
-'other operating income 5 6 - - - -
-'depreciation and (13) (5) - - - -
amortisation
Operating profit/(loss) (17) (29) - - - -
Other items of profit - - - - - -
and loss
-'share of profit/(loss) - - - - - -
of associates
Profit/(loss) before (17) (29) - - - -
finance costs
Finance costs (3) (3) (39) (40) - -
Profit/(loss) before (20) (32) (39) (40) - -
income tax
Income tax
Profit after tax
Assets 653 526 (43) (256) (750) (180)
Non-current assets 302 333 (43) (256) - -
Other current assets 39 35 - - (96) (180)
Trade and other 71 37 - - (654) -
receivables
Cash and cash 241 121 - - - -
equivalents
Liabilities 1 856 1 470 558 550 (511) (231)
Non-current liabilities 65 63 558 545 - -
Other current 80 71 - 5 (511) (231)
liabilities
Borrowings to finance 537 781 - - - -
trade receivables
Call loans and 1 174 555 - - - -
overdrafts
Net assets (1 203) (944) (601) (806) (239) 51
Capital expenditure 6 78 - - - -
Business segment results (R`millions) (continued)
Totals
Six months ended 31 Continuing Discontinued All operations
December 2011 and six operations operations
months ended 31 December
2010
Unaudited 2011 2010 2011 2010 2011 2010
Revenue 4 579 3 669 - 36 4 579 3 705
-'sale of goods and or 4 445 3 507 - 36 4 445 3 543
services
-'interest 134 162 - - 134 162
Operating profit/(loss) 456 490 - (13) 456 477
(before the items below)
-'other operating income 8 16 - - 8 16
-'depreciation and (83) (72) - (2) (83) (74)
amortisation
Operating profit/(loss) 381 434 - (15) 381 419
Other items of profit 7 - - - 7 -
and loss
-'share of profit/(loss) 7 - - - 7 -
of associates
Profit/(loss) before 388 434 - (15) 388 419
finance costs
Finance costs (200) (205) - (2) (200) (207)
Profit/(loss) before 188 229 - (17) 188 212
income tax
Income tax (54) (70) - 5 (54) (65)
Profit after tax 134 159 - (12) 134 147
Assets 7 035 7 869 7 035 7 869
Non-current assets 2 718 2 196 2 718 2 196
Other current assets 1 347 1 081 1 347 1 081
Trade and other 2 525 3 799 2 525 3 799
receivables
Cash and cash 445 793 445 793
equivalents
Liabilities 5 296 6 271 5 296 6 271
Non-current liabilities 770 1 016 770 1 016
Other current 1 444 1 258 1 444 1 258
liabilities
Borrowings to finance 1 895 3 323 1 895 3 323
trade receivables
Call loans and 1 187 674 1 187 674
overdrafts
Net assets 1 739 1 598 1 739 1 598
Capital expenditure 111 171 111 171
Administration
Business address and registered office: AFGRI Building, 12 Byls Bridge
Boulevard, Highveld Ext 73, Centurion 0157, Tel (011) 063 2347, Fax (087)
942 5010
Company Secretary: Ms M Shikwinya, PO Box 11054, Centurion 0046
Bankers: ABSA Bank Limited, FirstRand Bank Limited, Hong Kong and Shanghai
Banking Corporation, Investec Bank Limited, Land and Agricultural
Development Bank of SA Limited, Nedcor Limited, Standard Bank of SA Limited,
Standard Chartered Bank
Auditors: PricewaterhouseCoopers Inc, 32 Ida Street, Menlyn Park 0102 PO Box
35296, Menlo Park 0102, Tel (012) 429 0000
Transfer secretaries: Computershare Investor Services (Proprietary) Limited,
70 Marshall Street, Johannesburg 2001, PO Box 61051, Marshalltown 2107, Tel
(011) 370 5000
Sponsor: Investec Bank Limited, 100 Grayston Drive, Sandton 2196, PO Box
785700, Sandton 2146, Tel (011) 286 7000
Directorate
Non-executive: JPR Mbau (Chairman), DD Barber, L de Beer, LM Koyana,
BA Mabuza, NL Shirilele, CT Vorster, NC Wentzel Executive: CP Venter (Chief
Executive Officer), JA van der Schyff (Financial Director)
This announcement is available on SENS and AFGRI`s website at:
www.afgri.co.za
Date: 29/02/2012 07:05:04 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
