Consumer Industries Editor
CAPE TOWN An increase in capacity, a change in the wine sales mix from bulk to cases and strong marketing efforts enabled Winecorp to improve its export sales in the six months to January.
Turnover at the Cape wine producer and marketing group, whose major shareholders are Spier Holdings and Capricorn Ventures, was 22% higher at R49,6m in the six months to January than in the previous comparable period. But a foreign exchange loss on a strengthening rand and a loss from associate company Thales Wine Cellar Services cut the bottom line R2,6m.
Headline earnings fell to 4,15c a share from 9,04c previously.
Management said the group contained the increase in operating expenses to 19%, which was less than the rise in turnover.
Working capital management improved as a result of lower debtor and creditor days and better stock control. Cash flow from operating activities was positive.
Management warned that it would be difficult to sustain results in the second half as the higher cost of white wines for this year's harvest and the strong rand were raising input costs.
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