How we did

Financial capital

Domestic business delivers a strong performance in a tough trading environment with operating margins

up to 15,6%
(2016: 14,1%)

Group operating income** up 11% to

R4,6 billion
(2016: 4,2 billion)

Group operating** margin up 110 basis points to

14,8%
(2016: 13,7%)

Cash from operations up 43%

R6,1 billion benefiting from working capital improvements
(2016: 4,2 billion)

HEPS* up 2% to 2 155 cents
(2016: 2 119 cents)
* From continuing operations
** From continuing operations, before impairments and abnormal items

Our measures of success

 Met Partially met Not met  
Key performance indicator Five-year target (2021) FY17   FY16
restated†#		 Progress  
Net sales (R billion) Category growth +1 – 2% pa 31,3   30,6  
Gross margin +150 – 180bps* 33,4%   31,8%  
Marketing investment (% of net sales) +100 – 160bps 2,5%   2,5%  
Operating margin (before IFRS 2 charges) +100 – 160bps 14,8%   13,7%  
Return on net assets >35% 35,3%   30,4%  

* bps – basis points.

† Restated for early adoption of IFRS 15 Revenue from Contracts with Customers. Refer note 6 in the condensed consolidated financial statements.

# Restated as required by IFRS 5 for treatment of East Africa Tiger Brands Industries plc and Haco Tiger Brands Limited as discontinued operations.

Human capital

Natural capital

Invested in our people R57 million (2016: R67 million)

Water use intensity 2,12kℓ/ton (2016: 2,32kℓ/ton)

Intellectual capital

Manufactured capital

Innovation as % of revenue 4,3% (2016: 4,5%)

Invested in facilities R919 million (2016: R945 million)

Social capital

Social capital

Invested in communities R35 million (2016: R23 million)

Beneficiaries reached 104 000 (2016: 101 000)