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SouthAfricanBrewerie (SAB)

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Monday 05 November, 2001

SouthAfricanBrewerie

ABI Interim Results

South African Breweries PLC
5 November 2001



                    ABI INTERIM RESULTS FOR THE SIX MONTHS
                          ENDED 30 SEPTEMBER 2001


SAB's subisidiary, Amalgamated Beverage Industries Limited (ABI), has reported
its interim results in Johannesburg for the six months ended 30 September
2001.  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 1400



                   AMALGAMATED BEVERAGE INDUSTRIES LIMITED

                     (Registration Number 1970/006820/06)



INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001


Trading profit increased by 35%
Attributable earnings per share increased by 33%
Headline earnings per share increased by 18%
Dividends per share increased by 18%


INCOME STATEMENTS


                                              2001        2000             2001
                                         Half year   Half Year             Year
                                         September   September            March
                                                Rm          Rm Change        Rm
                                       (unaudited) (unaudited)      % (audited)

Revenue                                      1,739       1,548    12%     3,799

Trading Profit                                 124          92    35%       487

Share of associate's earnings                   12          21               51
Net financing income/ (costs)                    4        (13)             (17)

Profit before taxation                         140         100              521

Taxation                                      (67)        (45)            (155)
Effective charge excluding STC                (46)        (27)            (134)
STC charge                                    (21)        (18)             (21)

Earnings attributable to                        73          55    33%       366
ordinary shareholders


Earnings per share (cents)
Attributable earnings basis                   48.0        36.2    33%     240.8
Headline earnings basis                       73.7        62.5    18%     292.1

Dividends per ordinary                        32.5        27.5    18%     144.0
share (cents)

Reconciliation of headline
earnings (Rm)
Earnings attributable to ordinary               73          55              366
shareholders
Loss on disposal of fixed assets                 0           1                0
Goodwill amortised                              39          39               78

Headline earnings                              112          95    18%       444

Weighted average number                        152         152              152
of ordinary shares in
issue (millions)

Number of ordinary shares in                   152         152              152
issue (millions)



CASH FLOW STATEMENTS

                                                    2001        2000       2001
                                               Half Year   Half year       Year
                                               September   September      March
                                                      Rm          Rm         Rm
                                             (unaudited) (unaudited)  (audited)

Cash flow from operating activities

Trading Profit                                       124          92        487
Amortisation                                          39          39         78
Depreciation                                          69          69        139
Other non-cash items                                   6          10          8


Cash generated from trading                          238         210        712

Decrease in working capital                           10          68         24
Dividend income received                              10          10         25

Cash generated from operations                       258         288        761
Net interest received / (paid)                         4        (13)       (17)
Taxation paid                                       (97)        (69)      (148)

Cash flow from operations                            165         206        596

Dividends paid                                     (177)       (152)      (194)
Issue of share capital                                 8

Net cash retained                                    (4)          54        402

Cash flow from investment activities


Investment to maintain and upgrade                  (11)        (16)       (27)
operations
Investment in returnable bottles and crates          (8)         (6)       (26)
Investment to expand operations                     (29)        (77)      (122)
Disposal proceeds                                     18          10         45

Net cash invested                                   (30)        (89)      (130)

Cash effects of financing activities


Increase / decrease in interest bearing debt          89          77      (274)

Net cash inflow / (outflow) from financing            89          77      (274)

activities

Increase / (decrease) in liquid resources             55          42        (2)



BALANCE SHEETS

                                                 2001          2000        2001
                                            September     September       March
                                                   Rm            Rm          Rm
                                          (unaudited)   (unaudited)   (audited)

Shareholders' funds                             2,564         2,408       2,660

Interest bearing debt                              89           351

Total capital employed                          2,653         2,759       2,660


Non-current assets
Goodwill                                        1,302         1,380       1,341
Operating assets                                1,025         1,080       1,059
Associate investments                             171           154         169
Other investments                                  22            21          22

                                                2,520         2,635       2,591

Returnable bottles and crates                     342           362         353


Current assets

Inventories                                       213           215         186
Debtors                                           344           318         315
Liquid resources                                  102            91          47

                                                  659           624         548

Total assets                                    3,521         3,621       3,492


Interest free liabilities

Current                                           758           737         722
Deferred taxation                                 110           125         110
                                                  868           862         832

Net assets                                      2,653         2,759       2,660


Capital expenditure (Rm)
Incurred                                           48            99         175
Contracted                                         80            34           0
Authorised by the directors but not yet            73            48         178

contracted

Net worth per ordinary share (cents)            1,687         1,584       1,750



STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS EQUITY


                                                     2001        2000      2001
                                                Half year   Half year      Year
                                                September   September     March
                                                       Rm          Rm        Rm
                                              (unaudited) (unaudited) (audited)

Shareholders' funds at the beginning of the         2,660       2,334     2,317
period

Change in accounting policy (see accounting                       171       171
policies: AC107)

Restated shareholders' funds at the beginning       2,660       2,505     2,488
of the period


Changes in share premium

Premium on shares issued for share options              8

Changes in retained surplus

Earnings attributable to ordinary                      73          55       366
shareholders as adjusted
Earnings attributable to ordinary                                  68       363
shareholders as previously reported
Change in accounting policy (see accounting                      (13)         3
policies: AC107)
Ordinary dividends (restated)                       (177)       (152)     (194)


Shareholders' funds at the end of the period        2,564       2,408     2,660



COMMENTARY


Financial results


Despite difficult trading conditions, volume growth of 3% to 4,61 million
hectolitres has been obtained in the first half of the year.  This positive
performance continues the trend set in the second half of the previous
financial year.  Sales of mainstream carbonated soft drinks grew compared to
the previous period, aided by the sales of new products.  These other soft
drinks, while still small, are growing rapidly and now make up 3% of total
volume.


Overhead cost containment, productivity initiatives and rationalisation
continue to deliver value and will yield further savings into the future.
Careful phasing of capital spending has yielded benefits in cash flow and
therefore a net interest received position, despite the outflow of dividends
in the period.  ABI's strong cash generating ability has allowed the company
to remain ungeared.


Due to a shift in consumer preference from cans to bottles, volumes of our
associate company Coca-Cola Canners have declined, resulting in lower earnings
and dividend income.



Accounting policies


The South African Accounting Statement AC 107 'Events after the balance sheet
date', requires that dividends, and the related STC charge, are only accounted
for in the period when declared.  The effect of this change is disclosed in
the statement of changes in equity and comparative figures have been restated
accordingly.  This change has the effect of significantly raising the tax rate
on the face of the interim Income Statement, however in the second half of the
year only the interim dividend will result in an STC charge.


The interim financial statements are prepared in accordance with and comply
with South African Statement of General Accepted Accounting Practice and with
the requirements of the South African Companies Act. The principal accounting
policies, which were adopted in the preparation of these interim financial
statements, correspond with those applied in the latest annual financial
statements, except as indicated above.



Dividends


Notice is hereby given that on 2 November 2001, the board of directors
resolved to declare an interim dividend of 32,5cents per share (2000: 27,5
cents per share) an increase of 18%.  This dividend will be paid out of
profits as determined by the directors, to shareholders registered as such at
the close of business on 23 November 2001. The salient dates for the
declaration and payment of the interim dividend are as follows:


Last date to trade ('LDT') ordinary share 'cum' dividend: Friday 16 November
2001
Ordinary share trade 'ex' dividend: Monday 19 November 2001
Record date ('RD'): Friday 23 November 2001
Payment date: Monday 31 December 2001


Share certificates may not be dematerialised/ rematerialised between Monday 12
November and 23 November 2001, both days inclusive.



Prospects


The positive sales trend of the first six months is expected to continue
during the remainder of the year.  This, together with ongoing cost control,
should result in real earnings growth at the full year.


                        Directorate and administration


Chairman E A G Mackay

Non-executive directors
N J Adami
M P Adonisi
P M Bester
J A Mabuza
M I Wyman (British)


Executive Directors
A J Clark (Managing Director)
E M Borcherds
G S Brockett
T K Gibbon
M J Hoy
H B B Lloyd
A J Parker
A T W Pickerell


Company Secretary
D A Butler


Registered office
ABI House
14 Pongola Crescent
Eastgate Extension 17
Sandton 2199
P O Box 76202
Wendywood 2144
South Africa


Transfer secretaries
Mercantile Registrars Ltd
Anglogold Building
11 Diagonal Street
Johannesburg 2001
POBox 1053
Johannesburg 2000
South Africa