| Thu 14 Nov 2002, 11:55 | | Astral Foods Limited - Audited Results For The Yea |
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ASTRAL FOODS LIMITED - AUDITED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2002
ASTRAL FOODS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1978/003194/06)
JSE Share code ARL ISIN ZAE000029757
("the group")
AUDITED RESULTS for the year ended 30 September 2002
* Revenue increase 32%
* Margins reduce to 5,9%
* Headline earnings increase 20%
* Annual dividend increase 20%
* Net debt : equity ratio down to 22%
Consolidated Income Statements
Audited Audited
Year ended Year ended
30 Sept 2002 30 Sept 2001
R`000 R`000
Revenue 3 692 129 2 792 490
Operating profit (note 2) 219 647 203 190
Net finance costs (22 157) (34 976)
Income from associate 4 823 5 466
Profit before tax 202 313 173 680
Taxation (62 061) (58 758)
Profit after tax 140 252 114 922
Minority interests (1 721) (799)
Net profit for the year 138 531 114 123
Headline earnings for the year 140 032 116 523
Calculation of headline earnings
Net profit for the year 138 531 114 123
Loss on sale of operation - 23
Profit on sale of plant and equipment (2 092) (834)
Write-off of loan 2 393 -
Debt restructuring costs - 750
Share of associate`s headline
earnings adjustment - 1 221
Amortisation of goodwill 1 200 1 240
Headline earnings for the year 140 032 116 523
Weighted average number
of ordinary shares for:
- basic earnings per share 42 916 475 42 924 000
- diluted earnings per share 46 268 075 46 287 500
Number of shares in issue 42 866 780 42 924 000
Basic earnings per share (cents)
Earnings per share 322,8 265,9
Headline earnings per share 326,3 271,5
Diluted earnings per share (cents)
Earnings per share 307,7 251,4
Headline earnings per share 310,9 256,6
Dividends per share 108,0 90,0
Net asset value per share (cents) 1 078,7 852,7
Consolidated
Balance Sheets
ASSETS
Non-current assets 490 180 382 697
Property, plant and equipment 468 995 334 191
Goodwill 17 026 7 440
Investments and loans 4 159 28 099
Deferred tax - 12 967
Current assets 898 601 644 622
Inventories 358 089 218 428
Receivables and pre-payments 512 038 411 498
Cash and cash equivalents 28 474 14 696
Total assets 1 388 781 1 027 319
EQUITY AND LIABILITIES
Capital and reserves 462 417 366 020
Issued capital 265 206 266 038
Reserves 197 211 99 982
Minority interests 4 195 46
Non-current liabilities 140 557 102 058
Interest bearing borrowings 14 856 760
Deferred tax 80 012 60 106
Post retirement medical aid obligations 45 689 41 192
Current liabilities 781 612 559 195
Trade and other payables 624 542 411 431
Provision for tax 40 624 37 384
Short-term borrowings 116 446 110 380
Total equity and liabilities 1 388 781 1 027 319
Consolidated Cash
Flow Statements
Cash operating profit 287 415 241 458
Working capital changes 8 713 35 328
Capital investment to maintain operations (52 649) (18 443)
Cash generated from operations 243 479 258 343
Finance costs (22 157) (34 976)
Tax paid (50 910) (43 873)
Dividends paid (43 376) (25 730)
Cash inflow from operating activities 127 036 153 764
Net cash outflow from investing activities (104 629) (29 280)
Net cash outflow to financing activities (14 710) (134 332)
Net increase/(decrease) in cash
and cash equivalents 7 697 (9 848)
Effects of exchange rate changes 105 1 158
Cash from acquisition of subsidiaries 5 976 -
Cash and cash equivalent
balances at beginning of year 14 696 23 386
Cash and cash equivalent
balances at end of year 28 474 14 696
Statements of Changes in Equity
Audited Audited
Year ended Year ended
30 Sept 2002 30 Sept 2001
R`000 R`000
Balance beginning of year 366 020 266 034
Profit for the year 138 531 114 123
Movement in foreign exchange differences 2 051 1 312
Dividend paid (43 353) (15 453)
Net decrease in share capital
as result of odd-lot offer (832) -
Reverse excess provision
for share issue expenses - 4
Balance at end of year 462 417 366 020
Segmental Reporting
Revenue Rm Rm
Animal feed - South Africa 2 521,9 1 840,6
Animal feed - Other Africa 166,7 141,9
Poultry 1 721,4 1 269,3
Inter-segment (717,9) (459,3)
3 692,1 2 792,5
Operating profit
Animal feed - South Africa 130,7 75,3
Animal feed - Other Africa (1,2) 4,1
Poultry 90,1 123,8
219,6 203,2
Notes
1. Accounting policies
The results for the period have been prepared on the historical cost basis
and in compliance with South African Generally Accepted Accounting Practice. The
same accounting policies and method of computations are followed in the 2002
financial statements as compared with the financial statements at 30 September
2001.
2. Operating profit
R`000 R`000
The following items have been charged
to the operating profit:
Depreciation on property, plant and equipment 57 283 43 202
Amortisation of goodwill 1 200 1 240
3. Audit review
The annual results presented have been audited by PricewaterhouseCoopers
Inc., the group`s auditors. Their unqualified audit report is available for
inspection at the group`s registered office during normal office hours.
Financial Overview
Following on last year`s 29% increase in headline earnings, the group`s
results for 2002 reflect a further good performance, lifting headline earnings
by 20% from R116 million to R140 million.
Revenue increased by 32% to R3 692 million, with net margins decreasing from
7,5% to 5,9%, whilst operating profits increased by 8% from R203 million to R220
million.
Net financing costs of R22 million were down on the previous year`s R35
million due to strong internally-generated funds.
The tax rate of 30,7% was down on last year`s 33,8% due to the utilisation of
STC credits carried over from the previous year.
The group`s balance sheet structure was further strengthened with a net asset
value per share of 1 079 cents (2001: 853 cents). The strong cash flow
capability of the group was again demonstrated by a net cash inflow from
operating activities of R127 million (2001: R154 million). Investment activities
amounted to R105 million (2001: R29 million) which include R47 million in
respect of the National Chick Limited acquisition and R29 million for a new IQF
(individually quick frozen) processing facility at County Fair.
Operational Overview
Animal Feed division
The Animal Feed division has continued its good performance since the
turnaround phase the previous year. High raw material prices continued during
the second half of the year, as a result of the sharp decline in the rand
against the US dollar, albeit at lower levels. Spot prices of yellow maize were
mostly above import parity due to perceived shortages of maize, caused by
concerns of shortages in neighbouring countries. This division`s results were
largely sheltered from the increase in raw material prices due to good
procurement strategies, forward contracts and hedging mechanisms. The group
imported yellow maize mainly for the coastal operations. Strict cost control,
margin management and credit control were exercised throughout the period.
Operating margins for this division improved from 4,0% to 4,8%.
Poultry division
The Poultry division bore the brunt of high feed prices. In addition,
following a mild winter period, a build-up of stock was followed by unavoidable
deep-price discounting by poultry producers which caused the decline in poultry
margins, especially at Earlybird Farm (Pty) Ltd. The Poultry division was unable
to pass the high input costs on to consumers, with average realisations for the
year increasing by only 11%, which is well below the feed cost increase of
around 37%. Only in recent months have supply and demand of poultry products
returned to a more balanced situation. Operating profits of this division
dropped sharply from R124 million to R90 million, with net margins at a low 5,2%
(2001: 9,8%).
Prospects
It is not expected that the drastic increases in raw material prices will re-
occur in the coming year. All indications are that yellow maize price increases
have peaked. Good local crops of the current season as well as the expected
drop in import parity should result in lower maize prices, with welcome relief
on poultry margins. General expectations are that interest rates and inflation
are close to a peak and, together with a more stable exchange rate, should
result in earnings growth for the year ahead, albeit at a slow pace.
Declaration of Ordinary Dividend No. 4
Notice is hereby given that a final dividend of 61 cents per ordinary share
has been declared in respect of the financial year ended 30 September 2002.
Last date to trade cum-dividend Friday, 10 January 2003
Shares commence trading ex-dividend Monday, 13 January 2003
Record date Friday, 17 January 2003
Payment of dividend Monday, 20 January 2003
Share certificates may not be dematerialised or rematerialised between Monday,
13 January 2003 and Friday, 17 January 2003, both days inclusive.
On behalf of the board
J L van den Berg N C Wentzel
Chairman Managing director
Pretoria
13 November 2002
Registered office: Transfer secretaries:
Block E, Castle Walk Office Park, Computershare Investor Services Limited
Erasmuskloof, Pretoria PO Box 1053
Postnet 329, Private Bag X10 Johannesburg, 2000
Elarduspark, 0047 Telephone: 011-370-5000
Telephone: 012-347-5077
Website address: www@astralfoods.com
Sponsor:
ING Bank N.V. South Africa Branch
2 Merchant Place, Fredman Drive, Sandton, 2196
Directors:
J L van den Berg (Chairman), *N C Wentzel (Managing director),
*#T Pritchard (Financial director) *M A Kingston, J J Geldenhuys,
E M Groeneweg, C G van Veyeren (*Executive director)
(#Company secretary)
Date: 14/11/2002 09:00:00 AM Produced by the JSE SENS Department
