| Tue 7 May 2002, 0:00 | | Amalgamated Beverage Industries Limited - Prelimin |
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Ended 31 March 2002
AMALGAMATED BEVERAGE INDUSTRIES LIMITED
(Registration Number 1970/006820/06)
ISIN number: ZAE000000048
Share code: ABI
Website: www.abi.co.za
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2002
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%
PRELIMINARY GROUP INCOME STATEMENT
2002 2001 %
Year Year Change
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
issue (millions) 152 152
PRELIMINARY GROUP CASH FLOW STATEMENT
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)
PRELIMINARY GROUP BALANCE SHEET
2002 2001
31 March 31 March
Rm Rm
ASSETS
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
EQUITY AND LIABILITIES
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
contracted 202 178
Net equity per ordinary share (cents) 1 909 1 750
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS EQUITY
Non-distri- Accu- Total
Share Share butable mulated
capital premium 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 previously
reported 363 363
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
COMMENTARY
Overview
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 31,8%. 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
Assets
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 applicable.
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.
Outlook
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
Johannesburg
PO Box 1055
Johannesburg 2000
South Africa
