SENWES Integrated Report 2020 | Page 152

FINANCIAL REVIEW
SIMPLIFIED DISTRIBUTABLE INCOME AND SEGMENT STATEMENTS
Difference Group *
Market Access
Input Supply
Financial Services
Corporate and Consolidation
%
2020 R ’ m
2019 R ’ m
2020 R ’ m
2019 R ’ m
2020 R ’ m
2019 R ’ m
2020 R ’ m
2019 R ’ m
2020 R ’ m
2019 R ’ m
Turnover
78,8 %
4,803
2 687
765
758
3,533
1 485
385
348
120
96
Gross profit
30,3 %
1,776
1 363
750
762
672
292
231
215
123
94
Operating expenses
38,4 %
( 1,149 )
( 830 )
( 466 )
( 396 )
( 458 )
( 215 )
( 30 )
( 47 )
( 194 )
( 172 )
EBITDA
17,6 %
627
533
284
366
214
77
201
168
( 72 )
( 78 )
Depreciation
71,8 %
( 95 )
( 55 )
( 42 )
( 30 )
( 35 )
( 7 )
-
-
( 18 )
( 18 )
EBIT
11,3 %
532
478
242
336
179
70
201
168
( 90 )
( 96 )
Net finance costs
7,5 %
( 86 )
( 80 )
( 56 )
( 36 )
( 31 )
( 40 )
-
-
1
( 4 )
Profit before tax
12,1 %
446
398
186
300
148
30
200
168
( 89 )
( 100 )
Taxation
( 5,2 %)
( 109 )
( 115 )
Profit after tax 19,1 % 337 283
Non-controlling interest
1 822,9 %
( 34 )
( 2 )
Profit after tax and non-controlling
7,7 %
303
281
interest
Adjustments : Gain on bargain purchase of subsidiary ( 100 %) ( 56 ) - Reversal of impairment on loans ( 100 %) ( 12 ) - Impairment of goodwill 100 % 12 - Legal and consultation fees ( 61,7 %) 6 16 Other 300,0 % ( 7 ) ( 2 ) Normalised headline earnings 246 295 EPS 5,5 % 178,3 169,1 HEPS ( 18,7 %) 144,2 177,5 Interest cover 4,5 % 7,0 6,7 Gearing ratio 23,0 % 144 % 121 % * Group includes corporate segment .
MAIN VARIANCES
➊ The group ’ s gross profit is 30,3 % higher , mainly due to the inclusion of the newly acquired KLK ’ s gross profit .
➋ The group ’ s operational expenses increased by 38,4 %, mainly due to the following reasons :
� The inclusion of KLK ’ s operational expenditure from July 2019 ;
� The inclusion of newly acquired Grainovation and Falcon ’ s operational expenditure from November 2019 ; and
� Higher maintenance costs at silos ( mainly mechanical and electrical ) due to increased intake .
➌ The group ’ s EBIT is 11 , 3 % higher than 2019 , mainly due to acquisitions made during the year as explained above .
➍ The group ’ s finance costs are higher than the previous year mainly due to the increase in non-interest earning assets .
SENWES INTEGRATED REPORT 2020
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