ReclaimHub — Projected Profit & Loss

The projected profit and loss and the revenue, margin and profitability trajectory underpinning ReclaimHub.

ReclaimHub Business PlanSection 18 › Projected Profit & Loss

Section 18 · Business Plan

Projected Profit & Loss

The projected profit and loss and the revenue, margin and profitability trajectory underpinning ReclaimHub.

The independent income statement carries the sponsor revenue and
EBITDA and adds the re-derived depreciation, interest and tax. It shows
the business net loss-making for two years before turning strongly
profitable, with cumulative five-year net profit of R1.57bn.

Line item (R m) Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 220 680 1,600 3,200 5,700
Cost of goods sold (102) (299) (691) (1,347) (2,350)
Credit impairment (3) (15) (37) (84) (162)
Store & corporate operating costs (155) (272) (452) (719) (1,087)
EBITDA (40) 95 420 1,050 2,100
Depreciation & amortisation (36) (69) (102) (140) (200)
Net interest (75) (140) (165) (221) (332)
Profit before tax (151) (114) 153 689 1,568
Taxation -0 -0 (8) (148) (423)
Net profit after tax (151) (114) 145 541 1,145
Figure 15
Figure 15: From EBITDA to net profit — depreciation, interest and tax drag

Two features stand out. First, the gap between EBITDA and net profit
is wide and persistent: depreciation rises to R200m and interest to
R332m by Year 5, of which warehouse interest alone reaches R277m — a
cost entirely invisible in an EBITDA-only presentation. Second, the
assessed-loss carry-forward from the Year 1–2 losses shelters most of
the Year-3 tax charge, a genuine cash benefit that the model captures
explicitly.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of ReclaimHub Retail Group (Pty) Ltd.