210 / 280
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
208
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
30.
SEGMENTAL SUMMARY
The Group’s segment reporting follows the organisational structure as reflected in its internal management
reporting systems, which are the basis for assessing the financial performance of the business segments and
for allocating resources to these segments. Management’s assessment of the Group’s organisational structure
takes the geographical location of the segments into account. All reporting segments located outside South
Africa are included in the International distribution segment. Operations included in all other segments are
located within South Africa.
Operating segments are reported internally to the chief operating decision-maker in a manner consistent
with the financial statements. In addition, the chief operating decision-maker uses core net profit as a
non-IFRS measure in evaluating the Group’s performance on a segmental level. The chief operating
decision-maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the executive directors, who are responsible for making strategic decisions
on behalf of the Group.
Transactions between reportable segments are conducted on the same terms as other transactions of a
similar nature.
The segment results for the year ended 31 May are as follows:
Total
South African distribution
2014
R’000
2013
R’000
2014
R’000
2013
R’000
Total segment revenue
25 354 475
24 720 865
24 837 763
24 363 215
Inter-segment revenue
(5 952 809)
(5 736 655)
(5 734 111)
(5 651 135)
Revenue
19 401 666
18 984 210
19 103 652
18 712 080
Segment result
Operating profit/(loss) before depreciation,
amortisation and impairment charges
787 993
713 622
821 310
796 439
Depreciation and amortisation
(62 175)
(56 143)
(48 401)
(48 450)
Impairment of property, plant and equipment
(128)
(3 408)
—
(3 408)
Impairment of intangible assets
(1 073)
—
—
—
Impairment of loans
(1 761)
(8 400)
(1 487)
(1 150)
Finance costs
(166 876)
(167 096)
(165 647)
(166 592)
Finance income
156 250
173 260
140 942
162 459
Share of (losses)/profits from associates and joint
ventures
(56 873)
(47 326)
—
543
Taxation
(206 442)
(196 404)
(186 664)
(175 675)
Net profit/(loss) for the year
448 915
408 105
560 053
564 166