Five-year review of financial performance

Period Number of weeks			2018 52	2017 53	2016 52	2015 52	2014 52
Returns and margin performance		5-year average*
Gross margin	(%)	54	52	53	53	55	56
Trading margin	(%)	18	14	15	17	21	23
Operating margin	(%)	27	23	23	25	31	32
Return on equity	(%)	33	27	31	35	35	37
Return on assets	(%)	31	25	26	24	38	42
Inventory turn	(times)	4.4	4.0	4.5	3.3	4.7	5.3
Asset turnover	(times)	1.1	1.1	1.1	1.0	1.2	1.3
Net debt to equity	(%)	20	9	18	33	–	–
Net debt to EBITDA	(times)	0.4	0.2	0.4	0.6	–	–
Return on invested capital (ROIC)	(%)	20	16	17	17@	24	25
Weighted average cost of capital (WACC)	(%)	14	14	13	13	14	14
ROIC divided by WACC	(times)	1.4	1.1	1.3	1.3	1.7	1.8
Statements of comprehensive income		5-year compound growth (%)*
Sale of merchandise	(Rm)	12	17 547	18 065	16 654	11 290	10 458
Trading expenses	(Rm)	17	(6 954)	(7 086)	(6 240)	(4 116)	(3 668)
Trading profit	(Rm)	–	2 518	2 708	2 851	2 373	2 408
Profit before tax	(Rm)	2	3 696	3 915	3 946	3 437	3 357
Headline earnings	(Rm)	2	2 647	2 836	2 806	2 471	2 410
Statements of financial position
Non-current assets	(Rm)	40	6 904	6 559	7 413	1 876	1 360
Cash and cash equivalents	(Rm)	(6)	982	2 055	1 592	1 462	1 588
Trade and other receivables	(Rm)	6	5 110	5 256	5 281	4 637	4 182
Inventories	(Rm)	21	2 072	1 916	2 401	1 074	863
Other current assets	(Rm)	30	423	353	374	108	83
Total assets	(Rm)	16	15 491	16 139	17 061	9 157	8 076
Total equity	(Rm)	11	10 369	9 450	8 625	7 504	6 642
Non-current liabilities	(Rm)	90	2 363	4 709	5 481	192	88
Current liabilities	(Rm)	24	2 759	1 980	2 955	1 461	1 346
Total equity and liabilities	(Rm)	16	15 491	16 139	17 061	9 157	8 076
Statements of cash flows
Cash inflow from operations	(Rm)	10	3 471	2 987	2 839	2 145	2 542
Capital expenditure	(Rm)	12	485	467	599	380	289
Share performance
Basic earnings	(cents per share)	1	614.8	659.9	667.1	591.2	575.9
Headline earnings	(cents per share)	2	615.7	662.0	667.6	593.8	576.8
Diluted headline earnings	(cents per share)	2	612.7	660.9	665.9	592.1	569.3
Cash flow	(cents per share)	9	807.4	697.2	675.5	515.5	608.4
Cash equivalent earnings	(cents per share)	4	738.3	766.3	759.0	642.9	634.8
Net asset value	(cents per share)	10	2 421	2 201	2 032	1 791	1 605
Dividends declared	(cents per share)	3	420	452	452	405	385
Dividend cover	(times)		1.5	1.5	1.5	1.5	1.5
Number of shares in issue	(000’s)		442 590	442 059	436 183	429 328	422 640
Number of shares in issue (net of treasury shares)	(000’s)		428 260	429 410	424 456	418 960	413 774
Weighted average number of shares	(000’s)		429 855	428 370	420 263	416 149	417 757
Cumulative shares repurchased#	(Rm)		3 214	3 030	2 929	2 929	2 929
Cumulative shares repurchased#	(000’s)		98 745	96 541	95 041	95 041	95 041
Closing share price	(cents per share)		7 725	7 150	8 769	8 649	7 490

Note: 2016 includes the results of Office for 31 weeks, unless otherwise indicated.
*	Impacted by the acquisition of Office. Net debt ratios reflect three-year averages.
@	The 2016 ratio is based on the results of the Group including 12 months of Office’s profits, on a pro forma basis, excluding any exceptional non-recurring items.
#	Includes shares previously repurchased and cancelled: 44 million (cost of R1.9 billion) in 2014, 36 million (cost of R275 million) in 2007 and 7 million (cost of R200 million) in 2006.
	The full ten-year review and definitions are available here.
	The Summarised Group Annual Financial Statements appear here.