Food and beverages final draft Final 121113 PP 4 To Senzile · Food and beverages industry, 2012 (Preliminary) Embargoed until: 19 November 2013 ... 20%) and ‘rental of land and

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Statistical release

P6421

Food and beverages industry, 2012

(Preliminary)

Embargoed until: 19 November 2013

14:30 Enquiries:

User Information Services 012 310 8600/8351

Statistics South Africa P6421


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Table of Contents 1. Summary of findings for the year 2012 ................................................................................................................................................................................................ 2 Figure 1 − Income in the food and beverages industry, 2012 ....................................................................................................................................................................... 2 Figure 2 − Profit margin in the food and beverages industry, 2012 .............................................................................................................................................................. 2 Figure 3 − Composition of expenditure in the food and beverages industry, 2012 ....................................................................................................................................... 3 Figure 4 − Capital expenditure on new assets in the food and beverages industry, 2012 ............................................................................................................................ 3 Figure 5 − Employment in the food and beverages industry, 2012 ............................................................................................................................................................... 4 Figure 6 − Gender ratios in the food and beverages industry, 2012 ............................................................................................................................................................. 4 2. Tables....................................................................................................................................................................................................................................................... 5 Table 1 – Principal statistics in the food and beverages industry, 2012 ........................................................................................................................................................ 5 Table 2 – Profit margin in the food and beverages industry, 2012 ................................................................................................................................................................ 5 Table 3 − Income in the food and beverages industry, 2012 ........................................................................................................................................................................ 6 Table 4 – Expenditure in the food and beverages industry, 2012 ................................................................................................................................................................. 7 Table 5 – Carrying value of assets at the end of the financial year in the food and beverages industry, 2012 ............................................................................................ 8 Table 6 – Details of assets in the food and beverages industry, 2012 .......................................................................................................................................................... 9 Table 7 – Details of liabilities and owners’ equity in the food and beverages industry, 2012 ..................................................................................................................... 10 Table 8 – Capital expenditure on new assets in the food and beverages industry, 2012 ........................................................................................................................... 11 Table 9 – Employment in the food and beverages industry, 2012 .............................................................................................................................................................. 12 Explanatory notes ...................................................................................................................................................................................................................................... 13 Table A – Size groups for the food and beverages industry........................................................................................................................................................................ 14 Table B – Income in the food and beverages industry within 95% confidence limits, 2012 ........................................................................................................................ 15 Glossary ...................................................................................................................................................................................................................................................... 17 General information ................................................................................................................................................................................................................................... 20



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1. Summary of findings for the year 2012

Figure 1 − Income in the food and beverages industry, 2012

Figure 2 − Profit margin in the food and beverages industry, 2012

Caterers and other catering services R8 714m (20%)

Takeaway and fast-food outlets

R13 751m (31%)

Restaurants and coffee shops

R21 797m (49%)

1,5%

2,3%

1,5%

1,9%

0,0% 0,5% 1,0% 1,5% 2,0% 2,5%

Restaurants andcoffee shops

Caterers and othercatering services

Total


The total income for the food and beverages industry in 2012 wasR44 262 million. The largest contributor to the total income was ‘restaurants and coffee shops’ (R21 797 million or 49%), followed by ‘takeaway and fast-food outlets’ (R13 751 million or 31%) (Figure 1 and Table 1, page 5).

The profit margin for the food and beverages industry was 1,9% in 2012. ‘Restaurants and coffee shops’ had the highest profit margin at 2,3%. ‘Takeaway and fast-food outlets’ and ‘caterers and other catering services’ both had a profit margin of 1,5% (Figure 2 and Table 2, page 5).



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Figure 3 − Composition of expenditure in the food and beverages industry, 2012

Figure 4 − Capital expenditure on new assets in the food and beverages

industry, 2012

Salaries and wages R8 760m (20%)

Rental of land and buildings

R2 467m (6%)

Royalties R1 686m (4%)

Purchases R21 470m (50%)

All other expenditure in the food and

beverages industry R8 748m (20%)

Plant, machinery and other office

equipment R730m (50%)

Other capital expenditure

R259m (17%)

Computer equipment and

software R75m (5%)

Vehicles R136m (9%)

Buildings and construction

R284m (19%)

Expenditure in the food and beverages industry in 2012 amounted to R43 131 million. The largest contributor to total expenditure was ‘purchases’ (R21 470 million or 50%), followed by ‘salaries and wages’’ (R8 760 million or 20%) and ‘rental of land and buildings’ (R2 467 million or 6%) (Figure 3 and Table 4, page 7).

The total capital expenditure on new assets in the food and beverages industry in 2012 was R1 484 million. The largest category of capital expenditure was ‘plant, machinery and equipment’ (R730 million or 50%), followed by ‘buildings and construction’ (R284 million or 19%) and vehicles (R136 million or 9%) ( (Figure 4 and Table 8, page 11).



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Figure 5 − Employment in the food and beverages industry, 2012 Figure 6 − Gender ratios in the food and beverages industry, 2012

Caterers and other catering services

38 400 (20%)


53 991 (28%)


100 498 (52%)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total

Restaurants and coffeeshops

Takeaway and fast-foodoutlets

Caterers and other cateringservices

Male Female

The total number of persons employed in the food and beverages industry at the end of June 2012 was 192 889. ‘Restaurants and coffee shops’ employed the largest number of persons (100 498 or 52%), followed by ‘takeaway and fast-food outlets’ (53 991 or 28%) (Figure 5 and Table 9, page 12).

The proportion of females out of the total persons employed was 61%. The industry with the highest proportion of females employed was ‘takeaway and fast-food outlets’ (66%) (Figure 6 and Table 9, page 12).

PJ Lehohla Statistician-General



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2. Tables

Table 1 – Principal statistics in the food and beverages industry, 2012

Type of service

Total income Total expenditure

Capital expenditure

on new assets

Total value of opening

inventories

Total value of closing

inventories

Net profit loss before

tax

Carrying value of

assets at the beginning of

the year

Carrying value of

assets at the end of the

year

R million

Restaurants and coffee shops 21 797 21 116 550 571 595 705 3 557 3 417

Takeaway and fast-food outlets 13 751 13 408 799 152 171 363 2 975 3 225

Caterers and other catering services 8 714 8 607 135 163 221 166 779 763

Total 44 262 43 131 1 484 886 987 1 234 7 311 7 405

Table 2 – Profit margin in the food and beverages industry, 2012

Type of service

Net profit/loss after tax Turnover Profit margin1

R million

Restaurants and coffee shops 482 21 298 2,3

Takeaway and fast-food outlets 200 13 557 1,5

Caterers and other catering services 131 8 600 1,5

Total 813 43 455 1,9 1 Net profit after tax divided by turnover multiplied by 100.



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Table 3 − Income in the food and beverages industry, 2012

Type of service Sales Services Lease income Interest received Other income Total income

R million

Restaurants and coffee shops 20 936 283 79 43 456 21 797

Takeaway and fast-food outlets 13 365 18 174 47 147 13 751

Caterers and other catering services 8 110 478 12 22 92 8 714

Total 42 411 779 265 112 695 44 262



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Table 4 – Expenditure in the food and beverages industry, 2012

Item



Caterers and other catering services Total

R million

Purchases 10 072 6 468 4 930 21 470

Salaries and wages 4 423 2 123 2 214 8 760

Advertising 469 507 47 1 023

Depreciation 552 420 155 1 127

Royalties 772 854 60 1 686

Rental of land and buildings 1 495 743 229 2 467

Water and electricity 494 354 88 936

Repair and maintenance 333 167 80 580

Other expenditure 2 506 1 772 804 5 082

Total expenditure 21 116 13 408 8 607 43 131



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Table 5 – Carrying value of assets at the end of the financial year in the food and beverages industry, 2012

Type of service Land, buildings

and construction

Computers and other IT equipment

Vehicles

Plant, machinery

and equipment

Intangible assets Other assets

Total carrying

value of fixed assets

R million

Restaurants and coffee shops 506 118 235 1 496 889 173 3 417

Takeaway and fast-food outlets 854 83 149 1 209 876 54 3 225

Caterers and other catering services 188 14 152 270 124 15 763

Total 1 548 215 536 2 975 1 889 242 7 405



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Table 6 – Details of assets in the food and beverages industry, 2012

Type of service

Current assets Non-current assets

Total assets

Bank Debtors Inventory Other Total

Fixed non-

current assets

Goodwill Long-term investment

Other

Total

R million

Restaurants and coffee shops 736 401 600 278 2 015 2 580 827 605 505 4 517 6 532

Takeaway and fast-food outlets 538 378 176 364 1 456 2 423 815 377 1 007 4 622 6 078

Caterers and other catering services 515 724 219 38 1 496 646 114 153 151 1 064 2 560

Total 1 789 1 503 995 680 4 967 5 649 1 756 1 135 1 663 10 203 15 170



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Table 7 – Details of liabilities and owners’ equity in the food and beverages industry, 2012

Type of service

Current liabilities Non-current liabilities

Total liabilities

Owners' equity

Liabilities and

owners’ equity Creditors Overdraft Other Total

Long-term loans

Other

Total

R million

Restaurants and coffee shops 1 162 156 856 2 174 2 439 1 101 3 540 5 714 818 6 532

Takeaway and fast-food outlets 822 33 680 1 535 842 1 601 2 443 3 978 2 100 6 078

Caterers and other catering services 595 65 479 1 139 496 244 740 1 879 681 2 560

Total 2 579 254 2 015 4 848 3 777 2 946 6 723 11 571 3 599 15 170



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Table 8 – Capital expenditure on new assets in the food and beverages industry, 2012



Caterers and other catering services Total

Type of asset R million

Buildings and construction 46 225 13 284

Computer equipment and software 38 34 3 75

Vehicles 53 37 46 136

Plant, machinery and other office equipment 312 360 58 730

Other capital expenditure 98 145 16 259

Total capital expenditure on new assets 547 801 136 1 484



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Table 9 – Employment in the food and beverages industry, 2012

Employment type Restaurants and coffee

shops Takeaway and fast-food

outlets Caterers and other catering

services Total

Number

Permanent

Male 34 811 17 192 12 987 64 990

Female 51 178 32 759 19 827 103 764

Total 85 989 49 951 32 814 168 754

Temporary

Male 2 046 499 806 3 351

Female 3 833 935 1 256 6 024

Total 5 879 1 434 2 062 9 375

Casual

Male 4 123 877 1 752 6 752

Female 4 507 1 729 1 772 8 008

Total 8 630 2 606 3 524 14 760

Total

Male 40 980 18 568 15 545 75 093

Female 59 518 35 423 22 855 117 796

Total 100 498 53 991 38 400 192 889



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Explanatory notes Background The results presented in this publication have been derived from the 2012 food and beverages industry large sample survey. This is a periodic

survey, which measures economic activity in the food and beverages industry of the South African economy. The survey is based on a sample of private and public enterprises operating in the food and beverages industry. The sample was drawn from Stats SA’s business register. Stats SA continuously updates its business register, based on units registered for value added tax (VAT) and income tax (IT) at the South African Revenue Service (SARS). All figures exclude VAT.

Reference period The information was collected from enterprises for their financial year which ended on any date between 1 July 2011 and 30 June 2012. Purpose of the survey Results of the survey are used within Stats SA for compiling South Africa’s national accounts, e.g. the gross domestic product (GDP) and

gross fixed capital formation. These statistics are also used by the private sector in analyses of comparative business and industry performance.

Scope and coverage

This survey covers the following income tax-registered and value added tax-registered private and public enterprises that are mainly engaged in the food and beverages industry: i. Restaurants, coffee shops or tearooms, with liquor licence (SIC 64201). ii. Restaurants, coffee shops or tearooms, without liquor licence (SIC 624202). iii. Takeaway counters and fast-food outlets (SIC 64203). iv. Caterers (SIC 64204). v. Other catering services (SIC 64209).

Classification by industry

The 1993 edition of the Standard Industrial Classification of all Economic Activities (SIC), Fifth Edition, Report No. 09-09-02, was used to classify the statistical units in the survey. The SIC is based on the 1990 International Standard Industrial Classification of all Economic Activities (ISIC) with suitable adaptations for local conditions. Statistics in this publication are presented at 4-digit SIC level (group). Each enterprise is classified to an industry which reflects its predominant activity.

Statistical unit The statistical unit for the collection of the information is an enterprise. An enterprise is a legal unit (or a combination of legal units) that includes and directly controls all functions necessary to carry out its activities.



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Size groups The enterprises are divided into four size groups according to the value of their business register turnover. Large enterprises are enterprises with an annual turnover of R26 million and more. Table A presents the size group cut-off points defined using the Department of Trade and Industry (DTI) cut-off points multiplied by 2.

Table A – Size groups for the food and beverages industry Size group Turnover

Large ≥ R26 000 000

Medium R13 000 000 ≤ VAT turnover < R26 000 000

Small R3 000 000 ≤ VAT turnover < R13 000 000

Micro < R3 000 000

Survey methodology and design

The survey was conducted by post, email, fax, telephone and personal visits. A sample size of approximately 2 000 enterprises was drawn using stratified simple random sampling. The enterprises were first stratified at 5-digit level according to the SIC and then by size of enterprise. All large enterprises were completely enumerated. Business register turnover was used as the measure of size for stratification. The collection rate was 81,0%.

Collection rate Collection rate=((collected + finalised investigations) / sample size) x 100. Weighting methodology

For medium, small and micro enterprises, that is those who were not completely enumerated, the weights to produce estimates are the inverse ratio of the sampling fraction, modified to take account of non-response in the survey. Stratum estimates were calculated and then aggregated with the completely enumerated stratum to form group estimates. These procedures, which are in line with international best practice, are described in more detail on the Stats SA website at www.statssa.gov.za/publications/publicationsearch.asp.

Relative standard error Data presented in this publication are based on information obtained from a sample and are, therefore, subject to sampling variability; that is,

they may differ from the figures that would have been produced if the data had been obtained from all enterprises in the food and beverages industry in South Africa. One measure of the likely difference is given by the standard error (SE), which indicates the extent to which an estimate might have varied by chance because only a sample of enterprises was used. The relative standard error (RSE) provides an immediate indication of the percentage errors likely to have accrued due to sampling.



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Table B – Income in the food and beverages industry within 95% confidence limits, 2012

Type of service

Lower limit

Total income

Upper limit

Relative standard

error R million %

Restaurants and coffee shops 20 344 21 797 23 250 3,4

Takeaway and fast-food outlets 12 835 13 751 14 667 3,4

Caterers and other catering services 8 099 8 714 9 329 3,6

Total 42 437 44 262 46 087 2,1

Non-sampling errors Inaccuracies may occur because of imperfections in reporting by enterprises and errors made in the collection and processing of the data. Inaccuracies of this kind are referred to as non-sampling errors. Every effort is made to minimise non-sampling errors by careful design of questionnaires, testing them in pilot studies, editing reported data and implementing efficient operating procedures. Non-sampling errors occur in both sample surveys and censuses.

Rounding-off of figures

The figures in the tables have, where necessary, been rounded off to the nearest final digit shown. There may therefore be slight discrepancies between the sums of the constituent items and the totals shown.



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Symbols and abbreviations

BR Business register

DTI Department of Trade and Industry

GDP Gross domestic product

ISIC International Standard Industrial Classification of all Economic Activities

IT Income tax

RSE Relative standard error

SARS South African Revenue Service

SE Standard error

SIC Standard Industrial Classification of all Economic Activities

SNA System of National Accounts

Stats SA Statistics South Africa

VAT Value added tax

0 Nil or less than half the final digit shown



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Glossary Casual employees Casual employees are employees who fall neither within the ‘permanent employees’ category nor the ‘temporary employees’

category. Such employees are typically working daily or hourly. Current assets

Assets on the balance sheet which are expected to be sold or otherwise used up in the near future, usually within one year. They include:

• trade and other receivables; • cash and bank; • inventories; and • other current assets.

Current liabilities Current liabilities are debts or obligations that are due within one year. They include:

• trade and other payables; • bank overdraft; and • other current liabilities.

Enterprise The enterprise is a legal entity or a combination of legal units that includes and directly controls all functions necessary to carry out its

activities. Industry An industry consists of a group of enterprises engaged in the same or similar kinds of economic activity. Industries are defined in the

System of National Accounts (SNA) in the same way as in the Standard Industrial Classification of all Economic Activities, fifth edition, Report No. 09-90-02 of January 1993 (SIC).

Labour brokers Agents who recruit and administer workers on behalf of the enterprise. They do not provide any other service. Motor vehicles Motor vehicles includes motor vehicles, trucks, aircraft, boats, trailers, locomotives and other transport equipment. Net profit or loss after tax

Net profit or loss after tax is derived as: Total income plus closing value of inventories minus total expenditure minus opening value of inventories minus company tax



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Net profit or loss before tax

Net profit or loss before tax is derived as: Total income plus closing value of inventories minus total expenditure minus opening value of inventories

Non-current assets Non-current assets are assets which are not easily convertible to cash or not expected to become cash within the next year. They

include:

• property, plant and equipment and intangible assets; • long-term investments; and • other non-current assets.

Non-current liabilities Non-current liabilities are liabilities not due to be paid within one year during the normal course of business. They include:

• long-term loans; and • other non-current liabilities.

Other expenditure Other expenditure includes:

• accommodation; • administration fees; • advertising; • amortisation; • bank charges; • bursaries; • computers and other IT expenditure; • containers and packaging materials; • donations, sponsorships and social investment; • entertainment; • excise and customs duty; • insurance; • losses on liabilities; • losses on foreign exchange; • mineral rights leases; • motor vehicle running expenditure; • paper, printing and stationery;

• postal and courier services; • property tax; • provisions; • rental of land and buildings; • rental of plant, machinery and equipment; • research and development; • road tolls; • royalties; • security services (including IT security services); • severance, termination and redundancy payments; • skills development levy; • staff training; • subscriptions; • travelling; • water and electricity; and • other expenditure.



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Other income Other income includes: • capital transfers received; • mineral rights leases; • profit for redemption, liquidation or revaluation of

liabilities; • profit on foreign exchange as a result of variations in

foreign exchange rates; • provisions;

• royalties; • income received by an agent to be paid to another party

for services rendered by that party; • excise and customs duty received by an agent to be paid

to the relevant authority on behalf of a client; and • other income.

Owners’ equity Owners’ equity is the residual interest in the entity’s assets after deducting its liabilities.

Permanent employees Permanent employees are employees appointed on an open-ended contract with no stipulated termination date or a fixed-term

contract for periods of more than one year Profit margin Profit margin is derived as:

Net profit after tax divided by turnover multiplied by 100

Statistical unit A statistical unit is a unit about which statistics are tabulated, compiled or published. The statistical units are derived from and linked

to the South African Revenue Service (SARS) administrative data. Stratum A stratum is constructed by concatenating the SIC classification and size group variables. Temporary employees Temporary employees are employees appointed on a short-term contract basis with a stipulated termination date for periods not

exceeding one year Turnover Turnover includes:

• value of sales of goods; • amount received for services rendered; • rent and lease payments received for land and buildings; and • rent, leasing and hiring received for machinery, vehicles and other equipment.



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General information Stats SA publishes approximately 300 different statistical releases each year. It is not economically viable to produce them in more than one of South Africa's eleven official languages. Since the releases are used extensively, not only locally but also by international economic and social-scientific communities, Stats SA releases are published in English only.

Stats SA has copyright on this publication. Users may apply the information as they wish, provided that they acknowledge Stats SA as the source of the basic data wherever they process, apply, utilise, publish or distribute the data; and also that they specify that the relevant application and analysis (where applicable) result from their own processing of the data.

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Documents

Food and beverages final draft Final 121113 PP 4 To Senzile · Food and beverages industry, 2012 (Preliminary) Embargoed until: 19 November 2013 ... 20%) and ‘rental of land and