Economic impact
The value-added statement shows the wealth created by the activities of the group and how it was distributed among stakeholders for the 2010 reporting period, taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations.
| Group | |||||
| 2010 | 2009 | ||||
| Rm | % | Rm | % | ||
| Revenue | 4 110.6 | 3 807.1 | |||
| Paid to suppliers for goods and services | 2 333.6 | 2 136.1 | |||
| VALUE ADDED BY OPERATING ACTIVITIES | 1 777.0 | 1 671.0 | |||
| DISTRIBUTED AS FOLLOWS: | |||||
| REMUNERATION TO EMPLOYEES | 607.4 | 34.2 | 542.0 | 32.4 | |
| RETURNS TO PROVIDERS OF CAPITAL: | 540.1 | 30.4 | 539.6 | 32.3 | |
| To provide lenders with a return on their capital utilised | 94.7 | 108.5 | |||
| To provide lessors with a return for the use of their premises | 161.0 | 146.8 | |||
| To provide shareholders with a return on their equity | 284.4 | 284.3 | |||
| TAXES PAID TO GOVERNMENTS | 252.3 | 14.2 | 221.4 | 13.3 | |
| Income taxation | 248.2 | 217.7 | |||
| Municipal rates | 4.1 | 3.7 | |||
| REINVESTED IN THE GROUP | 377.2 | 21.2 | 368.0 | 22.0 | |
| Depreciation and amortisation | 46.3 | 47.3 | |||
| Deferred taxation | 23.9 | 43.8 | |||
| Net earnings retained | 307.0 | 276.9 | |||
| TOTAL WEALTH DISTRIBUTED | 1 777.0 | 100.0 | 1 671.0 | 100.0 | |
Procurement and enterprise development
We strive to provide customers with differentiated, exclusive and value-for-money merchandise. To meet the needs of customers, merchandise is sourced from local suppliers and through imports, mainly from the Far East. While imports account for 24% of merchandise, the group continues to work in partnership with local suppliers to design merchandise which is appealing to the customer base.
A substantial volume of merchandise is procured from small businesses which are mainly black owned. Financial assistance is provided to some of these businesses while payment terms of 30 days support the cash flows of these suppliers.