| |
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Operating Decision Maker in order to allocate resources to the segments and to assess their performance.
The Chief Operating Decision Maker has been identified as the executive directors of the Group.
On this basis, the Group has five reportable segments:
| Segment |
| Nature of business |
| Retail |
| – Retailers of tiles, brassware, laminated flooring, bathroomware, other home-finishing products and accessories. |
| Franchising |
| – Bearer of South African and non-South African trademarks. |
| Properties |
| – Property investments and leasing. |
| Supply and support services |
| – Distributor of tiles, shower enclosures, brassware, laminate and vinyl flooring, accessories, and tiling tools.
– Group administration, marketing and management services.
– Outsourced debtor solutions.
– Procurement. |
| Manufacturing |
| – Manufacturers of tiles, sanitaryware, baths, adhesive and related products. |
All intersegmental transactions are concluded at arm's length.
The following measures, as included in the quarterly management report reviewed by the Chief Operating Decision Maker, are used to assess performance.
| (Rand millions unless otherwise stated) |
| Retail |
Manu-
facturing* |
Supply and
support
services* |
Franchising |
Properties |
Associates |
Consolidation |
Total |
| For the year ended
30 June 2025 |
|
|
|
|
|
|
|
| |
| Turnover |
| 5 302 |
4 724 |
2 428 |
– |
– |
– |
(3 578) |
8 876 |
| – From external customers* |
| 5 302 |
3 116 |
458 |
– |
– |
– |
– |
8 876 |
| – Intersegment |
| – |
1 608 |
1 970 |
– |
– |
– |
(3 578) |
– |
| Turnover from franchise stores** |
| 2 383 |
– |
– |
– |
– |
– |
(2 383) |
– |
| Cost of sales |
| (3 229) |
(3 658) |
(2 032) |
– |
– |
– |
3 652 |
(5 267) |
| Achieved gross margin*** |
| 1 890 |
1 056 |
286 |
2 |
– |
– |
308 |
3 542 |
| Manpower costs |
| (331) |
(562) |
(167) |
(11) |
(7) |
– |
– |
(1 078) |
| Depreciation |
| (88) |
(304) |
(19) |
(3) |
(119) |
– |
– |
(533) |
| Freight cost |
| (12) |
(441) |
(73) |
– |
– |
– |
26 |
(500) |
| Impairment of property, plant
and equipment |
| – |
– |
– |
– |
– |
– |
– |
– |
| Profit on sale of property, plant and equipment |
| # |
(4) |
(4) |
# |
14 |
– |
– |
6 |
| Trading profit |
| 546 |
507 |
287## |
334### |
378#### |
– |
9 |
2 061 |
| Finance income |
| 16 |
37 |
68 |
# |
37 |
– |
(33) |
125 |
| Finance costs |
| (8) |
(6) |
(37) |
# |
(58) |
– |
33 |
(76) |
| Income from associates |
| – |
– |
– |
– |
– |
6 |
– |
6 |
| Profit before taxation |
| 554 |
538 |
318 |
334 |
357 |
6 |
9 |
2 116 |
| For the year ended
30 June 2024 |
|
|
|
|
|
|
|
| |
| Turnover |
| 5 178 |
5 013 |
2 470 |
– |
– |
– |
(3 597) |
9 064 |
| – From external customers* |
| 5 177 |
3 426 |
461 |
– |
– |
– |
– |
9 064 |
| – Intersegment |
| 1 |
1 587 |
2 009 |
– |
– |
– |
(3 597) |
– |
| Turnover from franchise stores** |
| 2 471 |
– |
– |
– |
– |
– |
(2 471) |
– |
| Cost of sales##### |
| (3 128) |
(3 812) |
(2 079) |
– |
– |
– |
3 642 |
(5 377) |
| Achieved gross margin*** |
| 1 880 |
1 192 |
285 |
1 |
– |
– |
273 |
3 631 |
| Manpower costs |
| (339) |
(636) |
(164) |
(10) |
(7) |
– |
(7) |
(1 163) |
| Depreciation |
| (88) |
(284) |
(25) |
(3) |
(106) |
– |
– |
(506) |
| Freight cost##### |
| (13) |
(468) |
(71) |
– |
– |
– |
23 |
(529) |
| Impairment of property, plant
and equipment |
| – |
– |
– |
– |
(15) |
– |
– |
(15) |
| Profit on sale of property, plant and equipment |
| # |
# |
1 |
# |
(2) |
– |
– |
(2) |
| Trading profit |
| 507 |
556 |
286## |
338### |
355#### |
– |
14 |
2 056 |
| Finance income |
| 17 |
28 |
74 |
– |
54 |
– |
(53) |
120 |
| Finance costs |
| (1) |
(12) |
(29) |
– |
(98) |
– |
53 |
(87) |
| Income from associates |
|
– |
– |
– |
– |
– |
12 |
– |
12 |
| Profit before taxation |
| 523 |
572 |
331 |
338 |
311 |
12 |
14 |
2 101 |
| |
| * |
Turnover from external customers includes sales to franchise stores. |
| ** |
Franchise stores are not controlled by the Group. |
| *** |
Achieved Gross Margin is calculated as Gross Margin less freight costs, movement in stock provisions and other cost of sales. |
| # |
Less than R1 million. |
| ## |
Includes franchise income of R72 million (2024: R72 million) disclosed in note 3.3. |
| ### |
Includes royalty income of R133 million (2024: R146 million) disclosed in note 3.3. |
| #### |
The trading profit in the Properties division includes unconsolidated property rental received of R503 million (2024: R495 million). |
| ##### |
The 2024 Segmental report has been amended to separately disclose the cost of sales and freight costs, which contribute a significant portion of the operating expenses. |
Geographical analysis
| (Rand millions unless otherwise stated) |
| South Africa |
Rest of Africa |
Australia |
Consolidation |
Group |
| For the twelve months ended 30 June 2025 |
|
|
|
|
|
|
| Turnover |
| 10 729 |
1 182 |
543 |
(3 578) |
8 876 |
| Non-current assets |
| 7 459 |
494 |
226 |
(1 999) |
6 180 |
| For the twelve months ended 30 June 2024 |
|
|
|
|
|
|
| Turnover |
| 10 887 |
1 110 |
664 |
(3 597) |
9 064 |
| Non-current assets |
| 7 654 |
503 |
234 |
(1 988) |
6 403 |
|
