TASTE HOLDINGS LIMITED - Further Trading Statement

Further Trading Statement

TASTE HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2000/002239/06)
Share code: TAS ISIN: ZAE000081162
(“Taste” or “the Company” or “the Group”)


FURTHER TRADING STATEMENT


In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement
as soon as they become reasonably certain that the financial results for the period to be reported on will
differ by more than 20% from that of the previous corresponding period.

Further to the trading statement released on SENS on 11 February 2016, Taste is currently finalising its
results for the year ended 29 February 2016 and the directors anticipate that:
-    the loss per share (excluding the core earnings adjustment detailed below) is expected to be between
     23.5 cents and 24.9 cents, compared to the earnings per share of 6.9 cents for the prior period; and

-    the headline loss per share (excluding the core earnings adjustment detailed below) is expected to be
     between 18.5 cents and 19.8 cents, compared to the headline earnings per share of 6.8 cents for the
     prior period.

Core Earnings

As with previous periods, the Group discloses core/normalised earnings. The Group uses this core earnings
measure to internally evaluate operating performance, to evaluate itself against its peers, and to determine
future performance targets and long-range planning. Additionally, Taste believes that stakeholders covering
the Company’s financial performance also utilise this measure. Taste will disclose this financial measure for
as long as it is relevant to stakeholders.

Anticipated core earnings range for the year ended 29 February 2016 are as follows:

                                   Food division            Luxury goods division                           Group

    Core EBITDA       -R3 million to -R6 million       R68 million to R71 million      R46 million to R49 million
                              (2015: R36 million)              (2015: R49 million)           (2015: R73.2 million)
   
    Core headline                                                                        R4 million to R6 million
    earnings                                                                                 (2015: R36.2 million)
    
    Core headline                                                                              1 cents to 2 cents
    earnings per                                                                                (2015: 16.1 cents)
    share

Core earnings exclude once-off costs and revenues; upfront costs relating to the launching of the Domino’s
brand in November 2014; the establishment of dough production and food distribution facilities (including the
temporary Domino’s ingredient subsidy as ingredient suppliers and specifications are localised, which
subsidy has now ended); and the conversion of the Scooters Pizza and St Elmo’s stores to Domino’s stores
in the 2016 financial year. It is anticipated that this adjustment in respect of Domino’s will not be material to
the Group for the year ending 28 February 2017.

With regards to launching and establishing the Starbucks brand in South Africa: as previously announced,
the Group incurred once off investment costs relating to initial training and travel; employment costs of a
dedicated Starbucks team well in advance of the first store opening: pre-opening marketing and market
research; and establishing IT and other infrastructure. As with Domino’s, these costs are excluded from core
earnings and it is anticipated that the exclusion from core earnings will not be material beyond the year
ending 28 February 2017.

The financial information on which this trading statement is based has not been reviewed or reported on by
Taste’s auditors. Taste's audited financial results are expected to be released on SENS on or about
25 May 2016.


Johannesburg
9 May 2016

Sponsor
Merchantec Capital

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