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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
FINANCIAL DIRECTOR’S REPORT
Dean Suntup
Financial Director
“The increase in
headline earnings was
achieved through
organic growth in
the South African
Distribution segment,
assisted by the
acquisitions of Retail
Mobile Credit
Specialists Proprietary
Limited and Viamedia
Proprietary Limited.”
FINANCIAL REVIEW
Headline earnings per share increased by 21% to
82.26 cents, net of the Group’s share of losses of
R85 million in Blue Label Mexico which equated to
12.82 cents per share. The remaining businesses
within the Group contributed 95.08 cents to
headline earnings per share.
The growth in earnings was primarily attributable to
increases in revenue of 14%, gross profit of 22%
and EBITDA of 37%. Gross profit margins increased
from 6.96% to 7.46%. Organic growth was
achieved through the expansion of the Group’s
bouquet of offerings to its escalating multitude of
distribution channels.
Core earnings, which increased by 30% to
R597 million, represent the earnings of the
Group after adjusting for the amortisation
of intangible assets net of taxation and
non-controlling interests as a consequence
of purchase price allocations in terms of IFRS
3(R): Business Combinations. Core earnings
reflect the underlying financial performance of
the Group.
The statement of financial position remains
robust and liquid, with accumulated equity
increasing to R3.9 billion, net of accumulated
dividends paid to date totalling R704 million.
Net asset value equated to R5.79 per share.