|
Amalgamated Beverage Industries Limited - Unaudited interim results for the six
months ended 30 September 2003
Amalgamated Beverage Industries Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1970/006820/06)
Share code: ABI
ISIN number: ZAE000000048
("ABI")
Unaudited interim results for the six months ended 30 September 2003
ABI REACHING FURTHER TOGETHER
- Profit from operations increased by 12%
- Adjusted headline earnings increased by 21%
- Dividends per share increased by 21%
www.abi.co.za
GROUP BALANCE SHEET
2003 2002 2003
30 September 30 September 31 March
Rm Rm Rm
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets 3 047 3 004 2 984
Property, plant and equipment 1 618 1 516 1 514
Goodwill 1 145 1 224 1 185
Investment in an associate 221 195 216
Deferred tax 63 69 69
Current assets 1 173 893 1 370
Inventories 325 257 270
Trade and other receivables 285 302 298
Prepayments 101 23 29
Cash 462 311 773
Total assets 4 220 3 897 4 354
EQUITY AND LIABILITIES
Capital and reserves
Issued capital and share
premium 1 608 1 599 1 599
Non-distributable reserves (3) 5 2
Accumulated profit 1 492 1 251 1 652
Ordinary shareholders" funds 3 097 2 855 3 253
Minority interest 24 17 21
Total shareholders" funds 3 121 2 872 3 274
Interest bearing debt 7 - 11
Non-current liabilities 242 245 244
Deferred tax 133 126 130
Deferred income 81 97 89
Retirement benefit obligation 28 22 25
Current liabilities 850 780 825
Trade and other payables 962 860 757
Taxation (112) (80) 68
Total equity and liabilities 4 220 3 897 4 354
Future capital expenditure
Contracted 29 78 76
Authorised by the directors
but not yet contracted 177 91 401
GROUP INCOME STATEMENT
2003 2002 2003
Half year Half year Year
30 September 30 September 31 March
Rm Rm % Rm
(Unaudited) (Unaudited) Change (Audited)
Revenue 2 349 2 068 14 5 015
Sales revenue 2 294 2 031 13 4 933
Cost of sales (1 499) (1 309) (3 041)
Gross profit 795 722 1 892
Expenses (569) (521) (1 028)
Profit from operations 226 201 12 864
Goodwill amortisation (40) (39) (78)
Net finance income 40 25 56
Profit before tax 226 187 842
Income tax expense (110) (25) (242)
Current taxation (69) (69) (276)
Deferred tax (6) 69 65
Secondary tax on
companies (35) (25) (31)
Profit after tax 116 162 600
Income from an
associate 18 15 47
Minority interest (5) (7) (15)
Net profit for the
period 129 170 632
Reconciliation of
headline earnings (Rm)
Net profit for the
period 129 170 (24) 632
Loss/(profit) on
disposal of fixed
assets after tax 1 - (1)
Goodwill amortisation 40 39 78
Headline earnings 170 209 (19) 709
Deferred tax adjustment
due to assessed loss - (69) (69)
Adjusted headline
earnings 170 140 21 640
Earnings per share
Attributable earnings 85 112 (24) 416
Headline earnings 112 138 (19) 466
Adjusted headline
earnings 112 92 22 421
Dividends per share
(cents) 49,0 40,4 21 230
Net asset value per
share (cents) 2 053 1 889 2 154
Number of ordinary
shares in issue
(million) 152 152 152
GROUP CASH FLOW STATEMENT
2003 2002 2003
Half year Half year Year
30 September 30 September 31 March
Rm Rm Rm
(Unaudited) (Unaudited) (Audited)
Profit from operations 226 201 864
Depreciation 108 78 180
Non-cash items 24 15 34
Decrease in working capital 88 108 59
Cash generated from
operations 446 402 1 137
Dividend income received 13 12 23
Normal tax paid (244) (207) (266)
Secondary tax on companies
paid (35) (25) (31)
Net cash inflow from
operating activities 180 182 863
Finance income received 46 25 53
Finance costs paid (3) - (3)
Dividends paid (290) (216) (277)
Net cash (utilised)/retained (67) (9) 636
Cash flow from investment
activities
Investment to maintain and
upgrade operations (135) (48) (127)
Proceeds on the disposal
of assets 26 18 33
Investment to expand
operations (139) (100) (227)
Net cash invested (248) (130) (321)
Cash flow due to finance
activities
(Decrease)/increase in
long-term loans (2) - 11
Currency translation reserve 2 - -
Share capital issued 9 - -
Net cash received 9 - 11
Net (decrease)/increase
in cash (306) (139) 326
Analysis of movement in cash
Balance at the beginning
of the year (773) (450) (450)
Currency translation reserve 5 - 3
Balance at the end of the
period 462 311 773
(306) (139) 326
STATEMENT OF CHANGES IN EQUITY
Ordinary Ordinary Non-
share share distributable Accumulated
capital premium reserves profit
Rm Rm Rm Rm
Balance at
31 March 2002 1 1 598 5 1 297
Net profit for
the period - - - 170
Dividend - - - (216)
Balance at
30 September 2002 1 1 598 5 1 251
Foreign currency
translation
differences - - (4) -
Capital reserves - - 1 -
Net profit for
the period - - - 462
Dividend - - - (61)
Balance at
31 March 2003 1 1 598 2 1 652
Premium on issue
of share capital
used for share
options - 9 - -
Foreign currency
translation
differences - - (5) -
Net profit for
the period - - - 129
Dividend - - - (289)
Balance at
30 September 2003 1 1 607 (3) 1 492
STATEMENT OF CHANGES IN EQUITY
Ordinary Total
shareholders"Minority shareholders"
funds interests funds
Rm Rm Rm
Balance at 31 March 2002 2 901 10 2 911
Net profit for the period 170 7 177
Dividend (216) - (216)
Balance at 30 September 2002 2 855 17 2 872
Foreign currency
translation differences (4) (3) (7)
Capital reserves 1 - 1
Net profit for the period 462 8 470
Dividend (61) (1) (62)
Balance at 31 March 2003 3 253 21 3 274
Premium on issue of share
capital used for share
options 9 - 9
Foreign currency translation
differences (5) (2) (7)
Net profit for the period 129 5 134
Dividend (289) - (289)
Balance at 30 September 2003 3 097 24 3 121
COMMENTARY
OVERVIEW
A positive performance has been achieved for the half year ended September 2003,
with beverage volumes growing 6,0% to reach 5,26 million hectolitres. This
growth can largely be attributed to increases in consumer disposable income as a
result of tax relief and interest rate cuts, the timing of Easter holidays, and
new pack and flavour innovations. Good growth in local volumes of 6,6% was
achieved, driven by 6,3% growth in mainstream carbonated soft drinks. Other soft
drinks performed well and now comprise 4,6% of total volume, up from 4,3% at the
end of the previous financial year. All customer segments contributed to the
volume performance in the first half.
FINANCIAL PERFORMANCE
Adjusted headline earnings increased by 21% compared to the prior period. This
favourable outcome was driven by volume and inflationary price increases
resulting in sales revenue growth of 13%. However, gross margins have been
suppressed by input cost increases in excess of the selling price increases, as
well as pack mix variances in favour of more affordable offerings at lower
margins. A further contributory factor is that the prior period included nine
months of trading from the Comoros Islands compared to six months results in the
current financial year. A direct comparison of results can therefore not be
made, although volume growth of 7,3% has been achieved in the Comoros Islands on
the comparable six month period.
ABI successfully launched Bibo cordial and Vanilla Coke early in the financial
year. The 1000ml returnable bottle conversion to 1250ml has been completed in
all the ABI distribution areas, and the performance of the 300ml returnable
bottle, launched during the previous financial year, is ahead of expectation.
SUSTAINABILITY
The new ABI corporate brand was launched internally to staff with the primary
objective of creating a unified culture and increasing performance. The process
is evolutionary and the implementation of the new corporate identity has
commenced.
ABI has implemented what is becoming recognised as a benchmark intervention to
address the impact of the Hiv/Aids pandemic on the organisation and its
employees. The intervention, known as ABI Aids Awareness (AAA), focuses on
managing existing infections and reducing future infections. Employees are
actively encouraged to determine their Hiv status through voluntary counselling
and testing. Extensive communication, awareness and peer educator campaigns are
designed to encourage changes in high-risk behaviour in order to reduce future
infections of employees. ABI facilitates the availability of anti-retroviral
drugs to staff members enrolled on this programme at company cost.
ABI continued with the implementation and upgrading of its plants in terms of
the NOSA Health and Safety Programme and ISO 14001 certification. In addition,
investments in production technology have yielded positive results in product
quality improvements.
OUTLOOK
Sales are expected to continue on a positive trend for the balance of the year.
While major input costs have remained above inflationary levels, there is an
expectation of more moderate increases in the future. In addition, further
realization of overhead productivity should result in real earnings growth for
the full year.
ACCOUNTING POLICIES
These results have been compiled in accordance with the South African Statements
of Generally Accepted Accounting Practice and the listings requirements of the
JSE Securities Exchange South Africa and Schedule 4 of the South African
Companies Act. The accounting policies and methods of computation used in
preparation of the interim results are consistent in all material respects with
those adopted in the annual financial statements for the year ended 31 March
2003, except for the application of AC 133, which has now been adopted.
The net effect of the change in the accounting policy on retained income was
immaterial. The Group continues to adopt a prudent approach to forward cover and
all imports are fully covered. Imports consist of glass bottles, capital
equipment and various service fees.
The external auditors have not reviewed the financial results for the half year
ended 30 September 2003.
DECLARATION OF DIVIDEND NO.56
Notice is hereby given that on 29 October 2003, the board of directors declared
an interim dividend of 49,0 cents per share (2002: 40,4 cents) for the year
ending 31 March 2004. This dividend will be paid out of profit after tax, as
determined by the directors, to ordinary shareholders recorded as such in the
register at the close of business on the record date, Friday, 19 December 2003.
The last date to trade to participate in the dividend is Thursday, 11 December
2003. Shares will commence trading ex-dividend from Friday, 12 December 2003.
The important dates pertaining to this dividend are as follows:
Last day to trade "cum" dividend Thursday, 11 December 2003
Shares trade "ex" dividend Friday, 12 December 2003
Record date Friday, 19 December 2003
Payment date Monday, 22 December 2003
Share certificates may not be dematerialised or rematerialised between Friday,
12 December 2003 and Friday, 19 December 2003, both days inclusive.
By order of the board
M J Bowman D L T Dondur
Managing director Financial director 29 October 2003
DIRECTORATE AND ADMINISTRATION
Chairman: E A G Mackay (Non-executive)
Independent directors: M P Adonisi P M Bester
Non-executive directors: J A Mabuza M I Wyman (British)
Executive directors: M J Bowman (Managing director) E M Borcherds D L T
Dondur T K Gibbon M J Hoy H B B Lloyd T C Sanderson
Company secretary: S Pienaar
REGISTERED OFFICE
ABI House 14 Pongola Crescent Eastgate Extension 17 Sandton 2199
PO Box 76202 Wendywood 2144 South Africa
TRANSFER SECRETARIES
Computershare Limited 70 Marshall Street Johannesburg 2001 PO Box 61051
Marshalltown 2107 South Africa
(Registration number 1970/006820/06) ISIN code: ZAE000000048 Share code: ABI
Johannesburg
29 October 2003
Date: 29/10/2003 05:30:13 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
