Integrated performance and overview of results

1. Diluted core earnings exclude once off and non-operational items.

Revenue (R million)   Operating profit (R million)
Basic core earnings per share (cents)   Total assets (R millon)


Imperial’s portfolio of businesses performed to expectation in deteriorating trading conditions. Revenue growth of 9% to R56,2 billion was attributable mainly to acquisitions.

Operating profit decreased 9% to R2,9 billion due mainly to depressed margins caused by the delayed impact of a weakening Rand on the competitiveness and profitability of the Vehicle Import, Distribution and Dealership division. The profitability of the Logistics International division was depressed by low and declining activity levels in most Eurozone logistics sectors, and the Financial Services division’s results were depressed by weaker equity markets in our insurance business. These declines were almost countered by an excellent performance from Logistics Africa, and a pleasing performance by the Vehicle Retail, Rental and Aftermarket Parts division.

Core EPS declined 14% to 803 cents and HEPS decreased 9% to 759 cents. A full reconciliation from earnings to headline earnings and core earnings is provided.

The return on equity of the Group was 17% on a rolling 12 month basis and cash flow from operating activities improved 73% to R1 billion largely as a result of a lower investment in working capital.

Revenue (R million)   Operating profit (R million)
Revenue (R million)   Operating profit (R million)
Revenue (R million)   Operating profit (R million)
Revenue (R million)   Operating profit (R million)

These results reflect progress with Imperial’s previously espoused intent to decouple the Group’s performance from the impact of currency weakness on the Vehicle Import, Distribution and Dealership division, as it pertains specifically to the competitiveness and profitability of new vehicles that are imported directly. Progress towards this objective has been achieved by investing in or developing less correlated activities within the vehicle value chain as well as in businesses where our capabilities, experience and expertise enable us to grow at acceptable, sustainable rates of return in new markets and geographies.

During the reporting period this approach resulted in non-vehicle revenue increasing 13% to R25 billion (45% of Group revenue) with foreign revenue increasing 23% to R21 billion (36% of Group revenue). Non-vehicle operating profit increased 6% to R1,7 billion (57% of Group operating profit) and operating profit from foreign operations increased 20% to R856 million (30% of Group operating profit), while operating profit from African operations outside of South Africa increased 60% to R383 million.

The refinement of the Imperial portfolio remains an imperative in pursuit of sharper executive focus and higher returns on capital and effort in the medium term. This will be accomplished firstly by investing in assets and acquisitions that will improve growth, returns and sustainability for stakeholders and secondly by disposing of those that are non-core, strategically misaligned, underperforming or of low return on effort.


Consumer and business confidence in South Africa remained fragile exacerbated by electricity shortages. Continually deteriorating business conditions were generally more challenging than in the comparable period.

African markets served by Imperial to the north of South Africa experienced higher growth, with terrorism and the more recent reduction of the oil price yet to have an impact on the performance of our businesses.

With the exception of the United Kingdom, the recovery of the Eurozone remained tentative, particularly in Germany where Imperial has extensive operations.