Notes
1. Basis of preparation and changes to the group’s accounting policies
The preparation of these results has been supervised by O Ighodaro, Chief Financial Officer of Tiger Brands Limited.
The condensed group interim consolidated financial statements for the six months ended 31 March 2015 have been prepared in accordance with IAS 34: Interim Financial Reporting as issued by the IASB, the South African Companies Act No 71 of 2008 and the Listing Requirements of the JSE Limited.
The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those applied in preparation of the group’s annual consolidated financial statements for the year ended 30 September 2014. The majority of the group’s financial instruments measured at fair value in terms of IFRS 13 are noted as level 1 hierarchy, which are valued based on quoted market prices.
2. Operating income before abnormal items
| R’million | Unaudited six months ended 31 March 2015 |
Unaudited six months ended 31 March 2014 |
Audited year ended 30 September 2014 |
|||
| Depreciation (included in cost of sales and other operating expenses) | (336,0) | (332,8) | (679,1) | |||
| Amortisation | (11,8) | (23,6) | (38,1) | |||
| IFRS 2 (included in other operating expenses) | ||||||
| – Equity settled | (39,2) | (23,5) | (61,0) | |||
| – Cash settled | 3,4 | 26,6 | (44,4) |
3. Abnormal items
| R’million | Unaudited six months ended 31 March 2015 |
Unaudited six months ended 31 March 2014 |
Audited year ended 30 September 2014 |
|||
| Impairment of intangible assets | (29,6) | (848,7) | (916,4) | |||
| Impairment of property, plant and equipment | (11,8) | – | (145,3) | |||
| Acquisition costs | – | (12,3) | (12,3) | |||
| Profit on disposal of property, plant, equipment and | ||||||
| intangible assets | – | 14,8 | 14,8 | |||
| Insurance claim income | – | 28,7 | 43,2 | |||
| Other | – | (18,2) | (39,5) | |||
| (41,4) | (835,7) | (1 055,5) |
4. Impairment
when circumstances indicate the carrying value may be impaired. The Group’s impairment tests are based on the value-in-use calculations. The key assumptions used to determine the recoverable amount for the different cash-generating units were disclosed in the annual consolidated financial statements for the year ended 30 September 2014. A specific impairment of R29,6 million was recognised at 31 March 2015 relating to an indefinite-life intangible asset within the HPCB business.
5. Reconciliation between profit for the year and headline earnings
| R’million | Unaudited six months ended 31 March 2015 |
Unaudited six months ended 31 March 2014 |
Audited year ended 30 September 2014 |
|||
| Continuing operations | ||||||
| Profit for the period attributable to owners of the parent | 1 339,4 | 602,0 | 1 990,3 | |||
| Profit on disposal of property, plant, equipment and intangible assets | (1,5) | (14,2) | (11,1) | |||
| Impairment of intangible assets | 29,6 | 801,7 | 869,4 | |||
| Impairment of property, plant and equipment | 8,3 | – | 78,2 | |||
| Write-off of other related assets | – | – | 1,5 | |||
| Insurance claim income | – | (20,7) | (31,1) | |||
| Headline earnings adjustment – Associates | ||||||
| – Profit on disposal of property, plant, equipment and intangible assets | (3,0) | (0,1) | (7,9) | |||
| 1 372,8 | 1 368,7 | 2 889,3 | ||||
| Tax effect of headline earnings adjustments | 2,9 | 16,9 | (52,9) | |||
| Attributable to non-controlling interest | – | 20,9 | (46,8) | |||
| Discontinued operation | ||||||
| Profit for the period attributable to owners of the parent | – | 29,9 | 29,9 | |||
| Profit on remeasurement to fair value on transfer of net assets to held-for-sale | – | (11,8) | (11,8) | |||
| – | 18,1 | 18,1 | ||||
| Attributable to non-controlling interest | – | 6,8 | 6,8 |
6. Analysis of profit from discontinued operation
| R’million | Unaudited six months ended 31 March 2015 |
Unaudited six months ended 31 March 2014 |
Audited year ended 30 September 2014 |
|||
| Turnover | – | 186,9 | 186,9 | |||
| Expenses | – | (156,1) | (156,1) | |||
| Operating income before abnormal items | – | 30,8 | 30,8 | |||
| Profit on remeasurement to fair value on transfer of net assets to held-for-sale | – | 18,6 | 18,6 | |||
| Operating income after abnormal items | – | 49,4 | 49,4 | |||
| Finance costs | – | (5,0) | (5,0) | |||
| Profit before taxation | – | 44,4 | 44,4 | |||
| Taxation | – | (3,4) | (3,4) | |||
| Profit for the period from discontinued operation | – | 41,0 | 41,0 | |||
| Attributable to non-controlling interest | – | (11,1) | (11,1) | |||
| Attributable to owners of parent | – | 29,9 | 29,9 | |||
| Cash flows from discontinued operation | ||||||
| Net cash outflows from operating activities | – | (23,9) | (23,9) | |||
| Net cash inflows from investing activities | – | 97,0 | 97,0 | |||
| Net cash outflows from financing activities | – | (72,2) | (72,2) | |||
| Net cash inflows | – | 0,9 | 0,9 |