| Mon 5 Nov 2001, 0:00 | | Amalgamated Beverage Industries Limited - Interim |
|
ended 30 September 2001
ABI
Amalgamated Beverage Industries Limited
(Reg. No. 1970/006820/06)
ISIN number: ZAE000000048 Share code: ABI
Interim results for the six months ended 30 September 2001
Life tastes good
Coca-Cola
Coca-Cola and Life tastes good are trademarks of The Coca-Cola Company "
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 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)
STCcharge (21) (18) (21)
Earnings attributable to
ordinary shareholders 73 55 33% 366
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
share (cents) 32,5 27,5 18% 144,0
Reconciliation of
headline earnings (Rm)
Earnings attributable to
ordinary shareholders 73 55 366
Loss on disposal of fixed assets - 1 -
Goodwill amortised 39 39 78
Headline earnings 112 95 18% 444
Weighted average
number of ordinary
shares in issue (millions) 152 152 152
Number of ordinary
shares in issue (millions) 152 152 152
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 operations (11) (16) (27)
nvestment 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 activities 89 77 (274)
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 -
Authorised by the directors but
not yet contracted 73 48 178
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 period 2 660 2 334 2 317
Change in accounting policy
(See accounting policies) - 171 171
Restated shareholders' funds at
the beginning of the period 2 660 2 505 2 488
Changes in share premium
Premium on shares issued
for share options 8 - -
Changes in retained surplus
Earnings attributable to ordinary
shareholders as adjusted 73 55 366
Earnings attributable to ordinary
shareholders as previously
reported - 68 363
Change in accounting policy
(See accounting policies) - (13) 3
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 Statements 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 32,5 cents 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 shares
"Cum" dividend Friday,
16 November 2001
Ordinary shares trade Monday,
"ex" dividend 19 November 2001
Record date 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.
By order of the board
D A Butler
Company Secretary
2 November 2001ABI Amalgamated Beverage
Industries Limited
(Reg. No. 1970/006820/06)
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
Transfer secretaries
Mercantile Registrars Ltd Anglogold Building
11 Diagonal Street Johannesburg 2001
POBox 1053 Johannesburg 2000
WWW.abi.co.za
