Financial Performance
Financial Highlights
| % change | 2007 | 2006 | |
|---|---|---|---|
| Retail turnover (Rm) | 12,4 | 7 230,0 | 6 432,1 |
| Operating profit before finance charges (Rm) | 20,4 | 1 887,0 | 1 567,3 |
| Profit before tax (Rm) | 19,8 | 1 782,3 | 1 488,2 |
| Headline earnings (Rm) | 13,4 | 1 119,2 | 986,9 |
| Profit attributable to equity holders of Foschini Limited (Rm) | 13,4 | 1 119,2 | 986,9 |
| Cash flows from operating activities (Rm) | 202,1 | 99,3 | (97,3) |
| Total shareholders’ interest (Rm) | 17,0 | 3 823,6 | 3 267,9 |
| Earnings per ordinary share* (cents) | 15,4 | 534,2 | 463,0 |
| Headline earnings per ordinary share* (cents) | 15,4 | 534,2 | 463,0 |
| Tangible net asset value per ordinary share** (cents) | 17,5 | 1 789,4 | 1 523,4 |
| Dividend per share (cents) | 22,7 | 270,0 | 220,0 |
| Share price (cents) | |||
| – at year-end | 18,6 | 6 910,0 | 5 826,0 |
| – high | 14,1 | 7 101,0 | 6 225,0 |
| – low | 24,7 | 4 040,0 | 3 240,0 |
| – average | 17,7 | 5 427,0 | 4 612,0 |
| Market capitalisation (Rm) | 18,6 | 16 618,4 | 14 011,4 |
| Gross number of shares in issue (millions) | 240,5 | 240,5 | |
| Net number of shares in issue (millions) | 212,0 | 212,6 | |
| Closing US$ conversion rate | 7,30 | 6,21 | |
| Average US$ conversion rate | 7,06 | 6,26 | |
| * based on the weighted average number of shares in issue | |||
| ** based on the net actual number of shares in issue | |||
Retail Turnover
| 2007 Rm |
% change 52 versus 53 weeks |
% change 52 versus 52 weeks |
2006 Rm |
|
|---|---|---|---|---|
| Foschini | 2 911,8 | 9,4 | 11,6 | 2 660,6 |
| Markham | 1 138,3 | 15,9* | 18,6* | 1 054,7 |
| Exact! | 682,6 | 15,2 | 17,4 | 592,4 |
| Sports division | 1 062,4 | 17,4 | 20,0 | 904,7 |
| Jewellery division | 1 022,5 | 14,5 | 16,3 | 893,4 |
| @home | 412,4 | 26,3 | 28,6 | 326,3 |
| 7 230,0 | 12,4 | 14,6 | 6 432,1 |
Foschini Limited and its subsidiaries
| RCS Financial Services | Retail | Consolidated | ||||
|---|---|---|---|---|---|---|
| 2007 Rm |
2006 Rm |
2007 Rm |
2006 Rm |
2007 Rm |
2006 Rm |
|
| REVENUE* | ||||||
| External | 677,6 | 494,5 | 7 683,7 | 6 812,2 | 8 361,3 | 7 306,7 |
| Inter-segment | – | – | – | – | – | – |
| Total revenue | 677,6 | 494,5 | 7 683,7 | 6 812,2 | 8 361,3 | 7 306,7 |
| SEGMENT RESULT | ||||||
| Operating profit before finance charges | 408,5 | 317,1 | 1 478,5 | 1 250,2 | 1 887,0 | 1 567,3 |
| External interest | (31,0) | (7,8) | (73,7) | (71,3) | (104,7) | (79,1) |
| Inter-segment interest | (54,8) | (56,2) | 54,8 | 56,2 | – | – |
| Interest paid | (85,8) | (64,0) | (18,9) | (15,1) | (104,7) | (79,1) |
| Income tax expense | (99,4) | (73,5) | (490,9) | (405,7) | (590,3) | (479,2) |
| Profit for the year | 223,3 | 179,6 | 968,7 | 829,4 | 1 192,0 | 1 009,0 |
| * Includes retail turnover, interest received and other income | ||||||
| SEGMENT ASSETS | ||||||
| Non-current assets | 919,2 | 609,9 | 1 241,2 | 926,6 | 2 160,4 | 1 536,5 |
| Current assets | 839,5 | 747,1 | 3 783,8 | 3 564,7 | 4 623,3 | 4 311,8 |
| Inter-segment assets (liabilities) | 12,9 | 12,9 | (12,9) | (12,9) | – | – |
| Total assets | 1 771,6 | 1 369,9 | 5 012,1 | 4 478,4 | 6 783,7 | 5 848,3 |
| SEGMENT LIABILITIES | ||||||
| Non-current liabilities | 391,6 | 224,6 | 890,8 | 839,6 | 1 282,4 | 1 064,2 |
| Current liabilities | 158,1 | 143,2 | 1 338,3 | 1 284,1 | 1 496,4 | 1 427,3 |
| Inter-segment liabilities (assets) | 725,4 | 676,4 | (725,4) | (676,4) | – | – |
| Total liabilities | 1 275,1 | 1 044,2 | 1 503,7 | 1 447,3 | 2 778,8 | 2 491,5 |
| SEGMENT INFORMATION | ||||||
| Capital expenditure | 13,2 | 3,6 | 291,2 | 309,9 | 304,4 | 313,5 |
| Depreciation and amortisation | 5,5 | 2,4 | 168,6 | 146,5 | 174,1 | 148,9 |
All retail divisions within the group operate in an established retail market and are therefore considered to be subject to similar risks and rewards.
Segment Revenue and Expenses
Revenue and expenses that are directly attributable to segments are allocated to those segments.
Those that are not directly attributable to segments are allocated on a reasonable basis.
Segment Assets and Liabilities
Segment assets include all operating assets used by a segment and consist principally of operating cash, receivables, inventories and property, plant and equipment, net of related allowances and provisions.
While most such assets can be directly attributable to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. Segment liabilities include all operating liabilities, and consist principally of accounts payable, salaries and taxes currently payable and accruals.
Inter-segment Transfers
Segment revenue, segment expenses and segment result include transfers between business segments.
These transfers occur at market prices and are eliminated on consolidation.
Objectives
![Objectives [graphs]](../images/MLT.jpg)
Store statistics
![Store Statistics [graphs]](../images/statistics_2007.gif)
Performance measures and ratios
| YEARS ENDED | 2007 | 2006 | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|
| Retail turnover (Rm) | 7 230 | 6 432 | 5 279 | 4 410 | 3 881 |
| Turnover growth (%) | 12.4 | 21.8 | 19.7 | 13.6 | 18.0 |
| Trading margin (%) | 26.1 | 24.3 | 22.7 | 18.5 | 15.0 |
| Attributable income (Rm) | 1 119 | 987 | 767 | 517 | 360 |
| Cash flow from operating activities (Rm) | 99 | (128) | 109 | 290 | 288 |
| Headline earnings (Rm) | 1 119 | 987 | 767 | 523 | 365 |
| Headline earnings per ordinary share (cents)* | 534.2 | 463.0 | 359.8 | 237.1 | 162.2 |
| Headline eps growth (%) | 15.4 | 28.8 | 51.8 | 46.2 | 84.5 |
| Return on equity (%) | 32.5 | 35.3 | 31.6 | 23.9 | 18.7 |
| Current ratio (times) | 3.1 | 3.1 | 2.46 | 2.70 | 3.34 |
ROE history
![ROE history [graphs]](../images/roe_history2007.jpg)