Blue Label Unaudited results for the half year ended 30 November 2014

Unaudited results for the half year ended
30 November 2014

HIGHLIGHTS

	Increase in revenue of
	14% to
	R10.3 billion

	Increase in gross profit of
	11% to
	R788 million

	Increase in gross profit margins
	from 7.48% to
	7.62%*

	Increase in EBITDA of
	20% to
	R516 million

	Increase in headline earnings per share of
	15% to
	42.73 cents

	Increase in core earnings per share of
	17% to
	44.47 cents

*Excluding imputed interest IFRS adjustments.

COMMENTARY

Headline earnings per share increased by 15% to 42.73 cents. This growth was achieved in spite of the Group’s share of losses in Blue Label Mexico increasing by R14.5 million, negatively impacting on growth in headline earnings per share by 2.17 cents.

The growth in earnings was primarily attributable to increases in revenue of 14%, gross profit of 11% and EBITDA of 20%. Gross profit margins increased from 7.48% to 7.62% on exclusion of imputed IFRS interest adjustments. The growth in margins was achieved through the efficient application of cash resources to bulk inventory purchases at favourable discounts, early settlement supplier discounts, an increase in commissions earned on the distribution of prepaid electricity and compounding annuity income.