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SouthAfricanBrewerie (SAB)

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Monday 06 November, 2000

SouthAfricanBrewerie

ABI Interim Results

South African Breweries PLC
6 November 2000


SOUTH AFRICAN BREWERIES PLC
(INCORPORATED IN ENGLAND AND WALES REGISTERED NUMBER 3528416)

Business Briefing

ABI INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2000

SAB's subsidiary, Amalgamated Beverage Industries Limited (ABI), has reported
its interim results in Johannesburg for the six months ended 30 September
2000.  The text of ABI's announcement follows and it should be noted that the
interim results have been prepared in accordance with South African generally
accepted accounting practice.

Enquiries to:
Dr Alan Clark
Managing Director of ABI
Telephone: +27 11 719 1453


AMALGAMATED BEVERAGE INDUSTRIES LIMITED

(Registration number 1970/006820/06)

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2000

Headline earnings per share up        21%
Dividend per share increased by       20% 
Cash flow from operations improves by 104% 

INCOME STATEMENTS
                             Half year    Half year            Year
                             September    September            March
                             2000         1999                 2000
                             (unaudited)  (unaudited)  Change  (audited)
                             Rm           Rm           %       Rm
Turnover                     1 583        1 568        1%      3 572
Trading profit before
goodwill amortisation        131          125          5%      460
Goodwill amortisation        (39)         (39)                 (78)
Trading profit after
goodwill amortisation        92           86                   382
Net financing costs          (13)         (33)                 (50)
Dividend income              10           13                   28
Equity accounted retained
earnings of associate        11           9                    21
Profit before taxation       100          75                   381
Taxation                     (32)         (25)                 (84)
Earnings attributable to
ordinary shareholders        68           50                   297
Earnings per share (cents)
Attributable earnings basis  44,7         33,2                 196,2
Headline earnings basis      70,9         58,5         21%     249,4
Dividends per ordinary
share (cents)                27,5         23,0         20%     123,0
Reconciliation of headline 
earnings (Rm)
Attributable earnings        68           50                   297
Loss on sale of fixed assets 1            -                    3
Amortisation of goodwill     39           39                   78
Headline earnings            108          89           21%     378
Weighted average number
of ordinary shares in
issue (millions)             152          151                  151
Number of ordinary shares 
in issue (millions)          152          152                  152

CASH FLOW STATEMENTS
                                        Half year    Half year    Year
                                        September    September    March
                                        2000         1999         2000
                                        (unaudited)  (unaudited)  (audited)
                                        Rm           Rm           Rm
Cash retained from
operating activities
Trading profit before amortisation      131          125          460
Depreciation and non-cash items         79           87           176
Change in working capital               68           (66)         (79)
Dividend income                         10           13           28
Cash generated from
operating activities                    288          159          585
Net interest paid                       (13)         (33)         (53)
Taxation paid                           (69)         (25)         (77)
Cash flow from operations               206          101          455
Dividends paid                          (152)        (7)          (42)
Net cash retained                       54           94           413
Cash utilised in investment activities
Net investment to maintain operations   6            14           72
Investment in returnable
bottles and crates                      6            23           39
Net investment to expand operations     77           127          171
Net cash invested                       89           164          282
Financing activities
Increase in interest bearing debt       77           22           (132)
Increase/(decrease) in liquid resources 42           (48)         (1)
At beginning of period                  49           50           50
At end of period                        91           2            49
Increase/(decrease) in liquid resources 42           (48)         (1)

BALANCE SHEETS
                                        Half year    Half year    Year
                                        September    September    March
                                        2000         1999         2000
                                        (unaudited)  (unaudited)  (audited)
                                        Rm           Rm           Rm
Shareholders' funds                     2 360        2 238        2 334
Interest bearing debt                   351          428          274
Total capital employed                  2 711        2 666        2 608
Goodwill                                1 380        1 458        1 419
Operating assets                        1 080        1 017        1 059
Investment in associate                 154          131          143
Other investments                       21           22           21
                                        2 635        2 628        2 642
Returnable bottles and crates           362          384          373
Inventories                             215          204          181
Debtors                                 318          314          351
Liquid resources                        91           2            49
Total assets                            3 621        3 532        3 596
Interest free liabilities
Current                                 785          718          863
Deferred                                125          148          125
                                        910          866          988
Net assets                              2 711        2 666        2 608
Gearing ratio
Net interest bearing debt to
total shareholders' funds               0,11         0,19         0,10
Capital expenditure (Rm)
Incurred                                99           171          309
Contracted                              34           5            -
Authorised but not yet contracted       48           112          210
Fair value of associate (Rm)            449          443          386
Net worth per ordinary share (cents)    1 551        1 471        1 534

STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS' EQUITY
                                        Half year    Half year    Year
                                        September    September    March
                                        2000         1999         2000
                                        (unaudited)  (unaudited)  (audited)
                                        Rm           Rm           Rm
Shareholders' funds at beginning of 
period as previously reported           2 334        2 250        2 250
Prior period adjustment in 
respect of goodwill amortisation                     (65)         (65)
Shareholders' funds as restated         2 334        2 185        2 185
Changes in ordinary share capital       -            125          125
Changes in non-distributable reserves
Decrease in share election reserve      -            (86)         (86)
Changes in retained surplus
Earnings attributable to 
ordinary shareholders                   68           50           297
Ordinary dividends                      (42)         (36)         (187)
Shareholders' funds at end of period    2 360        2 238        2 334

COMMENTARY

FINANCIAL RESULTS
The expected upturn in sales did not materialise during the first half of the
year. The trading environment continues to be adversely affected by a shift in
consumer spending patterns and by substantial increases in commuter transport
costs. 
As a consequence, there was a decline of 3% in sales volumes during the
period.
Ongoing synergistic benefits from the Suncrush acquisition and containment of
costs, together with improved efficiencies, gave rise to a 5% increase in
trading profits. Headline earnings growth of 21% was boosted by a R20 million
reduction in net financing costs. Despite higher cash dividends and tax
payments, net borrowing ended at R260 million compared to R426 million at the
previous interim reporting period.

INTERIM DIVIDEND
In line with the rise in earnings per share, the directors hereby declare an
interim  dividend of 27,5 cents per share (1999: 23,0 cents per share), an
increase of 20%. This dividend will be payable in cash out of profits as
determined by the directors.  The dividend will be paid on or about 29
December 2000 to shareholders registered in the books of the company at the
close of business on 24 November 2000.

ACCOUNTING POLICIES
The directors remain of the opinion that the purchased goodwill has an
indefinite life. However, the recently effected South African accounting
statement, AC 131: Business Combinations, requires that goodwill be amortised.
The accounting policy relating to the treatment of goodwill has thus been
changed.
Consequently, goodwill in the balance sheet at 31 March 2000 is now being
amortised over 20 years from date of acquisition. The effect of this change
has been a charge to the income statement of R39 million during the current
interim reporting period. Results for the prior interim period and full year
have also been restated for comparative purposes.
Headline earnings per share exclude the impact of the goodwill amortisation.
Except for the above change, the accounting policies followed in the
preparation of the interim financial statements are consistent with those used
in the annual financial statements at 31 March 2000.

PROSPECTS
The effective tax rate for the full year ended 31 March 2001 is expected to
approximate the 25% of the first six months, compared to only 19% for the
previous full year.   
Recent sales trends are more encouraging than those prevailing during the
earlier part of the year. Should this continue, and given normal weather
patterns, this will result in a positive growth in sales volumes for the full
year.

By order of the board

D.A. Butler
Company Secretary

3 November 2000

Directorate and administration
Chairman: E.A.G. Mackay. 
Non-executive Directors: N.J. Adami, M.P. Adonisi, P.M. Bester
   (Alt. J.F. Buchanan), J.A. Mabuza, M.I. Wyman (British)
Executive Directors: A.J. Clark (Managing Director), B.S. Allison, M.S. Bind,
   G.S. Brockett, A.J. Parker
Company Secretary: D.A. Butler 

Registered office:
ABI House
14 Pongola Crescent
Eastgate Extension 17
Sandton 2199
PO Box 76202
Wendywood 2144

Transfer secretaries:
Mercantile Registrars Ltd
10th Floor, 
11 Diagonal Street
Johannesburg 2001
PO Box 1053
Johannesburg 2000

www.abi.co.za