Notes to the Group annual financial statements l Note 1.6

1. Results of operations
1.6 Cash generated by operations
 
    2017 
 R’000 
        2016 
 R’000 
   
Reconciliation of operating profit to cash generated by operating activities:                
Operating profit  1 218 472        1 142 376    
Adjustments for:                
Depreciation of property, plant and equipment  44 684        42 738    
Amortisation of intangible assets  143 109        130 353    
Impairment of intangible assets  —        2 568    
Discounting of receivables recognised in revenue  163 069        129 633    
Discounting of payables recognised in changes in inventories of finished goods  (197 509)       (165 903)   
Impairment of inventory  1 178        —    
Impairment of loans  4 001        —    
Loss/(profit) on disposal of property, plant and equipment  30        (500)   
Loss on disposal of intangible assets  —          
Loss on disposal of subsidiary  —        3 885    
Contingent purchase price release  (10 210)       (48 120)   
Equity compensation benefit expense  23 417        23 845    
Net unrealised forex loss/(profit) 47 157        (68 857)   
Changes in working capital (excluding the effects of acquisitions and disposals):                
Increase in inventories  (518 909)       (225 756)   
(Increase)/decrease in trade and other receivables  (105 132)       52 252    
Increase/(decrease) in trade and other payables  945 075        (271 764)   
Increase in loans receivable  (5 405)       (1 281)   
Decrease/(increase) in starter pack assets  964        (1 288)   
   1 753 991        744 185     

Notes to the Group annual financial statements l Note 1.6