Summarised audited results
for the 12 months ended 30 June 2021

Imperial is your 'Gateway to Africa'
Imperial is your 'Gateway to Africa'

Results overview

  1. Imperial recorded a strong recovery in volumes and profitability compared to F2020. This is reflected in the group’s excellent set of results for the 2021 financial year, in addition to the significant strategic progress made (despite the continued impact of COVID-19) and significantly unlocking value for its key stakeholders.
  2. Imperial’s balance sheet remains strong with net debt:EBITDA at 1,3x compared to 2,8x in F2020, supported by the receipt of the proceeds of c.R4,7 billion from the sale of the European and South American shipping businesses during the year.
  3. Strong free cash flow (post maintenance capex, repayment of lease obligations and excluding discontinued operations and CPG) of R900 million was generated during the year (F2020: R1 304 million).
  4. Excluding businesses held for sale, revenue grew by 14% to R51 705 million from R45 330 million, mainly supported by a recovery in volumes across most businesses as COVID-19 lockdown restrictions eased in certain key markets, new business gains and acquisitions. However, businesses exposed to alcohol and tobacco sales in Africa and our European operations in the automotive sector were negatively impacted by ongoing lockdown restrictions and the global shortage of semi-conductors during the year.
  5. Continuing EBITDA, excluding businesses held for sale, increased by 23% from R4 050 million to R4 964 million.
  6. Continuing operating profit, excluding businesses held for sale, increased by 59% from R1 480 million in the prior year as a result of stringently managed costs across all businesses, a steady recovery in operations as COVID-19 lockdown restrictions eased in key markets, new contract gains and the inclusion of new acquisitions.
  7. Continuing operating margin increased to 4,5% from 3,1% in the prior year.
  8. Continuing Headline Earnings per share (HEPS) increased by 113% to 332 cents per share and continuing Core EPS increased by 215% to 448 cents per share. At interim results 2021, we re-introduced Core EPS as management believes it is a fairer reflection of Imperial’s trading performance. Core EPS is determined as follows: headline earnings are adjusted by items that are not considered to be of a trading nature to arrive at Core EPS. A full reconciliation of HEPS to earnings per share (EPS) is on Group financial performance.
  9. While the impact of COVID-19 on operations was not as severe as the impact recorded in the 2020 financial year, management estimates that COVID-19 negatively impacted revenue and operating profit by c.R2,6 billion and c.R346 million respectively in F2021. Excluding the impact of COVID-19 in F2020 and F2021, management estimates that revenue increased by 9% and operating profit increased by 7%.
  10. Annualised costs of c.R200 million were removed from Logistics Africa, which will assist in maintaining our competitive market positioning.
  11. Imperial’s contract renewal rate across its operations on existing contracts remains strong at 88%, with a strong pipeline of new opportunities.
  12. New business revenue of c.R5,9 billion p.a. was secured on a rolling 12-month basis to the end of June 2021.
  13. Strategic acquisitions of c.R120 million were concluded during the year. We also announced two additional acquisitions: Deep Catch Namibia Holdings (c.R633 million) and the J&J Group (c.R4,4 billion).
  14. The disposal of the loss-making business, Pharmed, was successfully concluded during the year.
  15. Net working capital of R787 million increased by 45% from R544 million at June 2020 but is below the guidance of 4% to 5% of revenue.
  16. Net capital expenditure of R701 million from continuing operations decreased from R1 149 million and was significantly lower than depreciation (excluding right-of-use assets). Some of this decline is attributed to more effective and efficient fleet management technology implemented across Logistics Africa.
  17. Net debt of R4 038 million decreased by 52% compared to June 2020 mainly due to the proceeds from the disposal of the European and South American shipping businesses. A summary of the movements is provided in the group financial performance section.
  18. ROIC of 9,0% (F2020: 4,9%) vs. the weighted average cost of capital (WACC) of 7,7% (F2020 7,6%), improved significantly from F2020.
  19. We continued to record significant strides in our strategic journey to transform from a portfolio of regional businesses to an integrated end-to-end market access and logistics business — with the strategic intent of becoming ‘One Imperial’ and a ‘Gateway to Africa’, with committed and well-skilled executive management teams.
  20. In July 2021, we announced that Imperial entered into a transaction implementation agreement regarding a cash offer of R66 per share from DP World Logistics FZE (DP World), to acquire all outstanding shares of Imperial, implying an estimated aggregate cash consideration of c.R12,7 billion. This transaction is in progress and subject to shareholder and regulatory approvals.
  21. Discontinued operations: the European shipping business was sold on 31 July 2020 and is classified as a discontinued operation in these results.
  22. The results of Pharmed and South American Shipping, previously reported as held for sale, are included in continuing operations for reporting purposes.