Wrap Text
Interim report
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1906/000622/06)
Share Code: ILV
ISIN: ZAE000083846
("Illovo" or "the Company")
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015
Salient Features
- Challenging commercial environment – sustained pressure on export sugar prices
- Group sugar production down 10% due to drought in South Africa
- Operating profit decreased 37% and headline earnings per share down 58%
- Diversification strategy rationale positively underscored by growth in downstream profits
- Regional sales volumes increased-diversion away from the EU
- Record ethanol production and electricity co-generation expected
Quote:
Gavin Dalgleish, Managing Director, commented:
"The business challenges of regional drought, sustained pressure on export sugar prices and
reduced demand for sugar in Malawi continue to weigh on the business performance.
Nonetheless the downstream business delivered a strong operational and financial
performance, while the group continued to improve the sales mix away from the EU by
growing regional sales volumes in key markets. Cost-reduction, efficiency improvement and
the culture of doing more with less has become further embedded in the business.
Recent forecasts suggest that the global sugar balance will move towards a production deficit
in the current year which, together with speculation in the market, has contributed to a recent
recovery in world market prices off seven year lows. Initiatives to improve the sales mix and to
develop regional markets will benefit the full year earnings, whilst structural cost reduction
programmes will continue to build on the good results achieved to date".
Enquiries:
Illovo Sugar Limited 031 508 4300
Gavin Dalgleish, Managing Director,
Mohammed Abdool-Samad, Financial Director,
Chris Fitz-Gerald, Group Communications Manager
Instinctif 011 447 3030
Nicholas Williams 082 600 2192
Overview
The Illovo group has encountered a number of challenges during the six month period ended
30 September 2015, particularly regional drought conditions, reduced demand for sugar in
Malawi and sustained pressure on export sugar prices.
Despite these difficult conditions, the downstream business delivered strong operational and
financial performance, while the group continued to grow regional sales volumes by expanding
access to key markets. Cost-reduction and efficiency improvement benefits were realised as
the continuous improvement culture becomes further embedded within the business.
The tough commercial environment and a change in the timing of sales reduced revenue by
7% to R5 489 million and weighed on the operating margin, which fell from 23.5% to 16.1%.
Operating profit decreased by 36.7% to R881 million while headline earnings per share
declined by 58.1% to 71.7 cents. The contribution to operating profit by country was: Malawi
27% (2014: 41%), Swaziland 24% (2014: 9%), Zambia 23% (2014: 31%), Tanzania 12%
(2014: –1%), South Africa 10% (2014: 12%) and Mozambique 4% (2014: 8%). By activity, the
contribution to operating profit was: sugar production 50% (2014: 50%), cane growing 32%
(2014: 41%) and downstream 18% (2014: 9%).
Review
Lower than normal rainfall has persisted across the Southern African region, impacting major
river, dam and lake levels in Swaziland, Zambia, Malawi and South Africa. These stressed
growing conditions have not only reduced yields but also increased vulnerability to pest and
disease such as yellow aphids. In South Africa, the drought has reduced the total cane supply
to the group's factories by 20% on a comparable year-on-year basis. Flood damage suffered
in Mozambique during January 2015 further decreased late season cane supply.
Due mainly to these adverse weather conditions, sugar production for the period decreased
from 1.28 million tons to 1.16 million tons. Factory performances in Zambia, Tanzania and
Swaziland have been positive.
World sugar prices reached seven year lows during August 2015 which in turn impacted
regional prices. While the decline in EU market prices appeared to level off during the period
under review, the weaker Euro continued to impact on profitability.
Strong domestic and regional markets remain fundamental to the business. Good progress
was made on initiatives to grow these markets, with regional sales reflecting steady growth
compared to the prior period.
Demand in Zambia continued to grow and Swaziland benefited from increased sales into
SADC. Market conditions in Tanzania continued to improve as stricter enforcement of
regulation reduced illegal sugar imports whilst the announcement of a new import tariff
structure in Mozambique bodes well for future sales. The strong Malawian Kwacha impacted
on informal regional trade flows resulting in an inflow of sugar to compete against local
production.
Contribution to operating profits from downstream activities continues to grow. All three
alcohol production units in South Africa and Tanzania performed well, whilst good furfural
production efficiencies were achieved at the Sezela facility in South Africa. Electrical co-
generation exports into the national grid from our Ubombo mill in Swaziland increased by 28%.
During September 2015, a decision was made to close the furfural-based nematicide business
in the United States of America (US) following protracted difficulties in obtaining registration
with the US Environmental Protection Agency for application of the product on food crops. A
loss of R216 million was recorded on the closure of the business.
While the conversion of operating profit to cash remains strong, the impact of reduced sales
volumes and lower demand from customers has increased working capital requirements. The
higher funding requirements, compounded by considerable increases in interest rates and
currency volatility in Malawi and Zambia, increased financing costs by R85 million.
Owing to the weather-related crop decline, difficult commercial environment, increased
working capital levels and committed capital expenditure, an interim capital distribution has not
been declared. A distribution will be considered in May 2016 for the year ended
31 March 2016.
Outlook
Whilst volatile currency fluctuations will continue to challenge sugar market conditions, the
recent recovery in world market prices is encouraging. Initiatives to improve the sales mix and
to develop regional markets will benefit the full year earnings. Conditions in the Malawi
domestic market will continue to be challenging over the next six months.
With the exception of Tanzania, where the excellent agricultural and factory performance is
expected to produce improved results for the season, the persistent dry weather conditions
across the region will result in total group sugar production ending approximately 10% below
that of the prior year.
A recovery in sugar production during the 2016/17 season is expected, but will be limited by
the continuation of the drought in South Africa and is dependent on a return to normal summer
rainfall levels across the other Southern African operations. The Zambian refinery expansion
and product alignment project remain within budget and on schedule for commissioning early
in the 2016/17 season.
Growth in downstream earnings is anticipated with record ethanol production and electricity
co-generation assisted by the benefit of a strong US Dollar on pricing. In line with our
diversification strategy, two further downstream investment projects are under review.
Structural cost reduction programmes will continue to build on the good results achieved by
the group-wide continuous improvement programme and are expected to bring meaningful
benefits to the group in the short to medium-term.
As advised previously, it is expected that headline earnings per share for the year ending
31 March 2016 will be between 25% and 45% below the prior year. Due to the loss on the closure
of the furfural-based nematicide business, earnings per share will reflect a decline of between
50% and 70% compared to the year ended 31 March 2015.
While this interim reporting period has been extremely difficult on a number of fronts, the
consistent on-going growth in world and African sugar consumption, the expectation of a
global production deficit, shift in sales mix away from the EU and operational efficiency
improvements signal improved medium-term prospects.
CHANGE OF DIRECTORS
In terms of paragraph 3.59 of the JSE Listings Requirements, shareholders are advised that:
- Mr G Gomwe was appointed as an independent non-executive director of the Company
with effect from 1 June 2015;
- With effect from the close of the annual general meeting of the Company on 15 July 2015:
- Mr D G MacLeod retired as an independent non-executive director and
chairman of the Company and Mr TS Munday was appointed as Chairman in
his stead;
- Prof PM Madi resigned as an independent non-executive director and
Dr S Kana was appointed as an independent non-executive director of the
Company.
On behalf of the Board
TS Munday GB Dalgleish Mount Edgecombe
Chairman Managing Director 30 November 2015
CORPORATE INFORMATION
Directors:
TS Munday (Chairman)*; GB Dalgleish (Managing Director); MH Abdool-Samad; MI Carr#*;
J Cowper#*; G Gomwe^*; MJ Hankinson*; JP Hulley; S Kana*; D Konar*; PA Lister#*;
CW Molope*; AR Mpungwe (Tanzanian)*; L W Riddle.
# British
^ Zimbabwean
* 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.co.za
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.
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 30 September 2015
Unaudited Audited
Six months ended Year ended
30 September 31 March
2015 2014 Change 2015
Notes Rm Rm % Rm
Revenue 5 489.1 5 932.1 (7) 13 266.5
Operating profit 881.4 1 392.5 (37) 1 655.1
Dividend income - - 2.8
Net financing costs 2 (227.5) (142.4) (355.8)
Profit before non-trading
items 653.9 1 250.1 1 302.1
Share of profit from joint venture 2.7 2.6 4.6
Share of (loss)/profit from
associates (5.4) 9.7 22.1
Material items - (loss)/gain 3 (201.2) 1.5 3.0
Profit before taxation 450.0 1 263.9 (64) 1 331.8
Taxation (216.1) (319.6) (388.0)
Profit for the period 233.9 944.3 943.8
Attributable to:
Shareholders of Illovo Sugar Limited 141.8 789.0 (82) 826.4
Non-controlling interest 92.1 155.3 117.4
233.9 944.3 943.8
Other comprehensive income
Items that will not be
reclassified to profit or
loss in subsequent periods,
net of tax:
Remeasurement of defined
benefit obligations 0.1 0.4 29.8
Items that may be reclassified
to profit or loss in subsequent
periods, net of tax:
Cash flow hedges (53.8) 86.4 (11.4)
Hedge of net investment in
foreign subsidiaries (607.2) 130.2 (14.4)
Foreign currency translation
differences (829.8) 100.5 (408.9)
Total comprehensive
(loss)/income for the
period (1 256.8) 1 261.8 538.9
Attributable to:
Shareholders of Illovo Sugar
Limited (1 137.5) 1 037.4 431.1
Non-controlling interest (119.3) 224.4 107.8
(1 256.8) 1 261.8 538.9
Headline earnings per share 4
(cents)
Basic 71.7 171.1 (58) 179.0
Diluted 71.7 171.0 179.0
Earnings per share (cents)
Basic 30.8 171.3 (82) 179.4
Diluted 30.8 171.2 179.4
Distribution per share (cents) 5 - 37.0 (100) 90.0
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
as at 30 September 2015
Unaudited Audited
Six months ended Year ended
30 September 31 March
2015 2014 2015
Rm Rm Rm
ASSETS
Non-current assets 8 652.8 9 350.5 9 472.9
Property, plant and equipment 6 556.2 7 023.3 7 043.3
Cane roots 1 668.7 1 718.0 1 776.4
Intangible assets 103.5 305.0 311.9
Investment in joint venture 0.7 0.7 0.7
Investment in associates 69.8 72.7 73.5
Investments 75.7 30.8 74.7
Loans 128.2 160.6 163.9
Deferred taxation asset 50.0 39.4 28.5
Current assets 7 309.7 7 858.3 5 353.6
Inventories 3 868.2 3 709.0 1 022.6
Growing cane 1 277.8 1 709.4 1 797.2
Trade and other receivables 1 806.8 1 672.1 1 660.9
Factory overhaul costs 127.6 141.8 372.0
Derivative financial instruments 20.8 62.4 24.4
Cash and cash equivalents 208.5 563.6 476.5
Total assets 15 962.5 17 208.8 14 826.5
EQUITY AND LIABILITIES
Equity attributable to shareholders of
Illovo Sugar Limited 5 086.6 7 193.6 6 472.4
Share capital and premium 1 196.1 1 610.7 1 440.2
Share-based payment reserve 3.0 13.1 7.2
Other reserves (76.1) 75.0 (3.9)
Retained earnings 3 963.6 5 494.8 5 028.9
Non-controlling interest 1 058.6 1 366.7 1 203.3
Total equity 6 145.2 8 560.3 7 675.7
Non-current liabilities 4 015.9 3 590.0 3 754.4
Long-term borrowings 2 468.0 1 960.3 2 042.9
Deferred taxation liability 1 254.6 1 312.7 1 412.6
Deferred income 96.7 113.8 101.8
Provisions 196.6 203.2 197.1
Current liabilities 5 801.4 5 058.5 3 396.4
Short-term borrowings 2 782.6 2 131.4 1 164.6
Trade and other payables 2 767.2 2 691.2 2 042.5
Taxation 88.7 180.7 64.9
Provisions 31.6 48.9 43.3
Derivative financial instruments 131.3 6.3 81.1
Total liabilities 9 817.3 8 648.5 7 150.8
Total equity and liabilities 15 962.5 17 208.8 14 826.5
SALIENT FEATURES
Unaudited Audited
Six months ended Year ended
30 September 31 March
2015 2014 2015
Notes Rm Rm Rm
Operating margin (%) 16.1 23.5 12.5
Interest cover (times) a 3.9 9.8 4.7
Effective tax rate (%) 33.0 25.6 29.8
Net asset value per share (cents) 1 333.8 1 858.1 1 666.1
Net debt: equity ratio b 82.0 41.2 35.6
Gearing (%) c 45.1 29.2 26.2
Net borrowings 5 042.1 3 528.1 2 731.0
Depreciation 218.9 203.9 336.8
Capital expenditure
Replacement of property, plant and
equipment 165.8 137.4 365.6
Expansion of property, plant and
equipment 472.9 112.9 318.3
Property, plant and equipment 638.7 250.3 683.9
Expansion of area under cane 7.1 0.7 5.7
Product registration costs 4.0 5.8 9.9
649.8 256.8 699.5
Capital commitment
Contracted 534.3 439.7 326.9
Approved but not contracted 816.2 537.6 1 541.5
1 350.5 977.3 1 868.4
Lease commitments 181.4 261.4 189.3
Contingent liabilities 143.2 119.0 155.9
NOTES
a.) Interest cover
Operating profit divided by net financing costs.
b.) Net debt: equity ratio
Interest-bearing liabilities (net of cash and cash equivalents) divided by total equity.
A negative net debt: equity ratio indicates that the group is in a net cash position.
c.) Gearing
Interest-bearing liabilities (net of cash and cash equivalents) expressed as a percentage
of total equity and interest-bearing liabilities (net of cash and cash equivalents).
A negative gearing ratio indicates that the group is in a net cash position.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2015
Share-
Share- holders of
Share based Illovo Non-
capital and payments Other Retained Sugar controlling Total
premium reserve reserves earnings Limited interest equity
Rm Rm Rm Rm Rm Rm Rm
Balance at 31 March 2014 (audited) 1 886.3 13.1 5.8 4 435.1 6 340.3 1 128.3 7 468.6
Total comprehensive income for the
period - - 245.6 791.8 1 037.4 224.4 1 261.8
Profit for the period 789.0 789.0 155.3 944.3
Remeasurement of defined benefit
obligations 2.8 2.8 (2.4) 0.4
Cash flow hedges 69.2 69.2 17.2 86.4
Hedge of net investment in foreign
subsidiaries 129.9 129.9 0.3 130.2
Foreign currency translation differences 46.5 46.5 54.0 100.5
Issue of share capital 0.8 0.8 0.8
Distributions paid (276.4) (276.4) (83.5) (359.9)
Gain on part-disposal of shareholding in
subsidiary 91.5 91.5 97.5 189.0
Transfer of foreign currency translation
reserve (176.4) 176.4 - -
Balance at 30 September 2014
(unaudited) 1 610.7 13.1 75.0 5 494.8 7 193.6 1 366.7 8 560.3
Total comprehensive income for the
period - - (672.1) 65.8 (606.3) (116.6) (722.9)
Profit for the period 37.4 37.4 (37.9) (0.5)
Remeasurement of defined benefit
obligations 28.4 28.4 1.0 29.4
Cash flow hedges (78.9) (78.9) (18.9) (97.8)
Hedge of net investment in foreign
subsidiaries (141.8) (141.8) (2.8) (144.6)
Foreign currency translation differences (451.4) (451.4) (58.0) (509.4)
Distributions paid (170.5) (170.5) (45.5) (216.0)
Gain on part-disposal of shareholding in
subsidiary 1.6 1.6 (1.3) 0.3
Gain on liquidation of subsidiary 59.9 59.9 - 59.9
Purchase of shares (forfeitable share plan) (5.9) (5.9) (5.9)
Transfer of foreign currency translation
reserve 593.2 (593.2) - -
Balance at 31 March 2015 (audited) 1 440.2 7.2 (3.9) 5 028.9 6 472.4 1 203.3 7 675.7
Total comprehensive income for the
period - - (1 279.4) 141.9 (1 137.5) (119.3) (1 256.8)
Profit for the period 141.8 141.8 92.1 233.9
Remeasurement of defined benefit
obligations 0.1 0.1 - 0.1
Cash flow hedges (35.1) (35.1) (18.7) (53.8)
Hedge of net investment in foreign
subsidiaries (600.0) (600.0) (7.2) (607.2)
Foreign currency translation differences (644.3) (644.3) (185.5) (829.8)
Distributions paid (244.1) (244.1) (25.4) (269.5)
Purchase of shares (forfeitable share plan) (5.1) (5.1) (5.1)
Share-based payments charge 0.9 0.9 0.9
Transfer of other reserves (37.1) 37.1 - -
Transfer of foreign currency translation
reserve 1 244.3 (1 244.3) - -
Balance at 30 September 2015 (unaudited) 1 196.1 3.0 (76.1) 3 963.6 5 086.6 1 058.6 6 145.2
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 September
Unaudited Audited
Six months ended Year ended
30 September 31 March
2015 2014 2015
Notes Rm Rm Rm
Cash flows from operating activities
Cash operating profit 6 1 235.8 1 528.9 1 663.7
Working capital movements 7 (2 486.3) (2 137.5) (314.1)
Cash (utilised by)/generated from operations (1 250.5) (608.6) 1 349.6
Net financing costs (227.5) (142.4) (355.8)
Taxation paid (90.2) (160.2) (252.7)
Dividend income - - 2.8
Distributions paid (269.5) (359.9) (575.9)
Net cash (outflows)/inflows from operating activities (1 837.7) (1 271.1) 168.0
Cash flows from investing activities
Replacement of property, plant and equipment (165.8) (137.4) (365.6)
Expansion of property, plant and equipment (472.9) (112.9) (318.3)
Expansion of area under cane (7.1) (0.7) (5.7)
Capitalisation of product registration costs (4.0) (5.8) (9.9)
Proceeds on disposal of property 17.0 1.5 3.1
Proceeds on disposal of plant and equipment 1.7 1.8 6.5
Movement on investments and loans 32.5 (27.6) 21.5
Acquisition of business 8 (34.9) - -
Net cash outflows from investing activities (633.5) (281.1) (668.4)
Net cash outflows before financing activities (2 471.2) (1 552.2) (500.4)
Cash flows from financing activities
Long-term borrowings raised/(repaid) 361.1 (10.6) (79.6)
Short-term borrowings raised 1 871.2 1 317.1 276.2
Issue of share capital - 0.8 0.8
Purchase of shares in terms of forfeitable share plan (5.1) - (5.9)
Proceeds on part-disposal of shareholding in subsidiary - 195.6 189.3
Net cash inflows from financing activities 2 227.2 1 502.9 380.8
Net decrease in cash and cash equivalents (244.0) (49.3) (119.6)
Cash and cash equivalents at the beginning of the period 476.5 597.1 597.1
Exchange rate translation (24.0) 15.8 (1.0)
Cash and cash equivalents at the end of the period 208.5 563.6 476.5
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial statements for the six months ended 30 September 2015 have
been prepared and presented in accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards ("IFRS"), the SAICA Financial Reporting Guides as issued
by the Accounting Practices Committee, the Financial Reporting Pronouncements as issued by the Financial Reporting
Standards Council, the Listing Requirements of the JSE Limited, the information as required by IAS 34: Interim Financial
Reporting, and the requirements of the South African Companies Act No 71 of 2008. The accounting policies applied in
preparation of these condensed consolidated interim financial statements are in terms of IFRS and are consistent with
those applied in the previous annual financial statements. The interim financial statements have been prepared under the
supervision of the group financial director, Mr M H Abdool-Samad, CA(SA) and have not been audited by the group's
external auditors.
Unaudited
Six Audited
months Year ended
ended 31 March
30 September
2015 2014 2015
Rm Rm Rm
2. NET FINANCING COST
Interest paid 190.8 149.5 362.9
Less: capitalised to property, plant and
equipment (19.3) (1.2) (4.0)
171.5 148.3 358.9
Interest received (4.7) (4.5) (13.4)
Foreign exchange losses/(gains) 60.7 (1.4) 10.3
227.5 142.4 355.8
3. MATERIAL ITEM
Loss on closure of business (216.3) - -
Net proceeds received from
insurance claim 15.1 - -
Profit on disposal of property - 1.5 3.0
(201.2) 1.5 3.0
On 17 September 2015, a decision was made to close the furfural-based nematicide business in the United States of
America (US) following difficulties in obtaining registration with the US Environmental Protection Agency for application
on food crops. A loss of R216.3 million has been determined as at 30 September 2015 based on the directors' best
estimate of the costs of closure.
4. DETERMINATION OF HEADLINE EARNINGS
Profit attributable to shareholders 141.8 789.0 826.4
Adjusted for:
Loss on closure of business 216.3 - -
Net proceeds received from insurance
claim (15.1) - -
Profit on disposal of property - (1.5) (3.0)
Total tax effect of adjustments 27.2 - -
Total non-controlling interest effect of
adjustments (39.7) 0.6 1.2
Headline earnings 330.5 788.1 824.6
Number of shares (millions)
Issued 460.7 460.7 460.7
Weighted average 460.7 460.7 460.7
Diluted weighted average 460.7 460.7 460.7
Headline earnings per share (cents)
Basic 71.7 171.1 179.0
Diluted 71.7 171.0 179.0
Unaudited
Six months Audited
ended Year ended
30 September 31 March
2015 2014 2015
Rm Rm Rm
5. DISTRIBUTION PER SHARE
Owing to the weather related crop decline, difficult commercial environment, increased working capital levels and committed
capital expenditure, the directors have not declared an interim capital distribution (2014: 37.0 cents per share). A distribution
will be considered in May 2016 for year ended 31 March 2016.
6. CASH OPERATING PROFIT
Operating profit 881.4 1 392.5 1 655.1
Material items (201.2) 1.5 3.0
680.2 1 394.0 1 658.1
Add back:
Depreciation 218.9 203.9 336.8
Amortisation of intangible assets 8.4 2.7 5.6
Amortisation of deferred income (5.0) - (10.0)
Change in fair value of cane roots (123.0) (111.0) (208.6)
Change in fair value of growing cane 253.7 37.4 (111.6)
Loss on closure of business 216.3 - -
Profit on disposal of property (15.1) (1.5) (3.0)
Loss/(profit) on disposal of plant and equipment 0.5 3.4 (3.6)
Share-based payments charge 0.9 - -
1 235.8 1 528.9 1 663.7
7. WORKING CAPITAL MOVEMENTS
Inventories (3 299.9) (2 629.0) (14.9)
Trade and other receivables (356.0) (316.1) (311.0)
Factory overhaul costs 226.2 202.6 (32.2)
Trade and other payables 943.4 605.0 44.0
(2 486.3) (2 137.5) (314.1)
8. ACQUISITION OF BUSINESS
On 1 April 2015, the group acquired the business of Kilombero Sugar Distributors Limited ("KSD"), a company in which
the group holds a 20% investment. KSD held the exclusive right to market and distribute the group's sugar production in
Tanzania. The group acquired the business to allow it direct access to existing customers in Tanzania as well as to exert
increased influence over the marketing and distribution decisions. KSD will be liquidated in due course. From the date of
acquisition, the business acquired from KSD has contributed R3.9 million to net profit before taxation.
The fair values of the identifiable assets of KSD as at the date of acquisition were:
Intangible assets
34.9 - -
Purchase consideration paid
34.9 - -
9. FINANCIAL INSTRUMENTS
The fair values of financial instruments are determined using inputs that are observable, either directly, (i.e. as prices) or
indirectly (i.e. derived from prices), other than quoted prices in an active market and therefore fall into the level 2 fair value
category. The fair values of non-financial assets are determined using inputs that are unobservable, using the best
information available in the circumstances for using the assets and therefore fall into the level 3 fair value category. This
report does not include the information required by paragraph 16A(j) of IAS 34: Interim Financial Reporting.
Unaudited Audited
Six months ended Year ended
30 September 31 March
2015 2014 2015
Rm % Rm % Rm
10. SEGMENT INFORMATION
Business segments
Revenue
Sugar production 2 773.2 50 3 267.8 55 9 242.3
Cane growing 2 125.3 39 2 109.1 36 2 848.3
Downstream and co-generation 590.6 11 555.2 9 1 175.9
5 489.1 5 932.1 13 266.5
Operating profit
Sugar production 437.0 50 691.9 50 1 179.8
Cane growing 285.1 32 570.3 41 207.4
Downstream and co-generation 159.3 18 130.3 9 267.9
881.4 1 392.5 1 655.1
Geographic segments
Revenue
Malawi 1 052.9 18 1 175.0 20 2 362.7
Mozambique 383.2 7 454.4 8 593.3
South Africa 1 357.5 25 1 465.0 25 4 481.6
Swaziland 1 018.6 19 897.9 15 1 396.5
Tanzania 479.4 9 500.3 8 1 247.4
Zambia 1 197.5 22 1 439.5 24 3 185.0
5 489.1 5 932.1 13 266.5
Operating profit
Malawi 239.7 27 559.5 41 625.3
Mozambique 34.6 4 109.8 8 24.6
South Africa 86.4 10 170.2 12 215.2
Swaziland 210.5 24 123.8 9 68.7
Tanzania 106.1 12 (8.5) (1) 145.0
Zambia 204.1 23 437.7 31 576.3
881.4 1 392.5 1 655.1
Total assets
Malawi 3 259.0 20 2 934.2 18 2 878.7
Mozambique 883.5 6 1 005.0 6 944.7
South Africa 4 331.0 28 4 290.9 26 2 857.6
Swaziland 2 126.4 14 2 043.1 12 2 033.2
Tanzania 1 645.9 10 1 675.5 10 1 598.8
Zambia 3 437.4 22 4 594.7 28 3 984.1
15 683.2 16 543.4 14 297.1
Note: Total assets exclude cash and cash equivalents, deferred taxation and derivative financial instruments.
11. POST BALANCE SHEET EVENTS
No material change has taken place in the affairs of the group between 30 September 2015 and the date of
this report.
Date: 30/11/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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