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SouthAfricanBrewerie (SAB)

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Tuesday 16 May, 2000

SouthAfricanBrewerie

ABI'S Interim Results - 6 Months to 31 March 2000

South African Breweries PLC
16 May 2000


South African Breweries plc
(Incorporated in England and Wales Registered Number 3528416)

Business Briefing

ABI INTERIM RESULTS FOR THE YEAR ENDED 31 MARCH 2000

SAB's 65% owned subsidiary, Amalgamated Beverage Industries Limited (ABI), has
reported its preliminary results in Johannesburg for the year ended 31 March
2000. The text of ABI's announcement follows and it should be noted that the
preliminary results have been prepared in accordance with South African
generally accepted accounting practice. 

Enquiries to:
Mr E T Odgers
Managing Director of ABI
Telephone: +2711 7191400


Amalgamated Beverage Industries Limited
Registration number 70/06820/06

Turnover growth of 6%
Attributable earnings increase by 25% to R375 million
Headline earnings per share up 15%
Dividends per share increased by 14%
Gearing decreases to 9%

Audited Annual Results for the year ended 31 March 2000
INCOME STATEMENTS
                                                                              
                           2000             1999                %
                             Rm              Rm            Change
Turnover                  3 572           3 363                 6
Trading profit              460             454                 1
Dividend income              28              20           
Net interest paid            50              61                               
Profit before taxation      438             413                 6
Taxation                     84             136               
                            354             277
Equity accounted 
 retained earnings           21              23                               
Earnings attributable 
 to ordinary shareholders   375             300               25
Weighted average number of 
 ordinary shares in 
 issue (millions)         151,4           141,5
Earnings per  share (cents)
Attributable earnings 
 basis                    247,7           212,0              17
Goodwill written off                       03,7           
Loss on sale of 
 fixed assets               1,7             0,4                               
Headline earnings basis   249,4           216,1              15
Dividends per share (cents)
- interim                  23,0            19,0                               
- final                   100,0            89,0                               
                          123,0           108,0              14
Number of ordinary shares 
in issue at end of 
year (millions)           152,1          149,4                2



CASH FLOW STATEMENTS
                                                                              
                                2000            1999
                                 Rm              Rm
Cash retained from 
operating activities
Trading profit                  460              454
Depreciation and amortisation   156              184
Other non-cash items             20               27
Increase in net working capital (79)             (75)
Dividend income                  28               20
Cash generated from 
operating activities            585              610
Net interest paid               (53)             (55)
Taxation paid                   (77)            (161)
Cash flow from operations       455              394
Dividends paid                  (42)              (3)
Net cash retained               413              391
Cash utilised in
investment activities
Investment to maintain and 
upgrade operations              (72)             (61)
Investment in returnable bottles
and crates                      (39)            (129)
Investment to expand 
operations                     (168)            (224)
Cash outlay on the acquisition of
Suncrush business                (3)            (721)
Net cash invested              (282)          (1 135)
Financing activities
Decrease in interest 
bearing debt                   (132)             401
Decrease in liquid resources     (1)            (343)
Attributable cash flow per 
ordinary share  (cents)       300,4           278,4


CASH VALUE ADDED STATEMENTS

                                                                              
                               2000            1999
                                 Rm              Rm
Cash generated
Cash derived from sales       3 569           3 345
Income from investment           28              20
Cash value generated          3 597           3 365
Cash payments outside the
group to suppliers of materials, 
facilities and services      (2 344)         (2 107)
Cash value added              1 253           1 258
Cash utilised to:
Remunerate employees for their
services                        534             500
Pay direct and excise taxes to 
the state                       211             309
Provide lenders with a return
on borrowings                    53              55
Provide shareholders with 
cash dividends                   42               3
Cash dispersed among 
stakeholders                    840             867
Cash retained in the business
From shareholders in exchange
for capitalisation share awards  86              86
Further retentions              327             305
Available to fund the replacement
of assets and facilitate growth 413             391
Beneficiaries                                                                 
                                  %                %
Employees                      42,6             39,7
Retentions                     26,1             24,2
State                          16,9             24,6
Lenders                         4,2              4,4
Shareholders                   10,2              7,1
                               100,0           100,0
BALANCE SHEETS
                                2000            1999
                                  Rm              Rm
Shareholders' funds            2 477           2 250
Interest bearing debt            274             406
Total capital employed         2 751           2 656
Goodwill                       1 562           1 559
Fixed assets                   1 059             944
Investment in associate          143             123
Other investments                 21              22
                               2 785           2 648
Returnable bottles and crates    373             383
Inventories                      181             191
Debtors                          351             419
Liquid resources                  49              50
Total assets                   3 739           3 691
Interest free liabilities
Current                          863             887
Deferred                         125             148
                                 988           1 035
Net assets                     2 751           2 656
Gearing ratio                                
Net interest bearing debt to total
shareholders' funds             0,09            0,16

Capital expenditure                                                           
                                  Rm              Rm
Incurred                                 
    Suncrush acquisition           3           1 973
    Other                        306             414
Contracted                         -               5
Authorised not contracted        210             340
Fair value of associate          386             343
Net worth per ordinary
 share (cents)               1 628,2         1 505,8

STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS' EQUITY
                                                                              
                                2000            1999
                                  Rm              Rm
Ordinary shareholders' equity at
the beginning of the year      2 250             832
Changes in ordinary share capital
Share capital issued               -               1
Increase in share premium        125           1 249
Changes in non-distributable reserves
Unrealised surplus on revaluation of
fixed assets                       -               1
Share election reserve decrease  (86)             28
Changes in retained surplus
Earnings attributable to ordinary 
shareholders                     375             300
Ordinary dividends              (187)           (161)
Ordinary shareholders' equity at
the end of the year            2 477           2 250

COMMENTS
The Suncrush operations were acquired on 8 June 1998 and their results have
been incorporated from then into the ABI
results.  

Sales
The expected upturn in sales volumes did not materialise. Sales remained under
pressure until the end of the year, mainly as a result of abnormally cool and
wet weather between December 1999 and March 2000. Volumes for the quarter to
March 2000 ended 16% down on the same quarter in 1999. For the year as a whole
comparable volumes were a disappointing 6% lower.

Financial performance
The lower than expected volumes put pressure on trading margins, especially in
the light of the fixed component of ABI's cost base. One-off rationalisation
costs were absorbed during the course of the year.  

The net effect is a trading profit of R460 million,  marginally up on prior
year. 

Lower interest and tax charges, together with an increase of 14% in dividends
and earnings from the associate Coca-Cola Canners, resulted in an attributable
earnings growth of 25% to R375 million. The significant reduction in the
effective tax rate is attributable to the reduction in the company tax rate,
utilisation of tax losses and reversal of prior year provisions.

Headline earnings of 249,4 cents per share, calculated on 151,4 million shares
in issue, increased by 15% on prior year. 

Dividends
A final dividend of 100 cents per share has been declared. This will be
payable out of profits as determined by the directors. Together with the
interim dividend of 23 cents, the total annual dividend of 123 cents per share
is 14% higher than last year, which is in line with the earnings per share
increase.

Prospects
Prospects for volume growth in the coming year are encouraging, especially in
the light of anticipated improvements in the economy and sales coming off a
low base.

ABI's manufacturing infrastructure is in place and can produce significantly
higher volumes without further investments or increase in operating costs.
The majority of the Suncrush integration and rationalisation costs have been
incurred and the company has already started to reap the benefits.

This augurs well for continued growth in earnings in the coming year. 

By order of the board
DA Butler
Company Secretary

Johannesburg
15 May 2000

Chairman:  MH Simms   Non-executive Directors:  MP Adonisi,  PM Bester, (Alt.
JF Buchanan),  NG Cox,  JA Mabuza,  EAG Mackay,  MI Wyman (British)  Executive
Directors:  ET Odgers (Managing Director),  BS Allison,  MS Bind,  
JM Busschau,  GW Comrie,  AJ Parker
Registered office:  ABI House,  14 Pongola Crescent,  Eastgate Extension 17, 
Sandton 2199.  PO Box 76202,  Wendywood 2144
Transfer secretaries:  Mercantile Registrars Limited,  10th Floor, 11 Diagonal
Street,  Johannesburg 2001.  PO Box 1053,  Johannesburg 2000