STRATEGY
These results reflect progress with Imperial’s previously espoused intent to decouple the Group’s
performance from the cyclicality of South African new vehicle sales, by investing in, or developing,
less correlated businesses where our experience and expertise enables us to provide value in new
markets and geographies.
This strategy resulted in non-vehicle revenue increasing 20% to R45,5 billion (44% of group revenue)
with foreign revenue increasing 26% to R35,1 billion (34% of group revenue). Non-vehicle operating
profit increased 26% to R3,3 billion (54% of group operating profit) and operating profit from foreign
operations increased 30% to R1,6 billion (27% of group operating profit), while operating profit from
African operations outside of South Africa increased 32% to R523 million.
In addition the group enhanced its portfolio by exiting sub scale operations and investing in assets
and acquisitions that will enhance growth, returns and sustainability for our stakeholders.
These results also reflect the start of a more recent drive to eliminate complexity in the management
and reporting of Imperial. In this regard the group’s three major lines of business: logistics; vehicles; and
financial services (respectively generating 35%, 48% and 17% of group operating profit) will be managed
through five divisions: Logistics Africa (including South Africa); Logistics International (all non-African
countries); Vehicle Import, Distribution and Dealerships; Vehicle Retail, Rental and Aftermarket Parts (which
will now include Car Rental and Aftermarket Parts previously reported on separately); and Financial Services. |