Our business model

INPUTS

Financial capital

Equity capital
Debt capital

Working capital
Capital expenditure: R492 million

Manufactured capital

Property, plant and equipment to the value of R49 million, including:

R7 million vending machines and terminal devices;

R15 million computer equipment;
R5 million media equipment;
R6 million motor vehicles; and
R16 million leasehold improvements.

Intellectual capital

Additions to intangible assets: R250 million
Software development spend: R193 million
Market insight and data
Entrepreneurial culture and agile practices
Operating systems, policies, processes and procedures

Reporting and communication
Proprietary technology, software and IT systems
Targeted analytical processes, machine learning and artificial and intelligence (AI)

Human capital

Employees: 1 119
Salaries and benefits spend: R1.053 billion
Experienced Board, executive and senior management

Performance management system
Leadership development programme

Social and relationship capital

Relationships with all stakeholder groups, including:

Employees, customers, shareholders, government and regulators, partners and suppliers and media
SED spend: R6.1 million

Natural capital

Refer to Our environmental impact

Blu Label Unlimited resources are divided into six capitals by the <IR> Framework, which considers how an organisation’s operations and results impact or change these resources. We weigh the trade-offs between the various value drivers and every choice we make aims to maximise benefits and minimise drawbacks.

In 2025, the Group intensified its transition towards a paperless environment, reducing reliance on physical documentation and enhancing digital processes across operations. Energy efficiency initiatives, including optimisation of office power usage and improved equipment management, contributed to lower electricity consumption. Water efficiency programmes, such as responsible usage practices and monitoring systems, ensured consumption remained within sustainable levels.

OUTCOMES

A strong balance sheet and sufficient working capital to fund the operations that support long-term sustainability

Revenue: R14.1 billion
Gross profit: R3.4 billion

Economic benefits for stakeholders

Finance activities: R692 million inflow
Lease payments: R30 million
Taxes paid: R321 million
Employee salaries and benefits: R1.053 billion

Ability to deliver valuable services and solutions in response to changing consumer demands

Strategically located outlets offering convenient customer access to products and services

Proprietary systems/solutions add value and secure sophisticated contracts
Accelerating our digitisation projects to fast-track our ability to be responsive to our new environment
Improved responses to changing consumer needs

Brand reinforcement and market communication
Accelerated deployment of new technologies
Effective controls and processes
Creative solutions increase productivity, cost savings and synergies

Building an organisation that is future fit, an inclusive business with a growth mindset
Employee well-being is part of our strategy to succeed
Employee engagement is more centred around creating meaningful jobs and creating an environment that creates purpose

A vibrant, diverse and flexible workforce committed to the long-term success of Blu Label:

46% female;
81% of recruits are black; and
74% appointed in managerial roles are black.

Inclusive leadership that promotes innovation, teamwork and job satisfaction

Building sustainability programmes that impact communities and youth development
Initiatives aimed to build entrepreneurs and SMMEs
Supporting flagship beneficiaries that align with our shared socio-economic values through the Trust Blu Foundation

Business efficiency through collaboration with producers and suppliers
Building trust and respect
Social relevance in the communities we operate in
Brand reinforcement and market communication
Sustained confidence from shareholders and investors

We are aware of the environmental impacts of our operations and activities. We pursue the responsible management of waste and emissions, with a focus on the sustainable use of our resources

Blu Label views digital products and services as having significant potential to deliver positive environmental outcomes

Our business model and the use of the capitals to create value for all our stakeholders are underpinned by robust corporate governance, as outlined on ESG reporting index.

TRADE-OFFS

Short-term investment vs long-term benefit

An essential trade-off between short and long-term investment is associated with financial capital.

It is important to balance the interest of short-term benefits with those of long-term sustainable growth objectives. While both are important for different stakeholders at different times, they are also key to our strategic decision-making process.

Automation and human capital

Automation of routine tasks through technology may reduce human capital in the long term. Blu Label’s approach is to find value-creating opportunities in new and evolving technologies that support our employees and our communities in their work.

Fast-paced innovation

Our technical innovation and entrepreneurial drive are central to effectively serving the unbanked market segment and those without access to technology.

The adoption of new technologies, as well as processes and systems that are faster and more efficient, requires effective change management with employees and subsidiaries.

Responding to social and environmental issues

Climate change is increasingly in the spotlight as the effects of global warming start to show up in severe weather events worldwide. At the same time, social challenges and inequality are thrown into sharp relief, especially in developing countries. In choosing where to allocate Blu Label’s financial resources to improve the world, we consider solving social issues focusing on our material suppliers’ value chains.