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SouthAfricanBrewerie (SAB)

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Tuesday 07 May, 2002


ABI Preliminary Results

South African Breweries PLC
7 May 2002



Amalgamated Beverage Industries Limited, (ABI) a subsidiary of South African
Breweries plc, has reported its preliminary results in Johannesburg for the year
ended 31 March 2002. The text of ABI's announcement follows. It should be noted
that the preliminary results have been prepared to conform to South African
Statements of Generally Accepted Accounting Practice.

Enquiries to:

Dr Alan Clark

Managing Director of ABI

Telephone: +27 11 719 1400


                      (Registration Number 1970/006820/06)

                           ISIN number: ZAE000000048

                                Share code: ABI



Profit from operations increased by 24%

Basic earnings per share increased by 24%

Headline earnings per share increased by 21%

Dividends per share increased by 21%


                                                               2002                2001          % Change

                                                               Year                Year

                                                           31 March            31 March

                                                                 Rm                  Rm
Total revenue                                                 4,330               3,799

Sales revenue                                                 4,283               3,759                14

Cost of sales                                               (2,612)             (2,315)

Gross profit                                                  1,671               1,444

Expenses                                                      (969)               (879)

Profit from operations                                          702                 565                24

Goodwill amortisation                                          (78)                (78)

Net financing income / (costs)                                   23                (17)
Income from associate                                            46                  51
Profit before tax                                               693                 521                33

Income tax expense                                            (231)               (155)
Profit after tax                                                462                 366

Minority interest                                               (7)                   -
Net profit for the period                                       455                 366                24

Earnings per share (cents)
Basic earnings                                                299.3               240.8                24
Headline earnings                                             353.3               292.1                21
Dividends per share (cents)                                   174.0               144.0                21

Reconciliation of headline

earnings (Rm)
Net profit for the period                                       455                 366
Loss on disposal of fixed assets                                  4                   -
Goodwill amortised                                               78                  78
Headline earnings                                               537                 444                21

Number of ordinary shares in                                    152                 152
issue (millions)


                                                                                     2002               2001

                                                                                     Year               Year

                                                                                    March              March

                                                                                       Rm                 Rm
Cash flow from operating activities

Profit from operations                                                                702                565
Depreciation                                                                          155                139
Other non-cash items                                                                   13               (41)
Decrease in working capital                                                            33                 75
Cash generated from operations                                                        903                738

Dividend income                                                                        24                 25
Net financing income / (costs)                                                         23               (17)
Normal tax paid                                                                     (138)              (127)
Secondary tax on companies paid                                                      (25)               (21)
Net cash inflow from operating activities                                             787                598

Dividends paid                                                                      (227)              (194)
Net cash retained                                                                     560                404

Cash flow from investment activities

Investment to maintain and upgrade operations                                       (117)               (10)
Investment to expand operations                                                      (77)              (122)
Net cash invested                                                                   (194)              (132)

Cash effects of financing activities                                                   28              (274)

Increase / (decrease) in cash and cash equivalents

Balance at the beginning of the year                                                   47                 49
Cash and cash equivalents at acquisition of subsidiaries                                9                  -

Balance at the end of the year                                                        450                 47

                                                                                      394                (2)


                                                                                2002                  2001

                                                                            31 March              31 March

                                                                                  Rm                    Rm

Non-current assets

Property, plant and equipment                                                  1,483                 1,444
Goodwill                                                                       1,263                 1,341
Investment in associate                                                          192                   169
Other financial assets                                                             -                    22
                                                                               2,938                 2,976
Current assets

Inventories                                                                      183                   186
Trade and other receivables                                                      393                   256
Prepayments                                                                       20                    27
Cash and cash equivalents                                                        450                    47
                                                                               1,046                   516
Total assets                                                                   3,984                 3,492


Capital and reserves

Issued capital                                                                 1,598                 1,590
Reserves                                                                           6                     1
Accumulated profits                                                            1,297                 1,069
                                                                               2,901                 2,660
Minority interest                                                                 10                     -

Non-current liabilities
Deferred tax                                                                     126                   110
Deferred income                                                                  104                   119
Retirement benefit obligation                                                     27                    21
                                                                                 257                   250
Current liabilities

Trade and other payables                                                         816                   582

Total equity and liabilities                                                   3,984                 3,492

Future capital expenditure (Rm)
Contracted                                                                        78                     -
Authorised by the directors but not yet                                          202                   178


Net equity per ordinary share (cents)                                          1,909                 1,750


                                          Share  Share premium    Non-distributable    Accumulated       Total
                                        capital                            reserves         profit 
                                             Rm            Rm                   Rm            Rm           Rm

Balance at 31 March 2000                      1         1,589                    1           726        2,317

Changes in accounting policy                  -             -                    -           171          171
Restated balance at 31 March 2000             1         1,589                    1           897        2,488

Net profit for the period                     -             -                    -           366          366
Net profit for the period as                  -             -                    -           363          363
previously reported

Changes in accounting policy                  -             -                    -             3            3
Dividend                                      -             -                    -         (194)        (194)
Balance at 31 March 2001                      1         1,589                    1         1,069        2,660

Net profit for the period                     -             -                    -           455          455
Dividend                                      -             -                    -         (227)        (227)
Premium on issue of share capital             -             8                    -             -            8
Currency translation differences              -             -                    5             -            5
Balance at 31 March 2002                      1         1,597                    6         1,297        2,901



ABI had an improved second half, after 3% volume growth at the interim, and
delivered overall volume growth of 4.7% for the full year to reach 11.5 million
hectolitres. This was assisted by the first time inclusion of the two small
businesses in Mayotte and the Comores, acquired with the Suncrush assets in June
1998, whose sales this year totalled 99 thousand hectolitres. Excluding this,
organic volume growth was 3.8%.

Both carbonated and other soft drinks showed good growth. Other soft drinks now
constitute 3.5% of ABI's total volume.

Financial performance

The ongoing decline in the exchange rate of the rand caused increasing pressure
on raw material costs. Despite this, ABI was able to increase its gross margin
percentage due to further production efficiencies, overhead productivity
improvements and rationalisation initiatives.

Profit from operations grew by 24% on prior year and strong cash generation
enhanced our net finance income.

Earnings from our associate company, Coca-Cola Canners, declined as a result of
the raw material cost increases and the costs associated with the expanding
range of other products.

The effective tax rate has increased from 28.3% to 31.9%. This, as well as the
increase in taxable profits, resulted in our tax expense increasing by 49%.
Basic earnings per share reflects 24% growth and headline earnings per share
grew by 21%.

Interest in the islands

At the time of the purchase of the Suncrush assets in June 1998, the company
acquired an effective 58.5% of SA Mayco, a private company bottling and
distributing products in Mayotte under the Coca-Cola franchise. ABI also
acquired an effective controlling interest of 42.1% in SARL Comco, which company
has a bottling plant in Anjouan in the Comores and produces and distributes
products under the Coca-Cola franchise.

No consolidation was performed in previous years due to unreliable information
and immaterial results from these operations. Results for the year ended 31
December 2001 have been consolidated and the accumulated results prior to 31
December 2000 have been accounted for as a take-on balance. The consolidated
results for the two holding companies and their subsidiaries were as follows:

Balance sheet at 31 December 2001                                             Rm

Non-current assets                                                            29
Current assets                                                                29
Total assets                                                                  58

Equity and liabilities
Issued capital                                                                 -
Translation reserves at the beginning of the year                              7
Accumulated profit at the beginning of the year                                -
Accumulated profit for the year                                               12
Minority interest                                                              3
Current liabilities                                                           36
Total equity and liabilities                                                  58

Abridged income statement for the year ended 31 December 2001

Sales revenue                                                                 62
Profit before tax                                                             14
Income tax expense                                                             -
Profit after tax                                                              14
Minority interest                                                            (2)
Net profit for the period                                                     12

Accounting policies

The company has revised its presentation of results to comply with AC101 ('
Presentation of financial statements') and presents dividend disclosures in
terms of AC107 ('Events after the balance sheet date'). AC123 ('Property, plant
and equipment') requires bottles and crates to be accounted for as non-current
assets in property, plant and equipment. None of these changes has impacted
headline earnings. However, the effect of the changes has been disclosed in the
statement of changes in equity and comparative numbers have been restated where

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


The full impact of the decline in the rand in December 2001 will be felt in the
new year. The rise in imported raw material costs and domestic inflation will
not be fully recovered through consumer price increases. Despite this, real
earnings growth, although at a more modest level than achieved in the year just
ended, should be possible through management's continuing focus on productivity
and cost management.

Declaration of dividend No.53

Notice is hereby given that final ordinary dividend No. 53 of 141.5 cents per
share (2001: 116.5 cents) has been declared in respect of the year ended 31
March 2002. This dividend will be paid out of reserves as determined by the
directors, to shareholders recorded as such in the register at the close of
business on the record date, Thursday, 27 June 2002. The last date to trade to
participate in the dividend is Thursday, 20 June 2002. Shares will commence
trading ex-dividend from Friday, 21 June 2002.

The important dates pertaining to this dividend are as follows:

Last day to trade 'CUM' dividend            Thursday, 20 June 2002

Shares trade 'EX' dividend                  Friday, 21 June 2002

Record date                                 Thursday, 27 June 2002

Payment date                                Friday, 28 June 2002

Share certificates may not be dematerialised or rematerialised between Thursday
13 June 2002 and Thursday, 27 June 2002, both days inclusive.

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

Computer Share Services Limited

Anglogold building

11 Diagonal street


PO Box 1055

Johannesburg 2000

South Africa

                      This information is provided by RNS
            The company news service from the London Stock Exchange