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BLUE LABEL INTEGRATED ANNUAL REPORT 2016
30
Financial Director’s report
Financial review
The momentum of growth in Group
earnings continued, resulting in core
headline earnings increasing by 21%
to R685 million. This equated to an
increase in headline earnings
per share from 82.26 cents to
100.35 cents. After adjusting for the
amortisation of intangible asset
write-offs, net of taxation and
non-controlling interests as a
consequence of purchase price
allocations, the resultant core headline
earnings per share increased by 21%
to 102.85 cents.
A strong underlying
performance
“The Group’s
performance was
primarily attributable
to organic growth,
underpinned by an
expanding multitude
of distribution
channels and in turn a
growth in market
share.”
Dean Suntup
Financial Director
Growth in earnings was
predominantly achieved through
increases in revenue of 19%, gross
profit of 11% and EBITDA of 15%.
The Group’s performance was
primarily attributable to organic
growth, underpinned by an
expanding multitude of distribution
channels and in turn a growth in
market share.
On the international front, the
Group’s share of losses in Blue Label
Mexico (BLM) declined by 28%, from
R89 million to R63 million. A negative
contribution of R27.7 million from
Oxigen Services India (OSI) was
congruent with significant
expenditure incurred on the expansion
of its mobile wallet subscriber base.
The above losses incurred impacted
negatively on Group headline
earnings per share by 9.50 cents and
4.16 cents respectively.
Capital and reserves accumulated to
R4.5 billion, net of accumulated
dividends paid to date totalling
R913 million, further strengthening
the Group’s balance sheet. The net
asset value equated to R6.62 per
share.