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SouthAfricanBrewerie (SAB)

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Thursday 10 May, 2001

SouthAfricanBrewerie

Subsidiary Preliminaries

South African Breweries PLC
10 May 2001


                         South African Breweries plc

                          Registered Number 3528416


ABI  PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2001

SAB's subsidiary, Amalgamated Beverage Industries Limited (ABI), has reported
its preliminary results in Johannesburg for the year ended 31 March 2001.  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 :
Dr Alan Clark
Managing Director of ABI
Telephone: +27 11 719 1400


Amalgamated Beverage Industries Limited

Registration number 1970/006820/06

1976 - 2001

25 years


Audited Annual Results 2001 for the year ended 31 March

Attributable earnings increase by 23% to R363 million

Headline earnings per share up 17%

Dividends per share increase by 17%

Cash flow from operations up by 31%

Interest bearing debt extinguished



Income Statements



                                                            2001   2000 %change
                                                              Rm     Rm      Rm

Revenue                                                    3,799  3,572       6
Trading profit                                               487    380      28
Share of Associate's earnings                                 51     49
Net financing costs                                         (17)   (50)
Profit before taxation                                       521    379
Taxation                                                     158     84
Earnings attributable to ordinary                            363    295      23

Shareholders
Ordinary dividends                                           219    187
Retained earnings for the year                               144    108
Earnings per share (cents)
Headline earnings basis                                    289.6  248.3      17
Attributable earnings basis                                238.3    195      22
Dividends per ordinary share (cents
-interim                                                    27.5     23
-final                                                     116.5    100
-total for the year                                        144.0    123      17
Reconciliation of headline earnings
Attributable earnings                                        363    295      23
Goodwill amortisation                                         78     78
Loss on sale of fixed assets                                   -      3
Headline earnings basis                                      441    376      17
Weighted average number of shares in issue (millions)        152    151
Number of ordinary shares in issue at end of year            152    152
(millions)



Cash Flow Statements

                                                                 2001     2000
                                                                   Rm       Rm
Cash retained from operating activities

Trading profit                                                    487      380
Depreciation and amortisation                                     217      234
Other non-cash items                                               16       20
Cash generated from trading                                       720      634
Decrease in net working capital                                    16     (77)
Dividend income received                                           25       28
Cash generated from operating activities                          761      585
Interest received                                                  16        6
Financing costs paid                                             (33)     (59)
Taxation paid                                                   (148)     (77)
Cash flow from operations                                         596      455
Dividends paid                                                  (194)     (42)
Net cash retained                                                 402      413
Cash utilized in investment activities

Net investment to maintain and upgrade operations                 (3)     (72)
Net investment in returnable bottles and crates                   (5)     (39)
Investment to expand operations                                 (122)    (171)
Net cash invested                                               (130)    (282)
Cash effects of financing activities

Decrease in interest bearing debt                               (274)    (132)
Decrease in liquid resources                                      (2)      (1)
Attributable cash flow per ordinary share (cents)               391.8    300.4


Cash Value Added Statements

                                                                    2001   2000
                                                                      Rm     Rm
Cash generated
Cash derived from sales                                            3,750  3,569
Income from investments                                               25     28
Cash value generated                                               3,775  3,597
Cash payments outside the group to suppliers of materials,        (2,388)(2,344)
facilities and services
Cash value added                                                   1,387  1,253
Cash utilized to:

Remunerate employees for their services                              542    534
Pay direct and excise taxes to the state                             232    211
Provide lenders with a return on borrowings                           17     53
Provide shareholders with cash dividends                             194     42
Cash dispersed among stakeholders                                    985    840
Cash retained in the business:

From shareholders in exchange for capitalization share awards          -     86
For further retentions                                               402    327
Available to fund the replacement of assets and facilitate growth    402    413
Beneficiaries                                                          %      %
Employees                                                             39     43
State                                                                 17     17
Lenders                                                                1      4
Shareholders                                                          14     10
Retentions                                                            29     26
                                                                     100    100

Reconciliation with cash generation

Cash value added (above)                                           1,387  1,253
Remuneration of Employees                                           (542)  (534)
Payment of excise duty                                               (84)  (134)
Cash generated from operations (per cash flow statement)             761    585
State taxes summary

Direct taxes                                                         148     77
Excise duty                                                           84    134
                                                                     232    211

Value added tax                                                      200    166
Employee tax                                                         108    105
RSC levies                                                             7      7
                                                                     547    489



Balance Sheets
                                                                2001       2000
                                                                  Rm         Rm

Shareholders' funds                                            2,461      2,317
Interest bearing debt                                              -        274
Total capital employed                                         2,461      2,591
Non-current assets

Goodwill                                                       1,341      1,419
Operating Assets                                               1,059      1,057
Investment in associate                                          169        143
Other investments                                                 22         21
                                                               2,591      2,640
Returnable bottles and crates                                    353        373
Inventories                                                      186        178
Debtors                                                          315        351
Liquid resources                                                  47         49
                                                                 548        578
Total Assets                                                   3,492      3,591
Interest free liabilities
-current                                                         921        883
-deferred                                                        110        117
                                                               1,031      1,000
Net Assets                                                     2,461      2,591
Gearing ratio

Net interest bearing debt to total shareholders' funds        (0.02)       0.10
Capital Expenditure                                               Rm         Rm
Incurred                                                         130        282
Contracted                                                         -          -
Authorised by directors not yet contracted                       178        210
Fair value of associate                                          408        386
Net worth per ordinary share (cents)                          1617.7    1,523.0



Statement of Changes in Ordinary Shareholders' Equity

                                           Share   Share      Non-      Retained
                                         Capital   Premium  Distributable income
                                                             reserves   
                                              Rm        Rm         Rm        Rm
Balance at 31 March 1999                       1     1,464         89       696

-as previously reported
Changes in accounting policies                                     (2)      (78)
Restated balance at 31 March 1999              1     1,464         87       618
Premium on shares issued                               125
Transfer from share election reserve for                          (86)
shares issued
Earnings attributable to ordinary                                           295
shareholders
Ordinary dividends                                                         (187)
Balance a 31 March 2000                        1     1,589          1       726
Earnings attributable to ordinary                                           363
shareholders
Ordinary dividends                                                         (219)
Balance at 31 March 2001                       1     1,589          1       870





Commentary

The company has delivered a satisfactory set of results despite the difficult
trading environment experienced throughout the year.  The decline in volumes
of 3% to 4,474 thousand hectoliters at the interim reporting stage was
reversed with growth of 3% in the second half. Sales volumes ended the year at
10,968 thousand hectoliters, an improvement of  0.5% on the 10,910 thousand
hectoliters achieved in the prior year.



Financial performance

Input cost containment and the delivery of productivity in the post-merger ABI
has resulted in an increase in the trading margin. This improvement in margin
has delivered growth in trading profit of 28%.

The tax rate of 30,3% has increased compared to 22,2% for the prior year. The
rate in 2000 was unusually low due to adjustments passed in that year,
relating to earlier years. Net finance costs were substantially reduced as a
result of strong cash flow, which has enabled interest bearing debt to be
extinguished.

Attributable earnings grew by 23%, whilst headline earnings, after adding back
the amortisation of goodwill, increased by 17%.

The directors remain of the opinion that the purchased goodwill has an
indefinite life. However, the South African accounting statement, AC 131:
Business Combinations, requires that goodwill be amortised. 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 R78 million for both the current and prior
(restated) reporting periods.



Dividends

A final dividend of 116,5 cents per share has been declared. This will be
payable out of profits as determined by the directors.  Together with the
interim dividend of 27,5 cents, the total annual dividend of 144,0 cents per
share is 17% higher than last year, which is in line with the headline
earnings per share increase. The dividend will be paid on or about 29 June
2001 to shareholders registered in the books of the company at the close of
business on 25 May 2001.

Prospects

Trading conditions are likely to remain difficult in the coming year. However,
management efforts to stimulate the market are expected to improve volumes in
both carbonated soft drinks as well as our other beverage categories.
Accordingly, further earnings growth is expected and this will be aided by the
ongoing implementation of productivity initiatives.



By Order of the Board





D.A. Butler

Company Secretary

Johannesburg

9 May 2001

Website:www.abi.co.za



Chairman:                EAG Mackay

Non-executive Directors: NJ Adami,  MP Adonisi,  PM Bester,  JA Mabuza,  MI
                         Wyman (British)

Executive Directors:     AJ Clark (Managing Director),  EM Borcherds,  GS
                         Brockett,  TK Gibbon,  MJ Hoy,  HBB Lloyd,  AJ Parker, 
                         ATW Pickerell

Company Secretary        DA Butler

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)