Wrap Text
Ineterim report for the six months ended 30 September 2013
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1906/000622/06)
Share Code: ILV
ISIN: ZAE000083846
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013
Highlights
- Sugar production up 9.4%
- Operating profit up 9%
- Headline earnings per share increase by 14%
- Strong cash generation and balance sheet
- Downstream earnings diversification progressing well
Quote:
Gavin Dalgleish, Managing Director, commented:
"The favourable operating conditions experienced during the period
resulted in a positive increase of 9.4% in sugar production and
11% in sales volumes. We are encouraged by our achievements in
executing recent capital investments at the central sugar
distribution centre in South Africa, the new potable alcohol
distillery in Tanzania and the cogeneration plant in Swaziland,
which are all operating successfully and offer a template to be
replicated across the group consistent with our core sugar and
downstream product strategy. Although we continue to prioritise
cost control and efficiencies, we expect that challenging market
conditions will continue to put pressure on our operating
margins."
Enquiries:
Illovo Sugar Limited 031 508 4300
Gavin Dalgleish, Managing Director
Mohammed Abool-Samad, Financial Director
Chris Fitz-Gerald, Group Communications Manager
College Hill 011 447 3030
Cara White 072 248 8242
Review
Operating profit for the six months ended 30 September 2013
reflected an improvement of 9.4% compared to the corresponding
period last year. This result was driven primarily by increased
sugar production, which was 9.4% higher than the half year period
to 30 September 2012. Revenue is 23.0% higher than the corresponding
period last year due to an 11.6% increase in sugar sales volumes, as
well as the impact of the weaker Rand on South African downstream
sales and EU export realisations in Swaziland. However, domestic
sales volumes were marginally lower than the previous year and
with increased export volumes at lower prices, margins were under
pressure. Cost control measures were a feature of the operating
environment but overall, margins have declined compared to last
year. Net financing costs were similar to last year at R152.9
million whilst the effective tax rate declined from 28.2% to
25.5%. Profit after tax rose to R1 115.7 million from R962.8
million, resulting in an improvement of 14.0% in headline earnings.
The contributions to operating profit were sugar production 52%,
cane growing 44%, downstream and co-generation 4%. By country,
contributions were Malawi 33%, Zambia 30%, South Africa 10%,
Swaziland 17%, Mozambique 9% and Tanzania 1%.
In general, operating conditions have been favourable during the
first 6 months of the year and a total of 11.7 million tons cane
was crushed, reflecting a 7.5% increase compared to the same
period last year. On average, sucrose levels have been slightly
better. Cane supply and cane quality have been good and the group's
sugar factories have performed reasonably well. The four South
African factories have operated at high levels of efficiency,
while the expanded factories in Zambia, Swaziland and Mozambique
have achieved throughput levels in line with their expanded design
capacities. A total of 1.4 million tons of sugar has been
produced in the half year, 9.4% more than the same period last
year.
Total cane harvested on the group's own estates during this period
amounted to 4.7 million tons compared to last year's 4.9 million
tons. Group cane production for the full season is anticipated to
be around 250 000 tons less than last year due to lower yields in
Malawi, Zambia, Swaziland and Mozambique.
The production of downstream products in South Africa has
progressed well and expectations are for furfural and alcohol
volumes to exceed last year's levels for the full season. The new
potable alcohol distillery in Tanzania was commissioned in August
2013, operating at design capacity and producing high-quality
product from start-up. The cogeneration of electricity at the
Ubombo mill in Swaziland continued to perform well, with
increasing exports of surplus power into the national grid.
The commercial environment is difficult with sugar imports
impacting negatively on domestic sales and prices in South Africa
and Tanzania. The South African sugar industry has made an
application to International Trade Administration Commission of
South Africa (ITAC) for an increase in the import tariff which it
is hoped will reduce the level of duty-free imports in due course.
In addition, the continued world sugar surplus has put pressure on
the group's export markets. The world sugar price is currently
trading at around US18 cents/lb and although it has rallied
recently it still remains below the cost of production for most
sugar producers.
Domestic markets are the bedrock of the group's sugar sales but
are expected to be slightly lower compared to last year due to
increased levels of imported sugar in South Africa and Tanzania.
However, sales for the group in total are forecast to be higher
than last year, supplemented by increased sugar production which
has been sold into the world and regional markets. Exports to all
traditional markets are on schedule and pricing has in general
been in line with expectations, although at lower levels than the
previous year.
The new sugar warehouse and distribution centre in South Africa is
operating successfully and has been of major benefit in balancing
supply and demand in a challenging environment.
Alcohol pricing and sales have been in line with expectations,
while those of furfural and furfuryl alcohol have increased from
their low base in March 2013, but not in line with previous
historical price cycle rates.
Currency exchange rates in general have been of benefit to export
proceeds.
Outlook
Group sugar production for the full year is anticipated to
increase by around 5% with the increased output expected to come
mainly from South Africa, and to a lesser extent Swaziland, while
the other operations are forecast to remain at similar levels to
last year.
Sugar market conditions across the group are expected to remain
difficult with imports into South Africa and Tanzania impacting
negatively on domestic market sales and prices in those countries.
While regional prices have held up well over the period, sugar
sales and prices into the region are starting to be affected by
the world sugar surplus. Prices in the EU, at the commencement of
the new season, are declining and will impact on the group's
remaining sugar sales into that market in the current year.
Currency weaknesses are expected to assist export earnings for the
full year. Good growth in downstream earnings is anticipated.
Cost control remains a priority but the group's operating margin
is anticipated to be lower than last year due to the present
market conditions. Net financing costs are forecast to be similar
to last year while the effective tax rate should be slightly
lower. Cash generation remains strong and gearing is anticipated
to remain low.
Capital distribution out of share premium in lieu of dividend
Notice is hereby given that an interim capital distribution by way
of a reduction of Contributed Tax Capital of 37.0 cents per share
has been declared, in lieu of a dividend, on the ordinary shares
of the company in respect of the six months ended 30 September
2013, to Illovo shareholders recorded in the register on Friday 10
January 2014 ("the Distribution"). The directors have determined
that the capital distribution shall be paid out of qualifying
contributed tax capital as contemplated in the definition of
"contributed tax capital" in section 1 of the Income Tax Act,
1962.
In accordance with the settlement procedures of STRATE, the
Company has determined the following salient dates for the payment
of the Distribution:
Last day to trade cum the capital
distribution Friday, 3 January 2014
Shares commence trading ex
the capital distribution Monday, 6 January 2014
Record date Friday, 10 January 2014
Payment of capital distribution Monday, 13 January 2014
Share certificates may not be dematerialised/rematerialised
between 6 January 2014 and 10 January 2014, both days inclusive.
Relative to this Distribution, the directors have confirmed that
the Company will satisfy the solvency and liquidity test
immediately after completing the Distribution.
For income tax purposes, shareholders are advised that the
Distribution will be paid out of qualifying contributed tax
capital as contemplated in the definition of "contributed tax
capital" in section 1 of the Income Tax Act, 1962, and as it will
be regarded as a return of capital, consideration should be given
to the potential capital gains tax consequences. Illovo
shareholders are, therefore, advised to consult their tax advisors
with regard to how they may be impacted by the Distribution.
On behalf of the Board
DG MacLeod GB Dalgleish Mount Edgecombe
Chairman Managing Director 13 November 2013
CORPORATE INFORMATION
Directors:
DG MacLeod (Chairman)*, GB Dalgleish (Managing Director),
MH Abdool-Samad, MI Carr#*, MJ Hankinson*, JP Hulley, D Konar*,
PA Lister#*, PM Madi*, CW Molope*, AR Mpungwe (Tanzanian)*,
T S Munday*, GM Rhodes#*, L W Riddle.
# British * Non-executive
Registered office: Illovo Sugar Park,
1 Montgomery Drive, Mount Edgecombe, KwaZulu-Natal, South Africa
Postal address: P O Box 194, Durban, 4000
Telephone: +27 31 508 4300
Telefax: +27 31 508 4535
Website: www.illovosugar.com
Transfer Secretaries:Link Market Services South Africa Proprietary
Limited, Rennie House, 13th Floor, 19 Ameshoff Street,
Braamfontein, 2001
P O Box 4844, Johannesburg, 2000
Auditors: Deloitte & Touche
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
CONDENSED GROUP INCOME STATEMENT
Unaudited Audited
Six months ended Year ended
30 September 31 March
2013 2012* Change 2013*
Notes Rm Rm % Rm
Revenue 6 238.5 5 070.0 23 10 980.7
Operating profit 1 626.4 1 485.7 9 1 887.0
Dividend income 0.6 - 2.3
Net financing costs 3 152.9 150.4 295.4
Profit before non-trading items 1 474.1 1 335.3 1 593.9
Share of profit from associates 15.1 2.7 5.7
Material items 4 2.6 1.0 4.6
Profit before taxation 1 491.8 1 339.0 1 604.2
Taxation 376.1 376.2 505.7
Profit for the period 1 115.7 962.8 1 098.5
Attributable to:
Shareholders of Illovo Sugar Limited 878.0 767.8 14 859.9
Non-controlling interest 237.7 195.0 238.6
1 115.7 962.8 1 098.5
Other comprehensive income
Foreign currency translation differences 402.8 (215.0) (231.2)
Adjustments in respect of cash flow hedges, net of tax (6.6) 5.5 2.1
Actuarial (losses)/gains on post-retirement obligations, net of
tax (2.9) 12.7 (15.4)
Hedge of net investment in foreign subsidiaries 30.2 6.2 (50.3)
Total comprehensive income for the period 1 539.2 772.2 803.7
Attributable to:
Shareholders of Illovo Sugar Limited 1 211.4 633.8 638.3
Non-controlling interest 327.8 138.4 165.4
1 539.2 772.2 803.7
Headline earnings per share (cents) 5 190.1 166.7 14 186.0
Diluted headline earnings per share (cents) 190.1 166.6 185.9
Basic earnings per share (cents) 190.7 166.9 186.9
Diluted basic earnings per share (cents) 190.6 166.7 186.8
Distribution per share (cents) 6 37.0 34.0 9 95.0
* Amounts restated, refer to note 9.
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
Unaudited Audited
30 September 31 March
2013 2012* 2013*
Rm Rm Rm
ASSETS
Non-current assets 8 625.1 7 018.8 7 937.6
Property, plant and equipment 6 641.8 5 473.1 6 209.5
Cane roots 1 492.0 1 164.9 1 260.0
Intangible assets 281.5 244.2 266.1
Investments and loans 209.8 136.6 202.0
Current assets 7 351.5 6 312.3 4 546.7
Inventories and factory overhaul 3 681.8 2 959.9 1 218.3
Growing cane 1 573.8 1 314.3 1 520.4
Trade and other receivables 1 635.7 1 370.2 1 337.6
Financial instruments 14.5 23.1 16.9
Cash and cash equivalents 445.7 644.8 453.5
Total assets 15 976.6 13 331.1 12 484.3
EQUITY AND LIABILITIES
Total equity 8 175.4 7 112.8 6 974.7
Equity holders' interest 6 899.8 6 074.2 5 968.5
Non-controlling interest 1 275.6 1 038.6 1 006.2
Non-current liabilities 2 788.8 2 312.7 2 353.2
Long-term borrowings 1 407.8 1 209.1 1 164.0
Deferred taxation 1 077.8 766.8 872.7
Other liabilities 303.2 336.8 316.5
Current liabilities 5 012.4 3 905.6 3 156.4
Short-term borrowings 2 310.1 1 697.2 1 162.4
Trade and other payables 2 686.3 2 196.4 1 983.7
Financial instruments 16.0 12.0 10.3
Total equity and liabilities 15 976.6 13 331.1 12 484.3
OTHER SALIENT FEATURES
Note
Operating margin (%) 26.1 29.3 17.2
Interest cover (times) 10.6 9.9 6.4
Effective tax rate (%) 25.5 28.2 31.7
Net debt : equity ratio 7 40.0 31.8 26.9
Net asset value per share (cents) 1 775.3 1 545.9 1 514.8
Net borrowings 3 272.2 2 261.5 1 872.9
Depreciation 199.2 161.9 259.9
Capital expenditure 346.0 230.2 970.7
- Expansion capital 158.3 68.6 640.8
- Replacement capital 184.1 140.2 291.0
342.4 208.8 931.8
- Expansion of area under cane 1.5 14.7 28.4
- Product registration costs 2.1 6.7 10.5
Capital commitments 779.2 906.3 1 013.6
- Contracted 162.2 177.6 152.7
- Approved but not contracted 617.0 728.7 860.9
Lease commitments 212.0 225.9 201.7
Contingent liabilities 123.1 78.6 119.9
* Amounts restated, refer to note 9.
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
Six months ended Year ended
30 September 31 March
2013 2012* 2013*
Rm Rm Rm
Share capital and share premium
Balance at beginning of the period 2 055.4 2 489.8 2 489.8
Issue of share capital 0.8 1.0 3.1
Transfer to distribution reserve (170.1) (156.5) (437.5)
Balance at end of the period 1 886.1 2 334.3 2 055.4
Share-based payments reserve
Balance at beginning and end of the period 13.1 13.1 13.1
Non-distributable reserves
Balance at beginning of the period 42.3 155.8 155.8
Transfer of realised profit on disposal of property to retained
earnings - - (82.0)
Release of non-controlling shareholders transactions - - (31.2)
Transfer of foreign currency translation reserve (343.1) 151.1 211.7
Total comprehensive income:
- Foreign currency translation 313.4 (163.1) (167.4)
- Cash flow hedges (5.9) 4.4 (0.3)
- Hedge of net investment in foreign subsidiaries 29.7 12.0 (44.3)
Balance at end of the period 36.4 160.2 42.3
Retained earnings
Balance at beginning of the period 3 576.8 2 706.1 2 706.1
Transfer of realised profit on disposal of property from non-
distributable reserves - - 82.0
Release of non-controlling shareholders transactions - - 31.2
Transfer of foreign currency translation reserve 343.1 (151.1) (211.7)
Gain on redemption of preference shares - 74.7 118.9
Total comprehensive income:
- Profit for the period 878.0 767.8 859.9
- Actuarial (losses)/gains on post-retirement obligations (3.8) 12.7 (9.6)
Balance at end of the period 4 794.1 3 410.2 3 576.8
Distribution reserve
Balance at beginning of the period 280.9 197.8 197.8
Transfer from share premium 170.1 156.5 437.5
Distributions paid (280.9) (197.9) (354.4)
Balance at end of the period 170.1 156.4 280.9
Equity holders' interest 6 899.8 6 074.2 5 968.5
Non-controlling interest
Balance at beginning of the period 1 006.2 902.7 902.7
Distributions paid (58.4) (39.8) (103.6)
Change in shareholding - 37.3 41.7
Total comprehensive income:
- Foreign currency translation 89.4 (51.9) (63.8)
- Hedge of net investment in foreign subsidiary 0.5 ( 5.8) (6.0)
- Cash flow hedges (0.7) 1.1 2.4
- Actuarial gains/(losses) on post-retirement obligations 0.9 - (5.8)
- Profit for the period 237.7 195.0 238.6
Balance at end of the period 1 275.6 1 038.6 1 006.2
Total equity 8 175.4 7 112.8 6 974.7
* Amounts restated, refer to note 9.
CONDENSED GROUP STATEMENT OF CASH FLOWS
Unaudited Audited
Six months ended Year ended
30 September 31 March
2013 2012* 2013*
Rm Rm Rm
Cash flows from operating and investing activities
Cash operating profit 1 846.8 1 440.6 1 551.9
Working capital requirements (2 106.3) (2 138.7) (516.5)
Cash (utilised by)/generated from operations (259.5) (698.1) 1 035.4
Replacement capital expenditure (184.1) (140.2) (291.0)
Financing costs, taxation and distributions (666.2) (488.9) (944.6)
Net investment in future operations (161.9) (90.0) (679.7)
Acquisition of business 15.6 - -
Other movements (5.3) 36.8 51.0
Net cash outflows before financing activities (1 261.4) (1 380.4) (828.9)
Borrowings raised/(repaid) 1 230.3 641.0 (30.1)
Other financing activities 0.8 38.3 3.1
Net decrease in cash and cash equivalents (30.3) (701.1) (855.9)
Cash and cash equivalents at the beginning of the year 453.5 1 381.6 1 381.6
Exchange rate translation 22.5 (35.7) (72.2)
Cash and cash equivalents at the end of the year 445.7 644.8 453.5
* Amounts restated, refer to note 9.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. Basis of preparation
These unaudited condensed interim results for the six months ended 30 September 2013 have been prepared in
accordance with International Financial Reporting Standard, IAS 34 Interim Financial Reporting, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and the requirements of the Companies Act of South
Africa. The interim results have been prepared under the supervision of Mr M H Abdool-Samad, CA(SA), the group
financial director. The accounting policies applied are consistent with those of the previous interim results, with the
exception of the adoption of IFRS 11 Joint Arrangements and the amendments relating to IAS 19 (revised) Employee
Benefits.
2. Impact of the application of new and revised standards
IFRS 11 Joint Arrangements
IFRS 11 requires equity accounting for joint ventures and eliminates the proportionate consolidation option of accounting.
Previously, the group proportionately consolidated all joint ventures which entailed that it included its share of the assets,
liabilities, income and expenses of jointly controlled entities on a line-by-line basis in its financial statements.
Under the equity method, the investments in joint ventures are initially recognised at cost and the carrying amounts are
increased or decreased to recognise the group's share of profit or loss and movements in other comprehensive income of
joint ventures after the date of acquisition. The group's share of the profit or loss of joint ventures is recognised as a single
line item in profit or loss under the equity method.
The change from proportionate consolidation to equity accounting resulted in a change in individual asset, liability, income,
expense and cash flow items with no material impact on equity or profit attributable to equity holders.
IAS 19 (revised) Employee Benefits
IAS 19 (revised) impacted the measurements of the various components representing movements in the defined benefit
pension obligation and associated disclosures. As the group has always recognised actuarial gains and losses immediately
outside profit and loss, the group's total obligation was unchanged.
The impact of the application of IFRS 11 and IAS 19 (revised) on the group's financial results, financial position and cash
flows is disclosed in note 9.
Unaudited Audited
Six months ended Year ended
30 September 31 March
2013 2012* 2013*
Rm Rm Rm
3. Net financing costs
Interest paid 173.1 173.7 322.0
Less: capitalised (19.4) (7.4) (21.7)
153.7 166.3 300.3
Interest received (2.3) (13.5) (17.6)
Foreign exchange losses/(gains) 1.5 (2.4) 12.7
152.9 150.4 295.4
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued)
Unaudited Audited
Six months ended Year ended
30 September 31 March
2013 2012* 2013*
Rm Rm Rm
4. Material items
Profit on disposal of property 0.4 1.0 1.5
Profit on previously impaired assets 0.5 - 3.1
Gain on bargain purchase 1.7 - -
Material profit before taxation 2.6 1.0 4.6
Taxation - - -
Non-controlling interest (0.2) (0.4) -
Material profit attributable to shareholders
of Illovo Sugar Limited 2.4 0.6 4.6
5. Determination of headline earnings
Profit attributable to shareholders 878.0 767.8 859.9
Adjusted for:
- Profit on disposal of property (0.4) (1.0) (1.5)
- Profit on disposal of previously impaired assets (0.5) - (3.1)
- Gain on bargain purchase (1.7) - -
Total tax effect of adjustments - - -
Total non-controlling interest effect
of adjustments 0.2 0.4 0.6
Headline earnings 875.6 767.2 855.9
Number of shares in issue (millions) 460.5 460.1 460.4
Weighted average number of shares on which
headline earnings per share are based (millions) 460.5 460.1 460.2
Headline earnings per share (cents) 190.1 166.7 186.0
6. Distribution per share
The distribution per share of 37.0 cents represents an interim capital distribution declared out of share premium
(2012: interim distribution of 34.0 cents).
7. Net debt:equity ratio
The net debt:equity ratio is calculated as interest-bearing liabilities, net of cash and cash equivalents, divided by total equity.
8. Segmental analysis
Unaudited Audited
Six months ended Year ended
30 September 31 March
2013 2012* 2013*
Rm % Rm % Rm
BUSINESS SEGMENTS
Revenue
Sugar production 3 663.0 59 2 624.6 52 7 610.8
Cane growing 2 178.6 35 2 065.2 41 2 565.5
Downstream and co-generation 396.9 6 380.2 7 804.4
6 238.5 5 070.0 10 980.7
Operating profit
Sugar production 846.5 52 659.3 45 1 035.0
Cane growing 717.5 44 777.2 52 760.5
Downstream and co-generation 62.4 4 49.2 3 91.5
1 626.4 1 485.7 1 887.0
GEOGRAPHICAL SEGMENTS
Revenue
Malawi 1 024.3 16 916.4 18 1 829.8
Zambia 1 615.5 26 1 231.8 24 2 519.8
South Africa 1 565.3 25 1 526.0 30 4 081.3
Swaziland 1 111.4 18 788.6 16 1 314.9
Mozambique 497.4 8 397.4 8 536.4
Tanzania 424.6 7 209.8 4 698.5
6 238.5 5 070.0 10 980.7
Operating profit
Malawi 544.2 33 698.1 46 899.3
Zambia 483.8 30 334.7 23 478.8
South Africa 159.8 10 164.2 11 150.3
Swaziland 273.7 17 143.2 10 155.8
Mozambique 153.4 9 123.1 8 109.1
Tanzania 11.5 1 22.4 2 93.7
1 626.4 1 485.7 1 887.0
Total assets
Malawi 2 441.3 16 1 700.8 13 1 560.1
Zambia 4 628.5 30 3 701.5 29 3 777.5
South Africa 3 919.1 25 3 434.1 27 2 422.7
Swaziland 2 079.3 13 2 017.2 16 2 068.5
Mozambique 872.9 6 718.1 6 809.1
Tanzania 1 575.3 10 1 091.5 9 1 376.0
15 516.4 12 663.2 12 013.9
Note: Total assets excludes cash and cash equivalents and financial instruments.
* Amounts restated, refer to note 9.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued)
9. Impact of the application of new and revised standards
Unaudited six months ended Audited year ended
30 September 2012 31 March 2013
Previously Effect of Previously Effect of
reported restatement Restated reported restatement Restated
Rm Rm Rm Rm Rm Rm
INCOME STATEMENT
Revenue 5 136.7 (66.7) 5 070.0 11 128.9 (148.2) 10 980.7
Operating profit 1 498.9 (13.2) 1 485.7 1 901.0 (14.0) 1 887.0
Dividend income - - - 2.3 - 2.3
Net financing costs 146.1 4.3 150.4 279.6 15.8 295.4
Profit before non-trading items 1 352.8 (17.5) 1 335.3 1 623.7 (29.8) 1 593.9
Share of (loss)/profit from associates (0.1) 2.8 2.7 0.7 5.0 5.7
Material items 1.0 - 1.0 4.6 - 4.6
Profit before taxation 1 353.7 (14.7) 1 339.0 1 629.0 (24.8) 1 604.2
Taxation 381.0 (4.8) 376.2 513.9 (8.2) 505.7
Profit for the period 972.7 (9.9) 962.8 1 115.1 (16.6) 1 098.5
Other comprehensive income
Foreign currency translation differences (215.0) - (215.0) (231.2) - (231.2)
Adjustments in respect of cash flow hedges, net of
tax 5.5 - 5.5 2.1 - 2.1
Actuarial gains/(losses) on post-retirement
obligations, net of tax 2.8 9.9 12.7 (32.0) 16.6 (15.4)
Hedge of net investment in foreign subsidiaries 6.2 - 6.2 (50.3) - (50.3)
Total comprehensive income for the period 772.2 - 772.2 803.7 - 803.7
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued)
9. Impact of the application of new and revised standards (continued)
Unaudited six months ended 30 September 2012 Audited year ended 31 March 2013
Previously reported Effect of restatement Restated Previously reported Effect of restatement Restated
Rm Rm Rm Rm Rm Rm
STATEMENT OF FINANCIAL POSITION
ASSETS
Non-current assets 6 993.2 25.6 7 018.8 7 881.1 56.5 7 937.6
Property, plant and equipment 5 487.8 (14.7) 5 473.1 6 223.4 (13.9) 6 209.5
Cane roots 1 164.9 - 1 164.9 1 260.0 - 1 260.0
Intangible assets 244.2 - 244.2 266.1 - 266.1
Investments and loans 96.3 40.3 136.6 131.6 70.4 202.0
Current assets 6 354.0 (41.7) 6 312.3 4 635.3 (88.6) 4 546.7
Inventories and factory overhaul 2 995.7 (35.8) 2 959.9 1 253.7 (35.4) 1 218.3
Growing cane 1 314.3 - 1 314.3 1 520.4 - 1 520.4
Trade and other receivables 1 365.1 5.1 1 370.2 1 370.1 (32.5) 1 337.6
Financial instruments 23.1 - 23.1 16.9 - 16.9
Cash and cash equivalents 655.8 (11.0) 644.8 474.2 (20.7) 453.5
Total assets 13 347.2 (16.1) 13 331.1 12 516.4 (32.1) 12 484.3
EQUITY AND LIABILITIES
Total equity 7 112.8 - 7 112.8 6 974.7 - 6 974.7
Equity holders' interest 6 074.2 - 6 074.2 5 968.5 - 5 968.5
Non-controlling interest 1 038.6 - 1 038.6 1 006.2 - 1 006.2
Non-current liabilities 2 313.3 (0.6) 2 312.7 2 355.6 (2.4) 2 353.2
Long-term borrowings 1 209.1 - 1 209.1 1 166.4 (2.4) 1 164.0
Deferred taxation 767.4 (0.6) 766.8 872.7 - 872.7
Other liabilities 336.8 - 336.8 316.5 - 316.5
Current liabilities 3 921.1 (15.5) 3 905.6 3 186.1 (29.7) 3 156.4
Short-term borrowings 1 697.2 - 1 697.2 1 174.4 (12.0) 1 162.4
Trade and other payables 2 211.9 (15.5) 2 196.4 2 001.4 (17.7) 1 983.7
Financial instruments 12.0 - 12.0 10.3 - 10.3
Total equity and liabilities 13 347.2 (16.1) 13 331.1 12 516.4 (32.1) 12 484.3
STATEMENT OF CASH FLOWS
Cash flows from operating and investing activities
Cash operating profit 1 453.8 (13.2) 1 440.6 1 567.9 (16.0) 1 551.9
Working capital requirements (2 136.2) (2.5) (2 138.7) (506.4) (10.1) (516.5)
Cash (utilised by)/generated from operations (682.4) (15.7) (698.1) 1 061.5 (26.1) 1 035.4
Replacement capital expenditure (140.4) 0.2 (140.2) (291.4) 0.4 ( 291.0)
Financing costs, taxation and distributions (485.8) (3.1) (488.9) (931.4) (13.2) (944.6)
Net investment in future operations (90.0) - (90.0) (679.7) - (679.7)
Other movements 20.7 16.1 36.8 23.4 27.6 51.0
Net cash outflows before financing activities (1 377.9) (2.5) (1 380.4) (817.6) (11.3) (828.9)
Borrowings raised/(repaid) 641.0 - 641.0 (30.1) - ( 30.1)
Other financing activities 38.3 - 38.3 3.1 - 3.1
Net decrease in cash and cash equivalents (698.6) (2.5) (701.1) (844.6) (11.3) (855.9)
Cash and cash equivalents at the beginning of the year 1 390.1 (8.5) 1 381.6 1 390.1 (8.5) 1 381.6
Exchange rate translation (35.7) - (35.7) (71.3) (0.9) ( 72.2)
Cash and cash equivalents at the end of the year 655.8 (11.0) 644.8 474.2 (20.7) 453.5
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