Online Annual Report 2009

Reconciliation of the 2008 53rd week adjustment


  Rm 52 weeks
June 2009
(Audited)		 53 weeks
June 2008
(Audited)		 53rd week
pro forma
adjustment		 52 weeks
June 2008
(Pro forma)		 52 week
total
% change
  Revenue 43,231.8 39,944.8 (827.3) 39,117.5 10.5
  Sales 43,128.7 39,783.6 (825.3) 38,958.3 10.7
  Cost of sales (35,351.0) (32,481.4) 699.7 (31,781.7) (11.2)
  Gross profit 7,777.7 7,302.2 (125.6) 7,176.6 8.4
  Other income 103.1 161.2 (2.0) 159.2 (35.2)
  Depreciation and amortisation (343.1) (297.8) – (297.8) (15.2)
  Impairment of assets (1.6) (4.7) – (4.7) 66.0
  Employment costs (2,965.8) (2,736.2) 13.1 (2,723.1) (8.9)
  Occupancy costs (1,135.5) (962.7) 10.4 (952.3) (19.2)
  Foreign exchange (loss)/gain (78.4) 62.5 – 62.5 –
  Other operating costs (1,405.8) (1,439.4) 12.1 (1,427.3) 1.5
  Operating profit 1,950.6 2,085.1 (92.0) 1,993.1 (2.1)
    Finance costs (112.8) (110.6) 1.2 (109.4) (3.1)
    Finance income 64.2 46.5 3.2 49.7 29.2
  Net finance costs (48.6) (64.1) 4.4 (59.7) 18.6
  Profit before taxation 1,902.0 2,021.0 (87.6) 1,933.4 (1.6)
  Taxation (620.4) (662.9) 30.1 (632.8) 2.0
  Profit for the year 1,281.6 1,358.1 (57.5) 1,300.6 (1.5)
  Attributable to:          
    Equity holders of the parent 1,210.9 1,314.1 (57.5) 1,256.6 (3.6)
    Preference shareholders 38.0 22.5 – 22.5  
    Minority interest 32.7 21.5 – 21.5  
    1,281.6 1,358.1 (57.5) 1,300.6  
  Basic EPS (cents) 606.9 660.3 (28.8) 631.5 (3.9)
  Diluted basic EPS (cents) 593.4 644.6 (28.2) 616.4 (3.7)
  Reconciliation of net profit for the year to headline earnings          
  Net profit attributable to equity holders of the parent 1,210.9 1,314.1 (57.5) 1,256.6  
    Impairment of assets 1.6 4.7 – 4.7  
    Loss on disposal of fixed assets 1.7 3.8 – 3.8  
    Profit on sale of assets classified as held for sale (7.0) – – –  
    Total tax effects of adjustments (0.1) (3.2) – (3.2)  
  Headline earnings 1,207.1 1,319.4 (57.5) 1,261.9 (4.3)
  Headline earnings before foreign exchange 1,263.5 1,274.4 (57.5) 1,216.9 3.8
  Headline EPS (cents) 605.0 663.0 (28.9) 634.1 (4.6)
  Headline earnings before foreign exchange (cents) 633.3 640.4 (28.9) 611.5 3.6
  Diluted headline EPS (cents) 591.6 647.2 (28.2) 619.0 (4.4)
The pro forma financial effects, for which the directors of Massmart are responsible, are provided for illustrative purposes only. These show the effect of the additional week of trading in the prior year on the financial information of Massmart. This allows a like-on-like comparison of the 52-week periods.
Because of its nature, the pro forma financial effects may not fairly present the Group’s financial position, changes in equity, results of operations or cash flows.
The pro forma financial effects have been prepared using accounting policies that comply with International Financial Reporting Standards. The accounting policies are consistent with those applied in the previous financial year.
The pro forma financial effects have been compiled from the financial information for the 53 weeks ended June 2008.
The pro forma information has been audited by the independent auditors, Deloitte & Touche. The audit was performed in accordance with International Standards on Assurance Engagements 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. The auditor’s report is available for inspection at the registered office of the Company.

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