Quarter ended | |||||
US$ million | Note | Dec 2023 | Dec 2022 | ||
Sales | 1,272 | 1,660 | |||
---|---|---|---|---|---|
Cost of sales | 1,084 | 1,332 | |||
Gross profit | 188 | 328 | |||
Selling, general and administrative expenses | 100 | 96 | |||
Other operating (income) expenses | 179 | – | |||
Share of (profit) loss from equity accounted investees | 2 | 1 | |||
Operating profit (loss) | 3 | (93) | 231 | ||
Net finance costs | 14 | – | |||
Finance costs | 26 | 25 | |||
Finance income | (10) | (23) | |||
Net foreign exchange gain | (2) | (2) | |||
Profit (loss) before taxation | (107) | 231 | |||
Taxation | 19 | 41 | |||
Profit (loss) for the period | (126) | 190 | |||
Basic earnings per share (US cents) | 4 | (23) | 34 | ||
Weighted average number of shares in issue (millions) | 559.3 | 566.2 | |||
Diluted earnings per share (US cents) | 4 | (23) | 32 | ||
Weighted average number of shares on fully diluted basis (millions) | 605.7 | 602.7 |
Hover over a row in the table to the left to populate this graph
Quarter ended | ||||
US$ million | Dec 2023 | Dec 2022 | ||
Profit (Loss) for the period | (126) | 190 | ||
---|---|---|---|---|
Other comprehensive income, net of tax | ||||
Items that will not be reclassified subsequently to profit or loss | – | – | ||
Actuarial gains (losses) on post-employment benefit funds | – | – | ||
Tax effect | – | – | ||
Items that may be reclassified subsequently to profit or loss | 25 | 70 | ||
Exchange differences on translation of foreign operations | 16 | 39 | ||
Movements in hedging reserves | 10 | 35 | ||
Tax effect | (1) | (4) | ||
Total comprehensive income for the period | (101) | 260 |
Hover over a row in the table to the left to populate this graph
Reviewed | |||||
US$ million | Note | Dec 2023 | Sept 2023 | ||
ASSETS | |||||
Non-current assets | 3,907 | 3,742 | |||
Property, plant and equipment | 2,985 | 2,886 | |||
Right-of-use assets | 68 | 69 | |||
Plantations | 535 | 488 | |||
Deferred tax assets | 79 | 75 | |||
Goodwill and intangible assets | 101 | 88 | |||
Equity accounted investees | 10 | 9 | |||
Other non-current assets | 129 | 127 | |||
Current assets | 2,000 | 2,054 | |||
Inventories | 823 | 777 | |||
Trade and other receivables | 634 | 658 | |||
Derivative financial assets | 6 | 14 | |||
Taxation receivable | 4 | 4 | |||
Cash and cash equivalents | 533 | 601 | |||
Total assets | 5,907 | 5,796 | |||
EQUITY AND LIABILITIES | |||||
Shareholders’ equity | |||||
Ordinary shareholders’ interest | 2,261 | 2,445 | |||
Non-current liabilities | 2,074 | 2,035 | |||
Interest-bearing borrowings | 1,341 | 1,329 | |||
Lease liabilities | 60 | 61 | |||
Deferred tax liabilities | 411 | 394 | |||
Defined benefit and other liabilities | 262 | 251 | |||
Current liabilities | 1,572 | 1,316 | |||
Interest-bearing borrowings | 317 | 266 | |||
Lease liabilities | 31 | 30 | |||
Trade and other payables | 910 | 908 | |||
Provisions | 8 | 185 | 80 | ||
Derivative financial liabilities | 8 | 3 | |||
Taxation payable | 36 | 29 | |||
Shareholders for dividend | 85 | – | |||
Total equity and liabilities | 5,907 | 5,796 | |||
Number of shares in issue at balance sheet date (millions) | 559.9 | 558.8 |
Hover over a row in the table to the left to populate this graph
Quarter ended | ||
US$ million | Dec 2023 | Dec 2022 |
Profit (Loss) for the period | (126) | 190 |
---|---|---|
Adjustment for: | ||
Depreciation, fellings and amortisation | 87 | 80 |
Taxation | 19 | 41 |
Net finance costs | 14 | – |
Defined post-employment benefits paid | 4 | (5) |
Plantation fair value adjustments | (48) | (24) |
Asset impairments | 2 | – |
(Profit) Loss on disposal of held-for-sale assets | – | 1 |
Net restructuring provisions | 136 | – |
(Profit) Loss on disposal and written-off assets | (1) | – |
Other non-cash items | 34 | 11 |
Cash generated from operations | 121 | 294 |
Movement in working capital | (43) | (174) |
Closure and restructuring costs paid | (43) | – |
Finance costs paid | (13) | (39) |
Finance income received | 9 | 7 |
Taxation (paid) refund | (10) | (3) |
Cash generated from operating activities | 21 | 85 |
Cash utilised in investing activities | (90) | (62) |
Capital expenditure | (75) | (58) |
Proceeds on disposal of assets | 1 | – |
Proceeds on held-for-sale assets | – | 10 |
Other non-current and intangible asset movements | (16) | (14) |
Net cash (utilised) | (69) | 23 |
Cash effects of financing activities | (1) | (243) |
Proceeds from interest-bearing borrowings | 40 | – |
Repayment of interest-bearing borrowings | (35) | (238) |
Capital lease repayments | (6) | (5) |
Net movement in cash and cash equivalents | (70) | (220) |
Cash and cash equivalents at beginning of period | 601 | 780 |
Translation effects | 2 | 33 |
Cash and cash equivalents at end of period | 533 | 593 |
Hover over a row in the table to the left to populate this graph
Quarter ended | ||
US$ million | Dec 2023 | Dec 2022 |
Balance – beginning of period | 2,445 | 2,358 |
---|---|---|
Profit (Loss) for the period | (126) | 190 |
Other comprehensive income for the period | 25 | 70 |
Issue of shares | – | 3 |
Dividend –15 US cents | (84) | (85) |
Share-based payment reserve | 1 | 2 |
Balance – end of period | 2,261 | 2,538 |
Comprising | ||
Ordinary share capital and premium | 702 | 780 |
Non-distributable reserves | 115 | 115 |
Foreign currency translation reserves | (248) | (191) |
Hedging reserves | (47) | (51) |
Retained earnings | 1,739 | 1,885 |
Total equity | 2,261 | 2,538 |
Hover over a row in the table to the left to populate this graph
(this information has not been audited or reviewed)
General definitions
Average – averages are calculated as the sum of the opening and closing balances for the relevant period divided by two
Capital employed – shareholders’ equity plus net debt
Covenant leverage ratio – net debt divided by last 12 months' EBITDA excluding special items as defined by our bank covenants
EBITDA excluding special items – earnings before interest (net finance costs), taxation, depreciation, amortisation and special items
EPS excluding special items – earnings per share excluding special items and certain once-off finance and tax items
Fellings – the amount charged against the income statement representing the standing value of the plantations harvested
Headline earnings – as defined in circular 1/2021, issued by the South African Institute of Chartered Accountants in March 2021, which separates from earnings all separately identifiable remeasurements. It is not necessarily a measure of sustainable earnings
It is a Listings Requirement of the JSE Limited to disclose headline earnings per share
Interest cover – last 12 months' EBITDA excluding special items to net interest adjusted for refinancing costs
NBSK – Northern Bleached Softwood Kraft pulp. One of the main varieties of market pulp, produced from coniferous trees (ie spruce, pine) in Scandinavia, Canada and northern USA. The price of NBSK is a benchmark widely used in the pulp and paper industry for comparative purposes
Net assets – total assets less total liabilities
Net asset value per share – net assets divided by the number of shares in issue at balance sheet date
Net debt – current and non-current interest-bearing borrowings and lease liabilities, bank overdrafts less cash and cash equivalents
Net debt to EBITDA excluding special items – net debt divided by the last 12 months' EBITDA excluding special items
Net operating assets – total assets (excluding deferred tax assets and cash) less current liabilities (excluding interest-bearing borrowings, lease liabilities and overdraft)
Operating profit – profit from business operations before deduction of net finance costs and taxes
Non-GAAP measures – the group believes that it is useful to report certain non-GAAP measures for the following reasons:
These non-GAAP measures should not be considered in isolation or construed as a substitute for GAAP measures in accordance with IFRS
ROCE – annualised return on average capital employed. Operating profit excluding special items divided by average capital employed
RONOA – return on average net operating assets. Operating profit excluding special items divided by average net operating assets
Special items – special items cover those items which management believes are material by nature or amount to the operating results and require separate disclosure. Such items would generally include profit or loss on disposal of property, investments and businesses, asset impairments, restructuring charges, non-recurring integration costs related to acquisitions, financial impacts of natural disasters and settlement gains or losses on defined benefit obligations
The above financial measures are presented to assist our shareholders and the investment community in interpreting our financial results. These financial measures are regularly used and compared between companies in our industry
Summary Rand convenience translation
Quarter ended | |||
Dec 2023 | Dec 2022 | ||
Key figures (ZAR million) | |||
Sales | 23,821 | 29,226 | |
Operating profit excluding special items(1) | 1,611 | 3,961 | |
Special items – (gains) losses(1) | 3,352 | (106) | |
EBITDA excluding special items(1) | 2,921 | 5,106 | |
Profit for the period | (2,360) | 3,345 | |
Basic earnings per share (SA cents) | (422) | 591 | |
Net debt(1) | 22,249 | 21,112 | |
Key ratios (%) | |||
Operating profit excluding special items to sales | 6.8 | 13.6 | |
Operating profit excluding special items to capital employed (ROCE)(1) | 9.9 | 24.7 | |
EBITDA excluding special items to sales | 12.3 | 17.5 |
(1) | Refer to supplemental information for the definition of the term. |
The above financial results have been translated into Rand from US Dollar as follows:
Exchange rates
Dec 2023 |
Sept 2023 |
Jun 2023 |
Mar 2023 |
Dec 2022 |
||
Exchange rates: | ||||||
Period-end rate: US$1 = ZAR | 18.2969 | 18.9299 | 18.8338 | 17.7927 | 17.0119 | |
Average rate for the quarter: US$1 = ZAR | 18.7269 | 18.6387 | 18.6817 | 17.7489 | 17.6063 | |
Average rate for the year to date: US$1 = ZAR | 18.7269 | 18.1791 | 18.0221 | 17.6792 | 17.6063 | |
Period-end rate: €1 = US$ | 1.1037 | 1.0572 | 1.0912 | 1.0841 | 1.0704 | |
Average rate for the quarter: €1 = US$ | 1.0763 | 1.0881 | 1.0887 | 1.0729 | 1.0220 | |
Average rate for the year to date: €1 = US$ | 1.0763 | 1.0679 | 1.0612 | 1.0475 | 1.0220 |
Sappi share price - September 2021 to September 2023