Economic Performance

We are operating in an economic environment heavily constrained by domestic and global challenges which impact on our business performance. The global economic slowdown in major economies including the Southern African region requires that the Group continues to take appropriate measures as well as explores alternative opportunities for improvement.

OUR STRATEGY

We are committed to building a resilient Group of businesses that will continue to create and deliver sustainable value for our shareholders and stakeholders. Our approach is to ensure that our experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity continue to manage all capitals deployed for value creation and sustaining in the short and long term.

DEFINED CONTRIBUTION PENSION PLAN

Our pension schemes are managed through self-administered defined contribution pensions for qualifying employees. We manage the Innscor Africa Limited Pension Fund, National Foods Pension Fund and Colcom Pension Fund under the Group. Compulsory external schemes comprised of the National Social Security Authority Scheme, Workers Compensation Insurance Fund and the Catering Industry Pension Fund. The total contributions to the schemes for the year is presented below:

  Unit 2017 2016
Pension Contribution US$ 4,446,408 3,230,270

Valued Added Statement 2017

Economic Value Generation Unit 2017 2016
Value Generated* US$ 210,019,919 207,930,097
Other Income and Interest US$ 4,527,464 5,905,253
Equity Accounted Earnings US$ 6,223,551 4,760,760
  US$ 33,688,612 30,477,416
Economic Value Distribution Unit 2017 2016
Other Operating Costs US$ (81,622,545) (83,600,705)
Staff Costs and benefits US$ (66,088,198) (72,183,166)
Impairment and related charges US$ (9,908,385) (1,708,921)
Depreciation and Amortisation US$ (15,289,432) (15,974,415)
Providers of Capital US$ (6,233,574) (6,127,835)
Provisions for Taxes US$ (7,940,188) (8,523,652)
Value Added US$ 33,688,612 30,477,416

*Value Generated is derived from Revenue less Costs of generating the revenue

PAYMENTS TO GOVERNMENT

Our payments to Government are through taxes, licences and fees paid by our operations. Below is a summary of taxes paid by continuing operations:

  Unit 2017 2016
Corporate Tax – Associates US$ 1,084,357 1,148,496
Corporate Tax – Subsidiaries US$ 6,562,720 11,548,556
Value Added Tax (VAT) US$ 6,624,349 5,855,393
Import Duty US$ 4,359,389 5,124,560
Other Taxes US$ 5,259,775 5,718,613
Grand Total US$ 23,890,950 29,395,618