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PERFORMANCE REVIEW
Reports to stakeholders
continued
32
Tiger Brands Limited Integrated Annual Report
2014
Consolidated income statement
The group achieved a solid result overall for
the financial year ended 30 September 2014.
Group turnover increased by 11% to R30,1
billion (2013: R27,0 billion), underpinned by
4% volume growth and pricing inflation of 5%.
The depreciation of the rand added an
additional 2% growth to turnover. Due to
internal efficiencies, reduced losses at DFM
and continued solid growth in the Exports and
International businesses, operating income
increased by 15% to R3,6 billion (2013:
R3,1 billion). This result was after accounting
for an IFRS 2 share option charge
of R105 million (2013: R134 million).
Profit before tax amounted to R2,7 billion
(2013: R3,2 billion) after net financing
costs of R403 million, associate income
of R597 million and abnormal charges of
R1,1 billion, reflecting a 17% decline on
the prior year. The abnormal charges largely
related to the impairments recognised in
relation to the group’s investment in DFM.
These include the R849 million impairment
of the entire goodwill and intangible assets
related to DFM and a R105 million specific
impairment of certain of its underlying assets.
The group also recognised further impairments
of R68 million relating to the Deli Foods
acquisition goodwill, as well as certain
non-core domestic trademarks. In addition,
certain domestic assets were derecognised,
having been deemed surplus to requirements
following a review of the group’s manufacturing
architecture.
Chief Financial Officer’s report
Funke Ighodaro
Chief Financial Officer
The group once again
demonstrated its strong
cash-generating capability,
improving operating cash
flows by 6% to R4,2 billion.