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PIONEER FOOD GROUP LIMITED - Summary Consolidated Financial Statements For The Year Ended 30 September 2015

Release Date: 24/11/2015 07:05
Code(s): PFG     PDF:  
Wrap Text
Summary Consolidated Financial Statements For The Year Ended 30 September 2015

Pioneer Food Group Limited
Incorporated in the Republic of South Africa
Registration number: 1996/017676/06
Tax registration number: 9834/695/71/1
Share code: PFG
ISIN code: ZAE000118279
("Pioneer Foods" or "the Group" or "the Company")

SUMMARY CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015

PIONEER FOODS SALIENT FEATURES
For continuing operations
Revenue                                            R18.7bn   +6%
Adjusted operating profit 
(before items of a capital nature)*                R2.15bn   +28%
Adjusted headline earnings per share*                 832c   +30%
Final gross dividend per share                        237c   +52%

Continuing operations:
Revenue                                    R18 748 million    +6% 
Adjusted operating profit 
(before items of a capital nature)*         R2 153 million   +28% 
Adjusted headline earnings*                 R1 534 million   +31% 
Adjusted headline earnings per share*            832 cents   +30% 
Group:
Earnings                                    R1 130 million   +17% 
Earnings per share                               613 cents   +16% 
Diluted earnings per share                       565 cents   +12% 
Adjusted earnings per share**                    807 cents   +28%
Diluted adjusted earnings per share**            744 cents   +24%
Headline earnings                           R1 227 million   +16% 
Headline earnings per share                      665 cents   +16%
Diluted headline earnings per share              613 cents   +12% 
Adjusted headline earnings*                 R1 534 million   +23% 
Adjusted headline earnings per share*            832 cents   +23% 
Diluted adjusted headline earnings per share*    767 cents   +19%
Net asset value per share                      3 758 cents   +13% 
Final gross dividend per listed 
ordinary share (2014: 156 cents)                 237 cents   +52% 
Total gross dividend per listed 
ordinary share (2014: 221 cents)                 332 cents   +50% 

Headline earnings (“HE”) is calculated based on Circular 2/2013 issued by the South African Institute of Chartered Accountants.
* HE and operating profit (before items of a capital nature) are adjusted for the impact of the share-based payment charge on the B-BBEE Phase I transaction on profit or loss due to the volatility of this share-based payment charge.
* Earnings are adjusted for the same share-based payment charge as made for adjusted HE and also for the 2015 impairment of Quantum Foods shares held by the consolidated Phase II B-BBEE equity transaction special purpose entities, 
amounting to R50.6 million.

Pioneer Foods: +27 21 974 4000
Phil Roux: +27 73 306 4804 phil.roux@pioneerfoods.co.za
Cindy Hess: +27 83 285 7043 cindy.hess@pioneerfoods.co.za

COMMENTARY
INTRODUCTION
The Group achieved pleasing results for the financial year ended 30 September 2015 despite a vulnerable South African economy, sustained competition and significant cost push. 
The following highlights underpinned the performance:
• Volume growth and share gains in most key categories
• Second half recovery in fruit exports
• Progressive expansion of bakery margins
• Containment of operating costs
• Successful exit of biscuits and Pepsi 
• Acquisition and integration of the Nigerian joint venture

FINANCIAL PERFORMANCE
Continuing operations – excluding the Phase I B-BBEE share-based payment charge and the impairment of Quantum Foods shares relating to the Phase II B-BBEE transaction participants
Revenue from continuing operations increased by 6% to R18.7 billion (7% excluding Pepsi and biscuits) for the year under review. Despite the competitive landscape, pleasing volume growth was achieved in key categories. 

Cost of goods sold increased 4% to R12.8 billion, benefiting from robust conversion cost containment initiatives and procurement savings. Significant cost push was offset by rigorous cost control and the extraction of 
efficiencies across the value chain, resulting in a 5% increase in other operating expenses to R4 007 million for the year. 

The Group gross profit margin, as a result, improved from 30.4% to 31.9%, whilst the operating profit margin (before items of a capital nature) expanded a further two percentage points to 11.5% during the year under review. 
Operating profit, before items of a capital nature, and adjusted as per above, increased by 28% to R2 153 million (2014: R1 680 million). 

Profit before tax amounted to R1 766 million (2014: R1 400 million) after financing costs of R142 million (2014: R138 million) and income from joint ventures and associates of R71 million (2014: R70 million). 
Bokomo Namibia, Bokomo Botswana and Bowman Ingredients SA delivered solid results, whilst Heinz recovered from supply chain difficulties in the first half. 

Adjusted headline earnings per share from continuing operations, before the Phase I B-BBEE share-based payment charge, increased by 30% to 832 cents per share (2014: 637 cents per share). 

Earnings from continuing operations, on an adjusted basis, increased by 34% to 831 cents per share (2014: 619 cents per share). 

Essential Foods
Essential Foods delivered exceptional results in a low growth and contested environment, whilst successfully navigating challenging soft commodity procurement vagaries. The first half delivered strong maize volumes which 
came under pressure in the second half due to exponential cost push inflation.  Bakeries continued to make progressive strides in expanding its operating margin through the relentless focus on key value drivers underpinning 
the strategy. A turnaround in rice profitability was achieved due to a strong increase in volumes and efficiencies. Pasta continued to contribute positively. Essential Foods recorded a 31% increase in operating profit for
the year to R1.3 billion, while operating margin improved from 9.2% to 11.3%.

Groceries
The Groceries division successfully exited both biscuits and Pepsi whilst achieving excellent growth in wheat biscuits, cornflakes and long life juice. The smaller brands underperformed, requiring increased attention. 
Groceries recorded a 26% increase in operating profit for the year to R435 million, while operating margin improved from 7.2% to 9.1%. 

International
The newly divisionalised International business contributed 14% of total revenue and grew well ahead of the local market, bolstered by favourable international supply and demand dynamics in fruit exports in the second half.
International recorded a 22% increase in operating profit for the year to R444 million, while operating margin improved from 16.0% to 17.0%.

Total Group Earnings
The strong underlying financial performance of the Group has, however, been impacted by the effect of the 6 October 2014 unbundling of Quantum Foods, discontinued operations and the impact of the 2006 Phase I B-BBEE 
share-based payment charge. 

Total Group headline earnings per share, on an adjusted basis, increased by 23% to 832 cents per share (2014: 678 cents per share). 

Earnings for the Group in total, on an adjusted basis, increased by 28% to 807 cents per share (2014: 629 cents per share). 

The impact of the non-operational costs related to the Phase I B-BBEE transaction  
The 2006 Phase 1 B-BBEE transaction, benefiting more than 11 000 employees, is a cash-settled scheme. The number of participants, since inception, has declined to 2 579 as at 30 September 2015 (2014: 3 218), as a result of 
general staff turnover and the exit of Quantum Foods’ employees. The pre-tax value paid to such beneficiaries amounts to R374 million since its inception in 2006. The outstanding obligation is remeasured to fair value taking 
into account the Pioneer Foods share price at each reporting date. For the year under review the share price increased by 66% from R118.00 to R195.76, resulting in a charge of R307 million. In 2014 the share price increased by 
35%, from R87.50 to R118.00, resulting in a charge of R187 million.


Quantum Foods unbundling
Quantum Foods was unbundled on 6 October 2014. During the year under review, a loss on the disposal of treasury related Quantum Foods shares and impairments in respect of Quantum Foods shares held by the 2012 Phase II B-BBEE 
consolidated special purpose vehicles, were recognised.  

FINANCIAL POSITION
Net cash from operating activities amounting to R2 512 million (2014: R2 134 million) improved 18% on the prior year. Working capital investment for the year under review increased to 14.0% of revenue (2014: 11.5%). 
The increase was due to the timing of the payment for raw material imports and significant maize price inflation. Working capital continues to be managed optimally. 

Capital expenditure investment for the year amounted to R652 million (2014: R486 million) and included R170 million in capital commitments carried forward from the previous financial year. 

Significant projects undertaken during the year included the Epping bakery and the completion of the Malmesbury Mill upgrades. The balance of the capital expenditure included general asset care including a R218 million investment 
in the bakery fleet. Proceeds on the sale of property plant and equipment of R176 million (2014: R56 million) included the disposal proceeds in respect of the old bakery fleet and the biscuit and Pepsi lines. The Board committed 
to the expansions of the Aeroton bakery in Gauteng and the Atlantis Weetbix plant. These are the major components of the R492 million in capital commitments carried forward to the 2016 financial year.

The strong financial performance, and prudent approach to capital expenditure investment, translated into a marked improvement in the return on net assets at a Group and segmental level. 

Net interest-bearing debt, excluding third-party debt related to the Phase II B-BBEE transaction partners, decreased by R263 million to a net positive position of R97 million or a net debt to equity ratio of -1% (2014: 3%).  
The Group’s net debt to EBITDA ratio, on an adjusted basis, is -4% (2014: 8%). 

On 1 October 2015, all conditions precedent for the disposal of the Group’s interest in Maitland Vinegar Works (Pty) Ltd were met. At 30 September 2015, the assets and liabilities relating to this interest have been presented as 
assets held for sale. 

As announced on SENS on 23 April 2015, Pioneer Foods entered into an agreement to acquire 50% in Future Life Health Products (Pty) Ltd. On 9 November 2015 the Competition Tribunal of South Africa granted conditional approval of 
this transaction. The conditions will have no negative impact on the commercial merits of this investment. 


PROSPECTS
We are pleased with the quality of earnings and the strategic progress achieved to date. The low growth and competitive environment, exacerbated by cost push due to rand weakness and drought conditions, will place significant pressure 
on volumes and margins. Pioneer Foods will continue to optimise its position amidst these challenges.
  
DIVIDEND
A gross final dividend of 237 cents (2014: 156 cents) per share has been approved and declared by the Board for the year ended 30 September 2015 from income reserves. The applicable dates for the final dividend are as follows:
Last date of trading cum dividend            Friday, 22 January 2016
Trading ex dividend commences                Monday, 25 January 2016
Record date                                  Friday, 29 January 2016
Dividend payable                             Monday, 1 February 2016

The total dividend for the year under review, increased to 332 cents per share, an increase of 50% on the prior year. 

A gross final dividend of 71.10 cents (2014: 46.80 cents) per class A ordinary share, being 30% of the gross final dividend payable to ordinary shareholders in terms of the rules of the relevant employee scheme, will be paid during 
February 2016. 

Share certificates may not be dematerialised or materialised between Monday, 25 January 2016 and Friday, 29 January 2016, both days inclusive.

By order of the Board

ZL COMBI           PM ROUX
Chairman           Chief Executive Officer

Bellville
24 November 2015

Pioneer Food Group Limited
Summary consolidated financial statements for the year ended 30 September 2015 

Group statement of comprehensive income

                                                                                                       Audited       Audited
                                                                                                    Year ended    Year ended
                                                                                                  30 September  30 September
                                                                                                          2015          2014
                                                                                                           R'm           R'm
Continuing operations
Revenue                                                                                               18 748.2      17 698.6
Cost of goods sold                                                                                   (12 773.7)    (12 321.2)
Gross profit                                                                                           5 974.5       5 377.4
Other income and gains/(losses) - net                                                                    184.7         115.9
Other expenses                                                                                        (4 313.3)     (4 000.5)
Excluding the following:                                                                              (4 006.5)     (3 813.2)
Phase I B-BBEE transaction share-based payment charge                                                   (306.8)       (187.3)
Items of a capital nature                                                                                (48.5)        (47.0)
Operating profit                                                                                       1 797.4       1 445.8
Investment income                                                                                         39.3          22.3
Finance costs                                                                                           (142.1)       (138.0)
Share of profit of investments accounted for using the equity method                                      71.4          69.8
Profit before income tax                                                                               1 766.0       1 399.9
Income tax expense                                                                                      (588.7)       (451.8)
Profit for the year from continuing operations                                                         1 177.3         948.1
(Loss)/profit for the year from discontinued operations (attributable to owners of the parent)           (45.0)         18.2
Profit for the year                                                                                    1 132.3         966.3
Other comprehensive income/(loss) for the year
Items that will not subsequently be reclassified to profit or loss:
Remeasurement of post-employment benefit obligations                                                      (1.0)          0.6
Items that may subsequently be reclassified to profit or loss:                                            70.3          10.8
Fair value adjustments to cash flow hedging reserve                                                       12.3          (9.3)
For the year                                                                                              86.9          62.8
Current income tax effect                                                                                (31.0)        (18.4)
Deferred income tax effect                                                                                 6.6           1.7
Reclassified to profit or loss                                                                           (69.8)        (75.8)
Current income tax effect                                                                                 26.4          20.7
Deferred income tax effect                                                                                (6.8)         (0.3)
Fair value adjustments on available-for-sale financial assets                                             (4.6)          4.9
For the year                                                                                              (0.6)          9.9
Deferred income tax effect                                                                                (0.2)         (1.2)
Reclassified to profit or loss                                                                            (3.8)         (3.8)
Share of other comprehensive income of investments accounted for using the equity method                  22.7           3.1
Movement on foreign currency translation reserve                                                          39.9          12.1
Total comprehensive income for the year                                                                1 201.6         977.7
Profit/(loss) for the year attributable to:
Owners of the parent
For continuing operations                                                                              1 175.4         947.0
For discontinued operations                                                                              (45.0)         18.2
Non-controlling interest
For continuing operations                                                                                  1.9           1.1
                                                                                                       1 132.3         966.3
Total comprehensive income/(loss) for the year attributable to:
Owners of the parent
For continuing operations                                                                              1 244.7         973.7
For discontinued operations                                                                              (45.0)          2.9
Non-controlling interest
For continuing operations                                                                                  1.9           1.1
                                                                                                       1 201.6         977.7

Headline earnings reconciliation
                                                                                                       Audited       Audited
                                                                                                    Year ended    Year ended
                                                                                                  30 September  30 September
                                                                                                          2015          2014
                                                                                                           R'm           R'm
Reconciliation between profit/(loss) attributable to owners of the parent and headline earnings
Profit/(loss) attributable to owners of the parent                                                     1 130.4         965.2
For continuing operations                                                                              1 175.4         947.0
For discontinued operations                                                                              (45.0)         18.2
                                                                                                          
Remeasurement of items of a capital nature - continuing operations                                        50.8          34.1
Net loss on disposal of property, plant and equipment and intangible assets                                1.7           1.3
Net profit on disposal of available-for-sale financial assets                                             (3.8)         (3.7)
Impairment of property, plant and equipment and available-for-sale financial assets                       50.6          49.4
Before Tax                                                                                                48.5          47.0
Tax effect on remeasurement of items of a capital nature                                                   2.3         (12.9)
                                                                                                          
Remeasurement of items of a capital nature - discontinued operations                                      45.0          55.7
Net profit on disposal of property, plant and equipment and intangible assets                                -          (1.7)
Net loss on unbundling of Quantum Foods and disposal of Quantum Foods shares                              27.4             -
Impairment of property, plant and equipment and intangible assets                                            -          77.7
Before Tax                                                                                                27.4          76.0 
Tax effect on remeasurement of items of a capital nature                                                  17.6         (20.3)
                                              
Remeasurement of items of a capital nature included in equity-accounted results                            1.1           0.1
Effect on remeasurement of items of a capital nature                                                       1.5           0.1
Tax effect on remeasurement of items of a capital nature                                                  (0.4)            -
                                                                                                          
Headline earnings                                                                                      1 227.3       1 055.1
For continuing operations                                                                              1 227.3         981.2
For discontinued operations                                                                                  -          73.9
Phase I B-BBEE transaction share-based payment charge                                                    306.8         187.3
Adjusted headline earnings (Note 1)                                                                    1 534.1       1 242.4
For continuing operations                                                                              1 534.1       1 168.5
For discontinued operations                                                                                  -          73.9

Number of issued ordinary shares (million)                                                               232.7         231.7
Number of issued treasury shares:
- held by subsidiary (million)                                                                            18.0          18.0
- held by share incentive trust (million)                                                                  0.7           1.1
- held by B-BBEE equity transaction participants (million)                                                18.1          18.1
- held by BEE trust (million)                                                                             10.7          10.6
Number of issued class A ordinary shares (million)                                                         4.2           6.0
Weighted average number of ordinary shares (million)                                                     184.5         183.3
Weighted average number of ordinary shares - diluted (million)                                           200.1         192.1
Earnings per ordinary share (cents):
- basic                                                                                                  612.8         526.5
- diluted                                                                                                564.9         502.4
- headline                                                                                               665.3         575.6
- diluted headline                                                                                       613.4         549.2
- adjusted headline (Note 1)                                                                             831.6         677.8
- diluted adjusted headline (Note 1)                                                                     766.7         646.7
- adjusted headline for continuing operations (Note 1)                                                   831.6         637.4
- diluted adjusted headline for continuing operations (Note 1)                                           766.7         608.2
Gross dividend per ordinary share (cents)                                                                332.0         221.0
Gross dividend per class A ordinary share (cents)                                                         99.6          66.3
Net asset value per ordinary share (cents)                                                             3 757.6       3 318.2
Debt to equity ratio (%)                                                                                   5.8          10.9

Note 1:
Headline earnings (“HE”) is calculated based on Circular 2/2013 issued by the South African Institute of Chartered Accountants. Adjusted HE is defined as HE adjusted for the impact of 
the share-based payment charge on the B-BBEE Phase I transaction on profit or loss due to the volatility of this share-based payment charge.


Group statement of financial position
                                                                                                       Audited       Audited
                                                                                                  30 September  30 September
                                                                                                          2015          2014
                                                                                                           R'm           R'm
Assets
Property, plant and equipment                                                                          4 328.9       4 229.1
Goodwill                                                                                                 224.4         220.8
Other intangible assets                                                                                  475.1         457.2
Biological assets                                                                                         16.0          16.0
Investments in and loans to associates and joint ventures                                                574.0         402.3
Available-for-sale financial assets                                                                      141.8          70.0
Trade and other receivables                                                                               24.3          23.4
Deferred income tax                                                                                        0.2           3.7
Non-current assets                                                                                     5 784.7       5 422.5
Current assets                                                                                         6 298.2       5 420.9
Inventories                                                                                            2 678.9       2 423.3
Derivative financial instruments                                                                          20.6          14.9
Trade and other receivables                                                                            2 148.6       1 873.8
Current income tax                                                                                         1.3           1.3
Cash and cash equivalents                                                                              1 448.8       1 107.6
Assets of disposal group classified as held for sale                                                      88.1       2 066.8
Total assets                                                                                          12 171.0      12 910.2

Equity and liabilities
Capital and reserves attributable to owners of the parent                                              6 958.7       6 102.4
Share capital                                                                                             23.3          23.2
Share premium                                                                                          2 430.5       2 255.2
Treasury shares                                                                                       (1 204.1)     (1 186.5)
Other reserves                                                                                           460.5         428.5
Retained earnings                                                                                      5 248.5       4 582.0
Non-controlling interest                                                                                  12.3          10.4
Total equity                                                                                           6 971.0       6 112.8
Non-current liabilities                                                                                2 273.4       2 308.6
Borrowings
B-BBEE equity transaction third-party finance                                                            449.7         449.7
Other                                                                                                    850.5       1 063.8
Provisions for other liabilities and charges                                                             110.4         101.5
Share-based payment liability                                                                            395.8         245.2
Deferred income tax                                                                                      467.0         448.4
Current liabilities                                                                                    2 901.0       3 920.7
Trade and other payables                                                                               2 210.0       2 258.2
Current income tax                                                                                        21.0          18.1
Derivative financial instruments                                                                          15.8           9.7
Borrowings                                                                                               553.9         260.7
Loan from joint venture                                                                                   20.5          15.7
Share-based payment liability                                                                             79.3         115.8
Dividends payable                                                                                          0.5       1 242.5
Liabilities of disposal group classified as held for sale                                                 25.6         568.1
Total equity and liabilities                                                                          12 171.0      12 910.2

Group statement of changes in equity
                                                                                                       Audited       Audited
                                                                                                    Year ended    Year ended
                                                                                                  30 September  30 September
                                                                                                          2015          2014
                                                                                                           R'm           R'm
Share capital, share premium and treasury shares                                                       1 249.7       1 091.9
Opening balance                                                                                        1 091.9       1 020.8
Movement in treasury shares                                                                                5.3           4.4
Ordinary shares acquired by BEE trust                                                                    (22.9)            -
Ordinary shares issued - share appreciation rights                                                       175.6          66.8
Employee share scheme - repurchase of shares                                                              (0.2)         (0.1)
Other reserves                                                                                           460.5         428.5
Opening balance                                                                                          428.5         426.2
Equity compensation reserve transactions                                                                  38.9          26.5
Ordinary shares issued - share appreciation rights                                                      (175.6)        (66.8)
Deferred income tax on share-based payments                                                              105.9          31.8
Share of other comprehensive income of investments accounted for using the equity method                  22.7           3.1
Unbundling of Quantum Foods                                                                               (7.5)            -
Other comprehensive income for the year                                                                   47.6           7.7
Retained earnings                                                                                      5 248.5       4 582.0
Opening balance                                                                                        4 582.0       5 134.3
Profit for the year                                                                                    1 130.4         965.2
Other comprehensive (loss)/income for the year                                                            (1.0)          0.6
Dividends paid                                                                                          (463.3)     (1 519.2)
Management share incentive scheme - disposal of shares                                                     1.4           1.7
Employee share scheme - transfer tax on share transactions                                                (1.0)         (0.6)
Non-controlling interest                                                                                  12.3          10.4
Opening balance                                                                                           10.4           9.3
Profit for the year                                                                                        1.9           1.1
Total equity                                                                                           6 971.0       6 112.8


Group statement of cash flows
                                                                                                       Audited       Audited
                                                                                                    Year ended    Year ended
                                                                                                  30 September  30 September
                                                                                                          2015          2014
                                                                                                           R'm           R'm
Net cash profit from operating activities                                                              2 512.2       2 133.9
Cash effect from hedging activities                                                                       16.2          (7.8)
Working capital changes                                                                                 (546.4)         27.5
Net cash generated from operations                                                                     1 982.0       2 153.6
Income tax paid                                                                                         (475.5)       (386.4)
Net cash flow from operating activities                                                                1 506.5       1 767.2
Net cash flow from investment activities                                                                (422.7)       (392.7)
Property, plant and equipment and intangible assets
- additions                                                                                             (186.3)       (269.7)
- replacements                                                                                          (465.5)       (216.3)
- proceeds on disposal                                                                                   176.3          55.7
Proceeds on disposal of and changes in available-for-sale financial assets and loans                     117.6          (1.1)
Investment in joint ventures                                                                            (126.3)            -
Interest received                                                                                         37.2          24.3
Dividends received                                                                                         2.1           1.6
Dividends received from joint ventures                                                                    22.2          12.8
Net cash flow from financing activities                                                                 (603.5)       (422.0)
Proceeds from borrowings                                                                                 207.1          78.1
Treasury shares acquired by BEE trust                                                                    (22.9)            -
Repurchase of class A ordinary shares from leavers and other share scheme transactions                  (187.1)        (72.3)
Interest paid                                                                                           (137.4)       (150.8)
Dividends paid                                                                                          (463.2)       (277.0)
Net cash, cash equivalents and bank overdrafts on unbundling of Quantum Foods                           (105.6)            -
Net increase in cash, cash equivalents and bank overdrafts                                               374.7         952.5
Net cash, cash equivalents and bank overdrafts at beginning of year                                    1 018.1          65.6
Net cash, cash equivalents and bank overdrafts at end of year                                          1 392.8       1 018.1
Disclosed as continuing operations                                                                     1 380.9         912.5
Disclosed as discontinued operations                                                                         -         105.6
Disclosed as disposal group held for sale                                                                 11.9             -


Group segment report  
                                                                                                       Audited       Audited
                                                                                                    Year ended    Year ended
                                                                                                  30 September  30 September
                                                                                                          2015          2014
                                                                                                                    Restated
                                                                                                           R'm           R'm
Segment revenue (Note 1)
Essential Foods                                                                                       11 334.5      10 651.9
Quantum Foods                                                                                                -       3 591.4
Groceries: Cereals and other (formerly Bokomo Foods)                                                   2 420.3       2 361.8
Groceries: Beverages (formerly Ceres Beverages)                                                        2 377.1       2 411.3
International                                                                                          2 616.3       2 273.6
Total                                                                                                 18 748.2      21 290.0

Segment results (Note 1) 
Essential Foods                                                                                        1 278.5         975.5
Quantum Foods                                                                                                -          21.6
Groceries: Cereals and other (formerly Bokomo Foods)                                                     252.0         220.7
Groceries: Beverages (formerly Ceres Beverages)                                                          182.5         124.7
International                                                                                            444.5         363.4
Other                                                                                                     (4.8)         10.3
                                                                                                       2 152.7       1 716.2
Reversal of depreciation charge in Quantum Foods legal entities (asset held for sale)                        -          54.7
Phase I B-BBEE transaction share-based payment charge                                                   (306.8)       (187.3)
Operating profit before items of a capital nature                                                      1 845.9       1 583.6
Reconciliation of operating profit (before items of a capital nature) to profit before income tax
Operating profit before items of a capital nature                                                      1 845.9       1 583.6
Adjusted for: 
Remeasurement of items of a capital nature                                                               (75.9)       (123.0)
Interest income                                                                                           37.2          24.3
Dividends received                                                                                         2.1           1.6
Finance costs                                                                                           (142.1)       (138.7)
Share of profit of investments accounted for using the equity method                                      71.4          70.4
Profit before income tax (including discontinued operations)                                           1 738.6       1 418.2

Note 1
Includes discontinued operations for the year ended 30 September 2014.

Note 2
Segment revenue and segment results were restated to:
*  Reflect the operations of all exports, other than to Botswana, Namibia, Lesotho and Swaziland, as well as the operations of all foreign operations to a new segment, International; and
*  Allocate all corporate results to the operating segments, except for the B-BBEE Phase I share-based payment charge, the results of the legal entities for the ultimate holding company and the insurance captive, corporate legal costs, 
costs relating to BEE socio-economic and enterprise development and mergers and acquisitions.

Refer to note 10 of the notes to the summary consolidated financial statements for further detail regarding this restatement.

Notes to the summary consolidated financial statements

1. Basis of preparation
The summary consolidated financial statements of the Group for the year ended 30 September 2015 have been prepared in accordance with the requirements of the JSE Limited (“JSE”) for preliminary reports, and the requirements of the 
Companies Act of South Africa, Act 71 of 2008, as amended, applicable to summary financial statements. The Listings Requirements of the JSE require preliminary reports to be prepared in accordance with the framework concepts and 
the measurement and recognition requirements of International Financial Reporting Standards (“IFRS”) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Pronouncements as issued 
by the Financial Reporting Standards Council and also, as a minimum, to contain the information required by IAS 34 - Interim Financial Reporting. This summary report is an extract from audited information, but this summary report has 
not been audited.

The directors take full responsibility for the preparation of the summary consolidated financial statements and that the financial information has been correctly extracted from the underlying financial records.

2. Accounting policies
The accounting policies applied in the preparation of the consolidated financial statements from which the summary consolidated financial statements were derived, are in terms of IFRS and are consistent with those accounting policies
applied in the preparation of the previous consolidated annual financial statements, except for the adoption of the following new standards, amendments to published standards and interpretations that became effective for the current
reporting period beginning on 1 October 2014:

Amendments to IAS 32 - Financial Instruments: Presentation on financial instruments asset and liability offsetting (effective 1 January 2014)
Amendments to IAS 36 - Impairment of Assets on recoverable amount disclosures (effective 1 January 2014)
Amendment to IAS 39 - Financial Instruments: Recognition and Measurement on novation of derivatives and hedge accounting (effective 1 January 2014)
Amendment to IAS 19 - Employee Benefits regarding defined benefit plans (effective 1 July 2014)
Annual improvements 2012 (issued December 2013) (effective 1 July 2014)
Annual improvements 2013 (issued December 2013) (effective 1 July 2014)
IFRIC 21 - Levies (effective 1 January 2014)

The adoption of these amendments to standards and interpretations did not have any material impact on the Group's results and cash flows for the year ended 30 September 2015 and the financial position at 30 September 2015.

In preparing these summary consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty, other than the judgement exercised
in the assessment of joint control over Food Concepts Pioneer Ltd as explained below, were the same as those that applied to the consolidated financial statements for the year ended 30 September 2014.

Assessment of joint control over Food Concepts Pioneer Ltd
Pioneer Foods acquired an interest of 50.1% in Food Concepts Pioneer Ltd ("FCP"), a bakery business in Nigeria, for a purchase consideration of R81.3 million during the period. The transaction became effective on 1 March 2015.

In the interim financial statements for the six months ended 31 March 2015, FCP was consolidated as the Group was of the opinion that it had power over the relevant activities of the company.

The assessment of whether the Group had power over the relevant activities of FCP involved the application of significant judgement and legal interpretation of the respective legal agreements. Since the publication of the interim
financial statements, the Group has reassessed its interpretation and has concluded that, given the requirement for unanimous consent of both parties to the agreement in respect of the most significant relevant activities, a more
appropriate clasification would be that of a joint venture. Consequently, FCP has been accounted for as a joint venture and equity accounted in the financial statements of the Group for the year ended 30 September 2015.

As the transaction is considered immaterial in the context of the financial statements, the interim financial statements for the year ended 31 March 2015 will not be restated in 2016.

                                                                                                                                                   Audited       Audited
                                                                                                                                                Year ended    Year ended
                                                                                                                                              30 September  30 September
                                                                                                                                                      2015          2014
3. Share capital
During the period under review, the following share transactions occurred:
Number of listed issued and fully paid ordinary shares
At beginning of year                                                                                                                           231 691 881   231 006 847
Shares issued in terms of employee share appreciation rights scheme                                                                              1 047 450       685 034
At end of year                                                                                                                                 232 739 331   231 691 881
1,047,450 (30 September 2014: 685,034) listed ordinary shares of 10 cents each were issued 
at an average of R167.71 (30 September 2014: R97.47) per share in terms of the share appreciation rights scheme.
Number of treasury shares held by the share incentive trust
At beginning of year                                                                                                                             1 110 213     1 422 116
Movement in shares                                                                                                                                (380 601)     (311 903)
At end of year                                                                                                                                     729 612     1 110 213
Proceeds on the sale of treasury shares by the share incentive trust (R'000)                                                                         6 660         6 262
Number of treasury shares held by B-BBEE transaction participants
At beginning and end of year                                                                                                                    18 091 661    18 091 661
Number of treasury shares held by Pioneer Foods Broad-Based BEE Trust
At beginning of year                                                                                                                            10 599 988    10 599 988
Shares acquired                                                                                                                                    145 362             -
At end of year                                                                                                                                  10 745 350    10 599 988
Purchase consideration paid for shares acquired by BEE trust (R'000)                                                                                22 940             -
Number of treasury shares held by a subsidiary
At beginning and end of year                                                                                                                    17 982 056    17 982 056
Number of unlisted class A ordinary shares
At beginning of year                                                                                                                             6 043 940     7 367 360
Shares bought back and cancelled                                                                                                                (1 809 640)   (1 323 420)
At end of year                                                                                                                                   4 234 300     6 043 940
Purchase consideration paid for unlisted class A ordinary shares bought back (R'000)                                                               189 405        74 988

4. Borrowings
Pioneer Foods obtained a R300 million vehicle and asset finance facility during the previous year. This facility is used to finance the replacement of the Group's bakery delivery vehicle fleet. The vehicles are acquired in terms of
instalment sales agreements. These borrowings are secured by the vehicles acquired in terms of these agreements. At 30 September 2015, further borrowings obtained during the year in terms of these facilities amounted to R210.5 million.

No other material new borrowings were concluded during the year under review. Changes in borrowings mainly reflect repayments made in terms of agreements. Short-term borrowings fluctuate in accordance with changing working capital
needs.

5. Events after the reporting date
5.1 Dividend
The Board approved and declared a gross final dividend of 237.0 cents (2015: gross interim dividend of 95.0 cents and 2014: gross final dividend of 156.0 cents) per ordinary share. This will amount to approximately R526,125,735 (2015:
interim of R210,743,649 and 2014: final of R345,100,897) depending on the exact number of ordinary shares issued at the record date. In addition, the 10,745,350 (2015 interim: 10,745,350 and 2014 final: 10,683,570) Pioneer Foods shares
issued to the Pioneer Foods Broad-Based BEE Trust, will receive 20% of the dividend payable, i.e. 47.4 cents (2015: gross interim of 19.0 cents and 2014: gross final dividend of 31.2 cents) per share, amounting to R5,093,296 (2015:
interim of R2,041,617 and 2014: final of R3,333,274).

The Board approved a gross final dividend of 71.1 cents (2015: gross interim dividend of 28.5 cents and 2014: gross final dividend of 46.8 cents) per class A ordinary share, being 30% of the dividend payable to the other class ordinary
shareholders in terms of the rules of the relevant employee scheme. This will amount to approximately R3,010,587 (2015: interim of R1,226,047 and 2014: final of R2,223,519) depending on the exact number of class A ordinary shares
issued at the record date.

Additional information disclosed:
These dividends are declared from income reserves and qualify as a dividend as defined in the Income Tax Act, Act 58 of 1962.

Dividends will be paid net of dividends tax of 15%, to be withheld and paid to the South African Revenue Service by the Company. Such tax must be withheld unless beneficial owners of the dividend have provided the necessary documentary
proof to the relevant regulated intermediary that they are exempt therefrom, or entitled to a reduced rate as result of the double taxation agreement between South Africa and the country of domicile of such owner.

The net dividend amounts to 201.450 cents per ordinary share and 60.435 cents per class A ordinary share for shareholders liable to pay dividends tax. The dividend amounts to 237.0 cents per ordinary share and 71.1 cents per class A
ordinary share for shareholders exempt from paying dividends tax.

The number of issued ordinary shares and issued class A ordinary shares is 232,797,446 and 4,121,600 respectively as at the date of this declaration.

5.2 Acquisition of a 50% equity interest in Future Life Health Products (Pty) Ltd ("Future Life")
As announced on SENS on 23 April 2015, Pioneer Foods entered into an agreement to acquire a 50% shareholding in Future Life.

As announced on SENS on 9 November 2015, The Competition Tribunal of South Africa granted conditional approval of this transaction. These conditions will have no negative impact on the commercial prospects for this venture.

5.3 Disposal of interest in Maitland Vinegar Works (Pty) Ltd
On 1 October 2015, all conditions precedent for the disposal of the Group's interest in Maitland Vinegar Works (Pty) Ltd were met. Refer to note 8.2 for further detail.

5.4 Other material events
There have been no other material events requiring disclosure after the reporting date and up to the date of approval of the summary consolidated financial statements by the Board.

6. Contingent liabilities
6.1 Guarantees
The Group had guarantees in issue of R36.5 million (30 September 2014: R50.2 million) as at 30 September 2015, primarily for loans by third parties to contracted suppliers.

As part of the financial assistance provided by Rand Merchant Bank, a division of FirstRand Bank Ltd ("RMB"), to BEE Investors in terms of the B-BBEE equity transaction concluded during 2012, Pioneer Foods (Pty) Ltd provided RMB with a
guarantee amounting to R100 million.

6.2 Dispute with egg contract producers - discontinued operations
Pioneer Foods is defending contractual claims from its former privatised egg contract producers. The matters were set down for arbitration during 2012. Since the hearings commenced in 2012, settlements were negotiated with all except 
one egg contract producer. These settlements had no adverse financial impact on Pioneer Foods.

During the year under review, settlement agreements were reached with Kwazulu Egg Producers (Pty) Ltd and Moerasrivier Boerdery (Pty) Ltd. The claim of the remaining contract egg producer being Flinkwink Properties (Pty) Ltd is still
unresolved.

Pioneer Foods filed pleas to this claim and, in respect of this claim, a counterclaim has been filed to recover damages suffered by Pioneer Foods as a result of breach of contract by the contract producer. No further legal action
transpired during the year under review. Based on legal opinion obtained, management is satisfied that this unresolved matter is low risk and poses no material financial risk to the Group.

Pioneer Foods unbundled its interests in Quantum Foods to its shareholders and subsequently Quantum Foods was listed on the JSE on 6 October 2014. Quantum Foods indemnified Pioneer Foods from any potential financial exposure to the
claims from the egg contract producers.

7. Future capital commitments
Capital expenditure approved by the Board and contracted for amount to R492.0 million (30 September 2014: R299.8 million). Capital expenditure approved by the Board, but not contracted for yet, amount to R867.3 million (30 September
2014: R351.6 million). Capital commitments relating to joint ventures amount to R137.8 million  (30 September 2014: R28.3 million).

8. Non-current assets held for sale and discontinued operations
8.1 Quantum Foods
The assets and liabilities related to the Quantum Foods segment, which include the equity interests held in the wholly owned subsidiaries Quantum Foods Holdings Ltd, Quantum Foods (Pty) Ltd, Philadelphia Chick Breeders (Pty) Ltd,
Lohmann Breeders SA (Pty) Ltd, Bokomo Uganda (Pty) Ltd, Quantum Foods Zambia Ltd and Bokomo Zambia Ltd (included with Quantum Foods until 31 July 2014), have been presented as an "asset held for sale" and as "discontinued operations"
in terms of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations for the year ended 30 September 2014, following the approval of the Board in September 2013 to restructure the Company's interest in the Quantum Foods
segment.

Shareholders were advised on SENS on 5 September 2014 and 18 September 2014 that the Board resolved to proceed with the unbundling of its interest in Quantum Foods and to list Quantum Foods as a separate entity on the JSE. Quantum
Foods was subsequently listed on the JSE on 6 October 2014.

The unbundling was accounted for as a dividend in specie at fair value in accordance with IFRIC 17 - Distributions of Non-cash Assets to Owners. IFRIC 17 requires distributions within its scope to be measured at the fair value of the
assets to be distributed at the date when the dividend is appropriately authorised and is no longer at the entity's discretion. Consequently, an amount of R1,242.2 million, representing the fair value of the interest in Quantum Foods
attributable to external shareholders, was accounted for as a dividend payable to shareholders at 30 September 2014. Refer to Note 9 for the methods and assumptions used to determine the fair value.

A profit of R82.5 million was recognised on the date of unbundling, representing the difference between the carrying amount of the disposal group and the fair value of the dividend in specie. The profit has been included in the line
item "Items of a capital nature" for discontinued operations in the statement of comprehensive income for the year ended 30 September 2015.

Loss on the disposal of Quantum Foods shares
A wholly owned subsidiary, the management share incentive trust, the Pioneer Foods Broad-Based BEE Trust and the consolidated B-BBEE equity transaction participants of Pioneer Food Group, collectively received 47,783,918 shares in
Quantum Foods as part of the unbundling of Quantum Foods due to their shareholding in Pioneer Foods. The shares were initially recognised at the fair value on the date of unbundling. During December 2014, 29,692,257 of these shares
were sold at a loss of R109.9 million (before income tax). The loss has been included in the line item "Items of a capital nature" for discontinued operations in the statement of comprehensive income for the year ended 30 September
2015.

Impairment of Quantum Foods shares
The remaining 18,091,661 shares held by the Phase II B-BBEE equity transaction participants are accounted for as available-for-sale financial assets. As at 30 September 2015, the market value of the Quantum Foods shares was significantly 
lower than the cost price (fair value as at 6 October 2014). Consequently, an impairment loss of R50.6 million has been recognised. The loss has been included in the line item "Items of a capital nature" for continuing operations in the
statement of comprehensive income for the year ended 30 September 2015.
   
                                                                                             Audited      Audited
                                                                                        30 September 30 September
                                                                                               2015         2014
                                                                                                R'm          R'm
Assets of the disposal group classified as held for sale:
Property, plant and equipment                                                                    -       1 075.5
Intangible assets                                                                                -           7.2
Investment in associates                                                                         -           6.1
Inventories                                                                                      -         232.5
Biological assets                                                                                -         292.4
Trade and other receivables                                                                      -         343.5
Deferred income tax                                                                              -           3.1
Derivative financial instruments                                                                 -           0.9
Cash and cash equivalents                                                                        -         105.6
                                                                                                 -       2 066.8
Liabillities of the disposal group classified as held for sale:
Deferred income tax                                                                              -         195.7   
Provision for other liabilities and charges                                                      -          15.6
Trade and other payables                                                                         -         355.3
Current income tax                                                                               -           1.5
                                                                                                 -         568.1

Hedging reserve                                                                                  -           0.2
Currency translation reserve                                                                     -           7.3

The results of discontinued operations and the results recognised on the remeasurement of the Quantum Foods disposal group are as follows:

                                                                                            Audited       Audited
                                                                                         Year ended    Year ended
                                                                                       30 September  30 September
                                                                                               2015          2014
                                                                                                R'm           R'm
Revenue                                                                                           -       3 591.3
Operating profit before items of a capital nature                                                 -          90.8
Items of a capital nature                                                                     (27.4)          1.7 
Investment income                                                                                 -           3.6
Finance costs                                                                                     -          (0.7)
Share of profit of associated companies                                                           -           0.6
(Loss)/profit before income tax                                                               (27.4)         96.0
Income tax                                                                                    (17.6)        (20.7)
(Loss)/profit after income tax                                                                (45.0)         75.3
Loss after income tax recognised on the remeasurement of assets of the disposal group             -         (57.1)
Before income tax                                                                                 -         (77.7)
Income tax                                                                                        -          20.6
(Loss)/profit for the year from discontinued operations                                       (45.0)         18.2
Other comprehensive income/(loss) for the year from discontinued operations                       
Fair value adjustments to cash flow hedging reserve                                               
For the year                                                                                      -           0.3
Deferred income tax effect                                                                        -          (0.1)
Currency translation differences                                                                  -         (15.5)
Total comprehensive (loss)/profit for the year from discontinued operations                   (45.0)          2.9

Cash flows of the disposal group classified as held for sale:
Net cash flow from operating activities                                                           -          93.0
Net cash flow from investment activities                                                          -         (37.8)
Net cash flow from financing activities                                                           -          25.8
Net cash, cash equivalents and bank overdrafts on unbundling of Quantum Foods                (105.6)            -
Net (decrease)/increase in cash, cash equivalents and bank overdrafts                        (105.6)         81.0
Net cash, cash equivalents and bank overdrafts at beginning of year                           105.6          24.6
Net cash, cash equivalents and bank overdrafts at end of year                                     -         105.6

8.2 Maitland Vinegar
As on 1 October 2015, all conditions precedent for the disposal of the Group's interest in Maitland Vinegar Works (Pty) Ltd were met. Consequently, the assets and liabilities related to Maitland Vinegar 
have been presented as a "disposal group held for sale" in terms of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations for the year ended 30 September 2015.

As the proceeds received were in excess of the carrying amount of the disposal group, no impairment was required. Maitland Vinegar is presented within the Groceries: Cereals and other segment.


                                                                      Audited
                                                                 30 September
                                                                        2015
                                                                         R'm
Assets of the disposal group classified as held for sale:
Property, plant and equipment                                           42.7
Intangible assets                                                        0.6
Inventories                                                             12.5
Trade and other receivables                                             20.2
Current income tax                                                       0.2
Cash and cash equivalents                                               11.9
                                                                        88.1
Liabilities of the disposal group classified as held for sale:
Deferred income tax                                                      4.8
Trade and other payables                                                20.8
                                                                        25.6

Non-controlling interest                                                12.4

9. Fair value measurement
The information below analyses assets and liabilities that are carried at fair value at each reporting period, by level of hierarchy as required by IFRS 7 and IFRS 13.

                                                                       Audited fair value measurements at 30 September 2015 using:
 
                                                                        Quoted prices in         Significant                
                                                                      active markets for               other           Significant  
                                                                    identical assets and          observable          unobservable                       
                                                                             liabilities               input                 input                                   
                                                                               (Level 1)           (Level 2)              (Level 3)
                                                                                    R'm                 R'm                    R'm 
Assets measured at fair value
Available-for-sale financial assets   
- Listed securities                                                               141.6                   -                      -
- Unlisted securities                                                                 -                 0.2                      -
Derivative financial instruments
- Foreign exchange contracts                                                          -                20.4                      -
- Futures - fair value hedges                                                         -                 0.2                      -
Biological assets
- Vineyards                                                                           -                   -                   16.0
                                                        
Liabilities measured at fair value 
Derivative financial instruments
- Foreign exchange contracts                                                          -                15.1                      -
- Embedded derivative                                                                 -                 0.7                      -

                                                                        Audited fair value measurements at 30 September 2014 using:

                                                                        Quoted prices in        Significant  
                                                                      active markets for              other             Significant
                                                                    identical assets and         observable            unobservable
                                                                             liabilities              input                   input      
                                                                                (Level 1)          (Level 2)               (Level 3)                     
                                                                                     R'm                R'm                     R'm
Assets measured at fair value
Available-for-sale financial assets
- Listed securities                                                                 68.6                  -                       -
- Unlisted securities                                                                  -                1.4                       -
Derivative financial instruments
- Foreign exchange contracts                                                           -               14.3                       -
- Embedded derivative                                                                  -                0.7                       -
Biological assets
- Vineyards                                                                            -                  -                    16.0
Assets of disposal group classified as held for sale                                   -                  -                 2 066.8

Liabilities measured at fair value
Derivative financial instruments
- Foreign exchange contracts                                                           -                9.7                       -
Liabilities of disposal group classified as held for sale                              -                  -                   568.1
Dividend in specie - unbundling of Quantum Foods                                       -                  -                 1 242.2

There have been no transfers between level one, two or three during the period, nor were there any significant changes to the valuation techniques and input used to determine fair values.

Financial assets and liabilities
The fair values of financial instruments traded in active markets (such as publicly traded derivatives and available-for-sale securities) are based on quoted market prices at the reporting date. A market is regarded as active if quoted
prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
The quoted market price used for financial assets held by the Group is the current bid price. The appropriate quoted market price for financial liabilities is the current ask price. These instruments are included in level 1. Instruments 
included in level 1 comprise primarily JSE-listed equity investments classified as available-for-sale.

The fair values of financial instruments that are not traded in an active market are determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument were observable, the instrument is included in level 2.

The Group uses a variety of methods that makes assumptions that are based on market conditions existing at the reporting date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments. Other
techniques, such as estimated discounted cash flows, are used to determine the fair value of the remaining financial instruments. The fair value of foreign exchange contracts is determined using quoted forward exchange rates at the
reporting date.

The carrying amounts of cash, trade and other receivables less provision for impairment, trade and other payables and short-term borrowings are assumed to approximate their fair values due to the short term until maturity of these
assets and liabilities.

The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The
fair values of long-term investments and long-term borrowings are not materially different from the carrying amounts.

Biological assets
The fair value of vineyards is calculated as the future expected net cash flows from the asset, discounted at a current market-determined rate, over the remaining useful lives of the vineyards.

Assets and liabilities of disposal group classified as held for sale
The assets and liabilities related to the Quantum Foods segment have been presented as an "asset held for sale" and as "discontinued operations" in terms of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations for the
year ended 30 September 2014. Refer to note 8 for further detail.

In terms of IFRS 5, an entity shall measure a non-current disposal group classified as held for sale at the lower of its carrying amount and fair value less costs to sell. The fair value less costs to sell was determined using the
average results of an income valuation approach and different scenarios for a market valuation approach.

In terms of the income approach, the discounted cash flow method is used to determine the present value of projected future cash flows for a cash-generating unit ("CGU") using a rate of return that is commensurate with the risk
associated with the business and the time value of money. This approach requires assumptions about revenue growth rates, operating margins, tax rates and discount rates. The assumptions regarding growth are based on the CGUs' internal
forecasts for revenue, operating margins and cash flows for a period of five years and by application of a perpetual long-term growth rate thereafter. Past experience, economic trends as well as market and industry trends were taken
into consideration. The discount rate used to arrive at the present value of future cash flows represents the weighted average cost of capital ("WACC") for comparable companies operating in similar industries as the applicable CGU,
based on publicly available information. The WACC is an estimate of the overall required rate of return on an investment for both debt and equity owners. Its determination requires separate analysis of the cost of equity and debt and
considers a risk premium based on an assessment of risks related to the projected cash flows of the CGU.

The South African businesses consist of a number of CGUs. Bokomo Uganda (Pty) Ltd and Quantum Foods Zambia (Pty) Ltd are two separate CGUs. The market approach assumes that companies operating in the same industry will share similar
characteristics and that company values will correlate to these characteristics. The publicly available financial information of similar listed entities have been used to estimate two scenarios of fair value based on EBITDA multiples
of these benchmark entities.

The key assumptions used in performing the impairment tests, by CGU, were as follows:

                       30 September 2014
Discount rate
South Africa                       17.4%
Uganda                             27.1%
Zambia                             25.1%
Perpetual growth rate
South Africa                        5.5%
Uganda                              5.5%
Zambia                              6.5%
Income tax rate
South Africa                       28.0%
Uganda                             30.0%
Zambia                             12.5%

10. Restatement of financial information for comparative periods
Segment revenue and segment results were restated to:
- Reflect the operations of all exports, other than to Botswana, Namibia, Lesotho and Swaziland, as well as the operations of all foreign operations to a new segment, International; and
- Allocate corporate results to the operating segments, except for the B-BBEE Phase I share-based payment charge, the results of the legal entities for the ultimate holding company 
and the insurance captive, corporate legal costs, costs relating to BEE socio-economic and enterprise development and mergers and acquisitions.

                                                                                 Audited
                                                                              Year ended
                                                                            30 September
                                                                                    2014
                                                                                     R'm
(Decrease)/increase in revenue
Essential Foods                                                                   (275.6)
Groceries: Cereals and other (formerly Bokomo Foods)                            (1 366.5)
Groceries: Beverages (formerly Ceres Beverages)                                   (929.5)
International                                                                    2 273.6
Internal revenue reallocated to segments                                           298.0
Total                                                                                -

(Decrease)/increase in operating profit before items of a capital nature
Essential Foods                                                                    (99.4)
Groceries: Cereals and other (formerly Bokomo Foods)                              (186.0)
Groceries: Beverages (formerly Ceres Beverages)                                   (204.0)
International                                                                      363.4
Other                                                                              126.0
Total                                                                                -


11. Preparation of financial statements
These summary consolidated financial statements have been prepared under the supervision of CJ Hess, CA(SA), Group financial director.

12. Audit
The external auditors, PricewaterhouseCoopers Inc., have audited the Group's financial statements for the year ended 30 September 2015 and their unqualified auditor's report is available for inspection at the registered office of the
Company.

The Group's auditors have not reviewed nor reported on any of the comments relating to prospects.

Directors
ZL Combi (Chairman), PM Roux (CEO)*, CJ Hess*, N Celliers, MM du Toit, Prof ASM Karaan, NS Mjoli-Mncube, G Pretorius, LP Retief, AH Sangqu (* Executive)

Company secretary
J Jacobs
E-mail: Jay-Ann.Jacobs@pioneerfoods.co.za

Registered address
Glacier Place, 1 Sportica Crescent, Tyger Valley, 7530, South Africa
Tel: 021 974 4000 Fax: 086 407 0044
E-mail: info@pioneerfoods.co.za

Transfer secretaries
Computershare Investor Services (Pty) Ltd, PO Box 61051, Marshalltown, 2107, South Africa
Tel: 011 370 5000 Fax: 011 688 5209

Sponsor
PSG Capital (Pty) Ltd, PO Box 7403, Stellenbosch, 7599, South Africa
Tel: 021 887 9602 Fax: 021 887 9624

Date: 24/11/2015 07:05:00 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.

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