| Thu 23 Aug 2001, 0:00 | | Fortune Beverages Limited - Financial Results |
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Fortune Beverages Limited
Reg. No. 1986/002814/06
Share code: FOR
ISIN code: ZAE000017323
Interim Results for the six months
ended 30 June 2001
TURNOVER UP 16%
OPERATING PROFITS UP 258%
HEADLINE EARNINGS UP 282%
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 30 June 31 December
2001 2000 2000
R000 R000 R000
ASSETS
Property, plant and equipment 102 439 105 502 100 717
Unlisted investments 3 349 3 349 3 349
Current assets 40 097 39 986 62 829
Current liabilities (27 434) (18 666) (37 727)
Cash resources/(Net overdraft) 13 749 (16 018) (7 136)
Total assets 132 200 114 153 122 032
EQUITY AND LIABILITIES
Permanent capital 108 567 98 722 97 959
Long term liabilities 8 489 9 971 8 928
Deferred income 5 026 5 081 5 026
Deferred taxation 10 118 379 10 119
Total funding 132 200 114 153 122 032
Net asset value per share
(cent) 124,9 113,6 112,9
Number of ordinary shares
in issue 86 893 250 86 893 250 86 893 250
CONSOLIDATED INCOME STATEMENTS
Unaudited Unaudited
6 months 6 months
30 June 2001 30 June 2000
R000 % R000 %
Revenue 132 295 100 113 608 100
Trading profit before
depreciation 25 969 20 11 165 10
Depreciation (4 873) (5 279)
Operating Profit 21 096 16 5 886 5
Dividends received 625 648
Interest paid (1 468) (2 168)
Interest received 1 384 1 433
Other income - 2 702
Profit before taxation 21 637 16 8 501 7
Taxation (6 685) (1 872)
Net profit attributable
to ordinary shareholders 14 952 11 6 629 6
Number of ordinary shares
in issue
- at period ended 86 893 250 86 893 250
Earnings per share (cents)
- Based on equity shares
in issue 17,2 7,6
Headline earnings per share 17,2 4,5
Dividends per share 5,0 0,0
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable Permanent
capital premium reserves capital
R000 R000 R000 R000
Balance at
31 December 1999 21 723 20 496 41 532 83 751
Net profit attributable
to ordinary
shareholders 6 629 6 629
Balance at
30 June 2000 21 723 20 496 48 161 90 380
Net profit
attributable to
ordinary shareholders 7 579 7 579
Balance at
31 December 2000 21 723 20 496 55 740 97 959
Change in
accounting policy -
Net profit
attributable to
ordinary shareholders 14 952 14 952
Dividend declared (4 344) (4 344)
Balance at 30 June 2001 21 723 20 496 66 348 108 567
CONSOLIDATED CASHFLOW STATEMENT
Unaudited Unaudited
6 months 6 months
30 June 2001 30 June 2000
R000 R000
Cash flow from operations
Operating profit before depreciation 25 969 11 165
Other non cash items
Working capital movement
Stock (1 434) 9 135
Accounts receivable 15 474 25 975
Accounts payable (5 820) (34 218)
Cash generated from operating
activities 34 189 12 057
Investment income 2 009 2 081
Interest paid (1 468) (2 168)
Taxation paid (2 447) (3 605)
Dividend paid (4 344) (5 215)
Net cash inflow from operating
activities 27 939 3 150
Investing activities
Additions to fixed assets (6 615) (5 875)
Surplus on sales of shares - 2 702
Net cash outflow from investing
activities (6 615) (3 173)
Financing activities
(Decrease)/increase in
long term liabilities (439) 1 268
Net cash (outflow)/inflow from
financing activities (439) 1 268
Cash movement during period 20 885 1 245
Net bank borrowings at beginning
of year (7 136) (17 263)
Net bank/(bank borrowings)
at end of year 13 749 (16 018)
COMMENT
Our results for the six monthsO ended 30 June 2001 reflect the
optimism expressed in the ChairmanOs report to shareholders in May
this year.
Turnover increased by 16 percent while operating profits increased
from R5,8 million for the first six monthsO last year to R21,0
million for the first six monthsO this year, an increase of some
258 percent. As a consequence, our operating margins have been
restored to 16 percent and headline earnings per share have
increased from 4.5 cents per share to 17,2 cents per share.
It is important to highlight some of the underlying reasons for
this much improved performance:
1. The recovery reflects the inherent strength of our core brands
and our single-minded focus toward the development of our business
as a fully integrated beverage company;
2. Our volumes were some 9 percent up on the prior period which is
the function of not only growth in the business but also the much
improved weather conditions which we have been so fortunate to
experience. Last year we experienced devastating floods in the
Mpumalanga regions;
3. Lower unit costs of production resulting from the containment
of our overheads and considerably improved operating efficiencies.
We would like to congratulate our management team and its staff
for their contribution toward this improvement.
The solid performance has further strengthened the balance sheet
with cash resources improving by some R20,8 million.
PROSPECTS
Under settled weather conditions and with the launch of our non-
carbonated beverage range we expect our improved performance to
continue in the second half of the year.
DIRECTORSO
Following his appointment to the bench, our vice chairman,
Advocate T L Skweyiya, resigned from the board after serving
thereon since July 1996. Advocate Skweyiya has been associated
with the company as a director for the past 15 years and we would
like to take this opportunity of thanking him for his valuable
contribution and wish him the very best in his new role.
DIVIDENDS
An interim dividend of three cents per share has been declared.
Trading under the STRATE environment requires settlement in five
business days. In accordance with the settlement procedures of
STRATE, Fortune Beverages has determined the last day to trade to
participate in the interim dividend to be Friday, 07 September
2001. The shares will commence trading ex-dividend from Monday, 10
September 2001, and the record date will be Friday, 14 September
2001.
Payment will be made on Monday, 17 September 2001. Certificated
shareholders may not dematerialise their shares between Monday, 3
September 2001, and Friday, 14 September 2001 inclusive. Dividend
cheques will be posted on Monday, 17 September 2001.
CAUTIONERY ANNOUNCEMENT
Shareholders are referred to the cautionery announcement published
in the press on 25 April 2001.
Shareholders of Fortune Beverages Limited are advised that the
negotiations referred to are ongoing and if successfully concluded
may have a material impact on the share price of Fortune shares on
the JSE Securities Exchange South Africa. Shareholders of Fortune
Beverages Limited are advised that they should continue to
exercise caution when dealing in their Fortune shares until a
further announcement has been made in this regard.
By order of the Board
LC Williams
Company Secretary
Signed at East London on Wednesday, 22 August 2001
registered office/transfer secretaries
Suite 501 The Pinnacle Building Mercantile
Registrars Limited
1 Parkin Street 11 Diagonal
Street
Nelspruit 1200 Johannesburg
2001
DIRECTORS
MWZ Kunene (Chairman and Chief Executive Officer)* DM Andrews*
(Group Managing Director)
DV Lewis S McLeod (Alt) GJ Royston A Tlakula AE Wentzel
*Executive Directors
Sponsor: Nedcor Investment Bank
