| Tue 21 Feb 2006, 14:27 | | Distell - Unaudited interim results for the six mo |
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DST
DST
Distell - Unaudited interim results for the six months ended 31 December 2005
DISTELL GROUP LIMITED
Registration number 1988/005808/06
JSE share code: DST
ISIN: ZAE000028668
Unaudited interim results of the group for the six months ended 31 December 2005
Salient features
Headline earnings per share - down 4,2%
- excluding BEE expense, up 20,7%
Dividends per share increases 21,4%
Total revenue increases 11,2%
Trading income up 17,5%
Total sales volumes grow 5,9%
ABRIDGED CONSOLIDATED BALANCE SHEETS
2005 31 December 30 June
R"000 2004 2005
R"000 R"000
Restated Restated
Assets
Non-current assets
Property, plant and equipment 1 235 896 1 247 482 1 231 353
Biological assets 101 202 99 118 107 170
Investments and loans 302 371 572 095 291 412
Investment in associates 7 514 7 466 9 721
Intangible assets 19 580 15 568 12 762
Deferred taxation 44 396 34 140 44 118
Total non-current assets 1 710 959 1 975 869 1 696 536
Current assets
Inventories 2 102 786 1 971 106 2 246 268
Trade and other receivables 901 516 772 403 552 542
Short-term investments 323 675 - 309 249
Taxation prepaid - - 51 636
Cash and cash equivalents 318 560 271 756 196 989
Total current assets 3 646 537 3 015 265 3 356 684
Total assets 5 357 496 4 991 134 5 053 220
Equity and liabilities
Capital and reserves
Capital and reserves 3 126 472 2 804 058 2 890 066
Minority interest 4 192 3 495 4 182
Total equity 3 130 664 2 807 553 2 894 248
Non-current liabilities
Non-current interest-bearing 302 026 710 419 329 014
liabilities
Post-retirement medical liability 21 391 16 905 21 391
Deferred taxation 94 432 96 483 110 646
Total non-current liabilities 417 849 823 807 461 051
Current liabilities
Trade payables and provisions 1 359 858 1 009 765 1 023 333
Short-term portion of non-current 408 400 95 005 429 989
liabilities
Current interest-bearing - 232 814 244 599
liabilities
Taxation payable 40 725 22 190 -
Total current liabilities 1 808 983 1 359 774 1 697 921
Total equity and liabilities 5 357 496 4 991 134 5 053 220
ABRIDGED CONSOLIDATED INCOME STATEMENTS
Six months ended Year ended
31 December 30 June
Change 2005
% R"000
Restated
2005 2004
R"000 R"000
Restated
Sales volumes (litres 187 434 176 952 5,9 316 445
"000)
Revenue 3 673 616 3 303 389 11,2 5 964 003
Operating expenses (3 151 079) (2 858 767) 10,2 (5 241 696)
Trading income 522 537 444 622 17,5 722 307
BEE share-based payment (74 118) - -
Operating profit 448 419 444 622 0,9 722 307
Dividend income 26 557 24 908 49 824
Financing costs (48 037) (59 713) (101 685)
Share of profit of 4 968 4 755 9 316
associates
Profit before taxation 431 907 414 572 4,2 679 762
Taxation (145 058) (116 491) (187 265)
Profit for the period 286 849 298 081 (3,8) 492 497
Attributable to:
Ordinary shareholders of 286 839 297 647 (3,6) 491 653
the company
Minority interest 10 434 844
286 849 298 081 (3,8) 492 497
Key performance
indicators:
Issued number of ordinary 198 250 196 357 197 347
shares ("000)
Weighted number of 196 916 196 357 196 194
ordinary shares ("000)
Earnings per ordinary
(cents)
- attributable and diluted 145,7 151,6 (3,9) 250,6
earnings basis
- headline basis 145,2 151,5 (4,2) 250,6
- headline basis excluding 182,9 151,5 20,7 250,6
BEE expense
Dividends per ordinary
share (cents)
- interim 68,0 56,0 21,4 56,0
- final - - - 67,0
68,0 56,0 21,4 123,0
Reconciliation of headline
earnings:
Net profit attributable to 286 839 297 647 (3,6) 491 653
ordinary shareholders of
the company
Adjusted for (net of
taxation):
profit on disposal of (828) (94) 2
property, plant and
equipment
Headline earnings 286 011 297 553 (3,9) 491 655
ABRIDGED CONSOLIDATED CASH FLOW STATEMENTS
Six months ended Year
31 December ended
30 June
2005
R"000
Restated
2005 2004
R"000 R"000
Restated
Trading income 522 537 444 622 722 307
Non-cash flow items 46 145 41 384 164 303
Working capital changes 152 577 (3 344) (91 217)
Inventories 143 482 237 161 (36 462)
Trade and other (350 350) (258 568) (39 174)
receivables
Trade payables and 359 445 18 063 (15 581)
provisions
Cash generated from operating 721 259 482 662 795 393
activities
Net financing costs (46 552) (58 974) (100 475)
Taxation paid (69 189) (77 680) (220 301)
Dividends paid (132 117) (100 142) (209 948)
Cash retained from operating 473 401 245 866 264 669
activities
Cash outflow from investment (69 209) (33 010) (92 626)
activities
Cash outflow from financing activities (38 022) (39 200) (84 939)
Decrease in net short-term borrowings 366 170 173 656 87 104
Net short-term borrowings at beginning (47 610) (134 714) (134 714)
of the period
Net cash and cash equivalents at the 318 560 38 942 (47 610)
end of the period
Current interest-bearing - (232 814) (244 599)
liabilities
Cash and cash 318 560 271 756 196 989
equivalents
ABRIDGED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Six months ended Year
31 December ended
30 June
2005
R"000
Restated
2005 2004
R"000 R"000
Restated
Share capital 1 983 1 964 1 974
Share premium 585 211 563 702 572 098
Treasury shares (12 028) (1 056) (9 461)
Non-distributable and other reserves 128 865 55 929 57 736
Opening balance 57 736 62 625 62 625
Hedging reserve 1 263 (5 218) (4 400)
Fair value adjustments 119 (361) 1 048
Foreign currency translations (5 830) (2 633) (4 570)
BEE share-based payment reserve 74 118 - -
Employee share-option reserve 1 459 1 516 3 033
Retained earnings 2 422 441 2 183 519 2 267 719
Opening balance 2 267 719 1 986 014 1 986 014
Net profit attributable to ordinary 286 839 297 647 491 653
shareholders
Dividends (132 117) (100 142) (209 948)
Minority interest 4 192 3 495 4 182
Total equity at the end of the period 3 130 664 2 807 553 2 894 248
Notes
31 December 30 June
2005
R"000
Restated
2005 2004
R"000 R"000
Restated
1. Net interest-bearing borrowings
Interest-bearing debt
Non-current 302 026 710 419 329 014
Current 408 400 327 819 674 588
710 426 1 038 238 1 003 602
Cash resources 318 560 271 756 196 989
391 866 766 482 806 613
2. Cash outflow from investment
activities
To maintain operations (37 728) (17 927) (60 552)
To expand operations (31 481) (15 083) (32 074)
(69 209) (33 010) (92 626)
3. Directors" valuation of
investments and loans
Preference shares 567 369 517 852 542 297
Other investments and loans 87 920 56 108 89 538
655 289 573 960 631 835
4. Capital commitments
Contracted 87 906 43 051 46 808
Authorised but not contracted 51 671 74 306 175 842
139 577 117 357 222 650
5. Depreciation of property, plant 68 546 57 444 132 487
and equipment
6. Net asset value per share (cents) 1 579 1 433 1 467
7. Segment report
The group is engaged in the manufacturing, marketing and
distribution of alcoholic beverages. As these activities comprise an
integrated operation, the group regards this as a single primary
business segment, on which all information is disclosed in this
profit announcement.
8. Contingencies
The group has given guarantees to financial institutions to the
amount of R57 million. These exposures are covered by mortgage bonds
over properties of third parties.
In prior years the group received compensation for relinquishing its
distribution rights to certain trade marks. The South African
Revenue Service has issued revised tax assessments to the value of
R29,5 million in terms of which the proceeds of R67 million have
been subjected to income and value added tax. The group has lodged
an appeal against these assessments and the matter will be heard in
the Special Income Tax Court.
Accounting policy and comparative figures
International Financial Reporting Standards (IFRS)
With effect from 1 July 2005, Distell is required to prepare its consolidated
financial statements in accordance with IFRS. Consequently, the first published
IFRS results are the interim results for the six months ended 31 December 2005.
Distell"s first complete set of financial statements under IFRS will be for the
year ending 30 June 2006. As comparative information is also reported, the date
for the transition to IFRS is effectively 1 July 2004. IFRS 1 "First-time
adoption of IFRS" has been applied and the results for the comparative periods
have been restated accordingly. The detailed IFRS Transition report will be
included in the interim report mailed to shareholders and featured on the
website at www.distell.co.za.
These interim results have been prepared in accordance with IAS 34 "Interim
Financial Reporting" and IFRS expected to be applicable on 30 June 2006.
In October 2005 the group entered into a broad-based Black Economic Empowerment
transaction with a consortium that includes investment group, Wiphold; all
Distell"s employees and a Corporate Social Investment Trust. The cost of this
transaction to Distell"s shareholders, calculated by using an option pricing
model, equates to R122,3 million. Based on IFRIC 8 "Scope of IFRS 2" issued in
January 2006, IFRS 2 "Share-based payments" will apply to the non-employee
portion of the BEE transaction. Earlier application of this Interpretation is
being adopted, resulting in an non-recurring expense of R67,3 million and a
corresponding increase in equity. No further measurement or adjustments are
required as it is presumed that the BEE credentials are received upfront. The
R55,0 million relating to the employee portion of the BEE transaction is being
expensed over a vesting period of 8 years in terms of IFRS 2 at R6,9 million per
year, commencing from the current financial year.
Comparative figures
Comparative figures for the year ended 30 June 2005 and the six months to 31
December 2004 have been restated to reflect the changes relating to the adoption
of IFRS.
Adjustments which reflect the major differences between South African Statements
of Generally Accepted Accounting Practice ("SA GAAP") and IFRS are noted below.
The adjustments are shown net of taxation where applicable.
Share-based payments
In accordance with the requirements of IFRS 2, the fair value of outstanding
employee share options granted since 7 November 2002 to participants under the
Distell Group Share Trust, has been recognised as an expense in the income
statement over the vesting period, with a corresponding credit to equity.
Property, plant and equipment
Past interpretation of SA GAAP did not provide for the re-assessment of an
asset"s useful life and residual value annually. The revised statement version
of IAS 16 requires useful lives and residual values of assets to be reviewed at
least at each financial year-end. This resulted in an increase in distributable
reserves with a corresponding increase in Property, plant and equipment.
Foreign currency transactions
In accordance with IAS 21 "The Effects of Changes in Foreign Exchange Rates", no
distinction is made between integral foreign operations and foreign entities and
all assets and liabilities of foreign operations must be translated from their
respective functional currencies into the group"s presentation currency using
the year-end exchange rates, and their income and expenses using the average
exchange rates. Gains or losses resulting from translation of functional
currencies to the presentation currency must be reflected as a separate
component of shareholders" equity.
Proportionate consolidation of Afdis Holdings (Private) Ltd (50%)
Afdis Holdings (Private) Limited ("Afdis Holdings"), a company registered in
Zimbabwe, was not previously consolidated under SA GAAP due to the severe
currency and long-term restrictions which significantly impaired its ability to
transfer funds to its shareholders.
In terms of IFRS, this exemption is prohibited and as a result this entity is
now required to be proportionately consolidated in accordance with IAS 31
"Interest in Joint Ventures".
Reconciliation of Assets, Liabilities and Equity
31 30 June 1 July
December 2005 2004
2004 R"000 R"000
R"000
Assets
As previously reported under SA GAAP 4 927 867 4 985 350 4 832 890
IFRS adjustments:
- Property, plant and 58 713 61 141 54 694
equipment
- Consolidation of Afdis 4 554 6 729 7 133
Holdings
As reported under IFRS 4 991 134 5 053 220 4 894 717
Liabilities
As previously reported under SA GAAP 2 167 458 2 143 013 2 260 799
IFRS adjustments:
- Deferred 14 556 14 654 13 991
taxation-Property, plant
and equipment
- Consolidation of Afdis 1 567 1 305 2 361
Holdings
As reported under IFRS 2 183 581 2 158 972 2 277 151
Equity
As previously reported under SA GAAP 2 760 409 2 842 337 2 572 091
IFRS adjustments:
- Property, plant and 44 158 46 487 40 704
equipment
- Consolidation of Afdis 2 986 5 424 4 771
Holdings
As reported under IFRS 2 807 553 2 894 248 2 617 566
Reconciliation of Income Statements
Six months to Year to
31 December 30 June
2004 2005
R"000 R"000
Profit for the period
As previously reported under SA GAAP 293 965 482 571
IFRS adjustments:
- Property, plant and equipment (IAS 16) 2 657 5 783
- Share-based payments (IFRS 2) (1 516) (3 033)
- Foreign currency differences (IAS 21) 2 560 5 120
- Consolidation of Afdis Holdings (IAS 31) 415 2 056
As reported under IFRS 298 081 492 497
Comparative figures of revenue, for the six months to 31 December 2004 have also
been restated by deducting discounts and rebates previously included in
operating expenses.
The effects of the restatement on the results of 31 December 2004 are as
follows:
Previously Restated Adjustment
reported R"000 R"000
under SA
GAAP
R"000
Revenue 3 407 943 3 298 017 (109 926)
Operational expenses (2 959 (2 849 109 926
787) 861)
Trading income 448 156 448 156 -
The interim results have been prepared in compliance with the requirements of
the South African Companies Act (Act 61 of 1973), as amended and the Listings
Requirements of the JSE Limited (JSE).
Operating performance
Revenue, on a restated basis, grew 11,2% to R3,7 billion on a sales volume
increase of 5,9%.
Distell"s sales volumes in the domestic market grew 4,8%. Our trademarks in the
spirits and ready-to-drink (RTD) categories continued to perform better than
those in the wine category, where growth was marginal. Sales volumes of spirits
and RTD categories increased 2,8% and 11,7% respectively. Sales volumes of
unfortified wine, however, remained under pressure due to increased competition
amongst local producers who, given the continuing strength of the rand,
continued to aggressively pursue the domestic market. Although this has resulted
in an environment of active discounting, we have elected to apply marketing and
pricing strategies that maintain the integrity of Distell"s brands, protecting
them for the long-term.
International sales volumes, excluding Africa, increased 22,0%. Natural wines
showed volume growth of 23,2% and Amarula Cream, growth of 15,0%. As a result,
total international revenue, rose 16,3% .
Revenue derived from African countries increased 9,2% on a sales volume growth
of 4,1%.
The increase of 17,5% in trading income was driven largely by increased revenue,
enabling the group to benefit from improved throughput. Operating margin, as a
result, improved from 13,5% to 14,2%.
Net financing costs declined by R13,3 million to R21,5 million, mainly as a
result of a substantial improvement in cash flow.
Headline earnings for the period, excluding the BEE expense, reflect an increase
of 21,0% to R360,1 million.
Investment and funding
Total assets increased 6,0% to R5,4 billion.
Capital expenditure amounted to R77,4 million.
Investment in working capital, compared to the corresponding period of the
previous year, decreased by 3,7% to R1,7 billion. An increase in the production
of bulk wines and spirits was necessitated by the group"s long-term view of
consumer demand for its products. However, process and systems enhancement
enabled management to reduce substantially the investment in bottled stock and
packaging material and to further improve on overall stock duration.
Cash generated by operating activities amounted to R473,4 million (2004: R246,0
million), and net interest-bearing borrowings decreased by R414,7 million (2004:
R212,4 million). At the end of the reporting period the group was in a net cash
position.
Prospects
On the domestic front, growth in consumer spending is expected to continue,
while interest rates remain at their current levels, impacting positively on the
demand for alcoholic beverages. However, we expect trading conditions to remain
competitive, resulting in increased marketing investment by industry players.
Distell"s own investment in brands will remain robust and we are simultaneously
implementing focused strategies to improve performance across all facets of the
business.
Internationally, the economic outlook remains relatively optimistic. However,
the global oversupply in wine continues, placing ongoing pressure on producers
participating in the major markets. Fortunately, our enhanced distribution
network, wide geographic reach and solid trademarks strengthen our ability to
optimize opportunities in a difficult trading environment. At the same time,
Amarula is continuing to entrench its presence in important markets.
The group expects to continue to reflect growth in earnings.
Directorate
Louisa Mojela and Gugu Mthethwa were appointed to the board of directors with
effect from 13 October 2005.
Dividends
The directors have resolved to declare dividend number 35 of 68 cents (2004: 56
cents) per share for the period ended 31 December 2005. This dividend represents
a dividend cover of 2,7 times (2004: 2,7 times) by headline earnings excluding
the BEE expense.
Last day to trade "cum" the dividend Friday, 10 March 2006
Shares commence trading "ex" the dividend
from commencement of business on Monday, 13 March 2006
Record date Friday, 17 March 2006
Payment date Monday, 20 March 2006
Share certificates may not be dematerialised or rematerialised between Monday,
13 March 2006 and Friday, 17 March 2006, both days inclusive.
Signed on behalf of the board
DM Nurek JJ Scannell
Chairman Managing director
Stellenbosch
21 February 2006
Directors: DM Nurek (Chairman), FC Bayly, PM Bester, PE Beyers, MJ Botha, JG
Carinus, SJ Genade, GJ Gerwel, E de la H Hertzog, MJ Madungandaba, LM Mojela, GP
Mthethwa, D Prins, JJ Scannell (Managing director), PEI Swartz, MH Visser
Company secretary: CJ Cronje
Registered office: Aan-de-Wagenweg, Stellenbosch 7600
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited, PO Box
61051, Marshalltown 2107
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
www.distell.co.za
Transition to International Financial Reporting Standards ("IFRS")
Unaudited restatement of financial information for the year ended 30 June 2005
and the six months ended 31 December 2004 under IFRS
Comments
Note: this document must be read in conjunction with paragraph 1 of the interim
report.
To explain how Distell"s reported performance and financial position are
impacted by IFRS, information previously published under South African
Statements of Generally Accepted Accounting Practice ("SA GAAP") has been
restated and reconciled to the equivalent basis under IFRS. This restatement
follows the guidelines set out in IFRS 1 "First-time Adoption of IFRS".
This document includes the following:
* Basis of preparation and explanation of transitional arrangements and
material adjustments
* Consolidated Balance Sheets as at 1 July 2004, 31 December 2004 and 30 June
2005
* Consolidated Income Statements for the six months ended
31 December 2004 and the year ended 30 June 2005
* Reconciliation of total assets, liabilities and equity at 1 July 2004, 31
December 2005 and 30 June 2005
* Reconciliation of income statements for the six months ended 31 December 2004
and the year ended 30 June 2005
* Reconciliation of shareholders equity at 1 July 2004,
31 December 2005 and 30 June 2005
Basis of preparation
For the year ended 30 June 2005 Distell prepared its financial statements under
SA GAAP, effective at that date. In accordance with the JSE Listings
Requirements, all listed companies are required to adopt International Financial
Reporting Standards for years commencing on or after 1 January 2005. Distell are
therefore required to prepare its consolidated financial statements in
accordance with IFRS for the year ending 30 June 2006. As the group publishes
comparative information for one year in its financial statements, the date for
transition to IFRS is 1 July 2004, which represents the start of the earliest
period of comparative information presented.
IFRS 1 sets out the guidelines for entities to follow in its first set of IFRS
financial statements. Distell has used these guidelines to restate its financial
information previously published under SA GAAP to the equivalent basis under
IFRS. It is important to note that this financial information has been prepared
in accordance with IFRS statements that are expected to be effective as at 30
June 2006. These are subject to ongoing review and possible amendment by
interpretation guidance from the International Accounting Standards Board
("IASB") and may therefore change.
The directors acknowledge its responsibility for the preparation of the
financial information in accordance with IFRS and policies expected to be
applicable when it prepares Distell"s first set of IFRS financial statements for
the year ending 30 June 2006.
Transitional arrangements
The date of transition to IFRS for the group is 1 July 2004 and therefore as
required by IFRS 1, the group"s opening balance sheet at 1 July 2004 has been
restated to reflect retrospectively all existing IFRS standards and
International Financial Reporting Interpretations Committee ("IFRIC")
interpretations.
IFRS 1 contains a number of optional exemptions and mandatory exceptions to this
full retrospective application of IFRS and Distell has considered these options
and has applied the following:
Business combinations
The group has elected not to apply IFRS 3 "Business Combinations"
retrospectively to business combinations that occurred prior to 1 July 2004. As
a result, the carrying amount of any goodwill is the amortised amount on 30 June
2004 and previously amortised goodwill and goodwill eliminated against reserves
are not re-instated.
Property, plant and equipment
A first time adopter may elect to use the fair value of property, plant and
equipment at transition date as the deemed cost. The group is not making use of
this transitional exemption and elects to measure individual items of property,
plant and equipment at depreciated cost determined in accordance with IFRS.
Cumulative translation differences
The cumulative translation differences in respect of the group"s foreign
operations have been reset to zero on the date of transition.
Share-based payments
The group is electing not to apply the provisions of IFRS 2 "Share-based
Payments" to equity-settled instruments granted on or before 7 November 2002, or
to equity instruments granted after 7 November 2002 but which had vested prior
to 1 January 2005.
Financial instruments
The group is electing the exemption not to restate its comparatives for IAS 32
"Financial Instruments - Disclosure and Presentation" and IAS 39 "Financial
Instruments - Recognition and Measurement". The group has applied existing SA
GAAP applicable as at 30 June 2005 to financial instruments in its 2005 figures
that will be disclosed as comparatives for the 2006 IFRS results.
Estimates
Where estimates were previously made under SA GAAP, consistent estimates have
been made on transition to IFRS.
Cash flow statement
None of the IFRS adjustments to the cash flow statement were material.
Further changes
It is possible that the preliminary financial information may require adjustment
before including it in Distell"s first full set of IFRS financial statements for
the year ending 30 June 2006. This is due to revisions or changes to standards
issued by the IASB and interpretations or guidance on the application of IFRS in
a particular industry.
Material adjustments
The basis of the major adjustments between SA GAAP and IFRS, as shown in the
Reconciliation of Equity and the Reconciliation of Income Statement tables, is
noted below. The adjustments are shown net of taxation where applicable.
Share-based payments
The group grants share options to participants under the Distell Group Share
Trust. In accordance with the requirements of IFRS 2, the group has recognised
an expense in the income statement, with a corresponding credit to equity,
representing the fair value of outstanding employee share options. The fair
value of the option at grant date is recognised in the income statement over the
relevant option vesting periods, adjusted to reflect actual and expected levels
of vesting.
Property, plant and equipment
Past interpretation of SA GAAP did not take into account the re-assessment of an
asset"s useful life and residual value on an annual basis.
The revised statement version of IAS 16 requires useful lives and residual
values of assets to be reviewed at least at each financial year-end.
Foreign currency transactions
In accordance with IAS 21 "The Effects of Changes in Foreign Exchange Rates", no
distinction is made between integral foreign operations and foreign entities and
all assets and liabilities of foreign operations must be translated from their
respective functional currencies into the group"s presentation currency using
the year-end exchange rates, and their income and expenses using the average
exchange rates. Gains or losses resulting from translation of functional
currencies to the presentation currency must be included as a separate component
of shareholders" equity.
Proportionate consolidation of Afdis Holdings (Private) Limited (50%)
Afdis Holdings (Private) Limited, a company registered in Zimbabwe, was not
previously consolidated under SA GAAP due to the severe currency and long-term
restrictions which significantly impaired its ability to transfer funds to its
shareholders.
In accordance with IFRS, the exemption to not consolidate an entity due to
severe currency and long-term restrictions is prohibited and as a result this
entity is now required to be proportionately consolidated in accordance with IAS
31 "Interest in Joint Ventures". Under this method, the group includes its share
of the joint ventures" individual income and expenses, assets and liabilities in
the relevant components of the financial statements on a line-by-line-basis.
This accounting policy is consistent with the accounting of all other joint
ventures within the Distell Group.
The functional currency of Afdis Holdings (Private) Limited is the currency of a
hyperinflationary economy (Zimbabwe) and the financial statements of this entity
is translated and consolidated into the presentation currency of the group in
accordance with IAS 29 "Financial Reporting in Hyperinflationary Economies" and
IAS 21.
Reclassifications
Previously the group disclosed computer software as part of property, plant and
equipment. This balance has now been re-classified to intangible assets in
accordance with IAS 38 "Intangible Assets".
Consolidated balance sheets
IFRS IFRS IFRS
30 June 31 Dec 1 July
2005 2004 2004
R"000 R"000 R"000
Assets
Non-current assets
Property, plant and equipment 1 231 353 1 247 482 1 271 867
Biological assets 107 170 99 118 98 939
Investments and loans 291 412 572 095 543 300
Investment in associates 9 721 7 466 9 095
Intangible assets 12 762 15 568 18 056
Deferred taxation 44 118 34 140 36 431
Total non-current assets 1 696 536 1 975 869 1 977 688
Current assets
Inventories 2 246 268 1 971 106 2 209 806
Trade and other receivables 552 542 772 403 514 480
Short-term investments 309 249 - -
Taxation prepaid 51 636 - 32 353
Cash and cash equivalents 196 989 271 756 160 390
Total current assets 3 356 684 3 015 265 2 917 029
Total assets 5 053 220 4 991 134 4 894 717
Equity and liabilities
Capital and reserves
Total capital and reserves 2 890 066 2 804 058 2 615 636
Minority interest 4 182 3 495 1 929
Total equity 2 894 248 2 807 553 2 617 565
Non-current liabilities
Non-current interest-bearing 329 014 710 419 754 601
liabilities
Post-retirement medical liability 21 391 16 905 16 905
Deferred taxation 110 646 96 483 116 167
Total non-current liabilities 461 051 823 807 887 673
Current liabilities
Trade payables and provisions 1 023 333 1 009 765 1 004 609
Short-term portion of non-current 429 989 95 005 89 766
liabilities
Taxation payable - 22 190 -
Current interest-bearing liabilities 244 599 232 814 295 104
Total current liabilities 1 697 921 1 359 774 1 389 479
Total equity and liabilities 5 053 220 4 991 134 4 894 717
Consolidated income statements
IFRS IFRS
Year Six months
ended ended
30 June 31 Dec
2005 2004
R"000 R"000
Income statement
Revenue 5 964 003 3 303 389
Operating expenses (5 241 (2 858 767)
696)
Operating profit 722 307 444 622
Dividend income 49 824 24 908
Finance costs (101 685) (59 713)
Share of profit of associates 9 316 4 755
Profit before taxation 679 762 414 572
Taxation (187 265) (116 491)
Profit for the year 492 497 298 081
Attributable to:
Ordinary shareholders of the company 491 653 297 647
Minority interest 844 434
492 497 298 081
Reconciliation of headline earnings:
Net profit attributable to ordinary 491 653 297 647
shareholders of the company
Adjusted for (net of taxation): Profit on 2 (94)
disposal of property, plant and equipment
Headline earnings 491 655 295 553
Reconciliation of income statements
IFRS IFRS
Year Six months
ended ended
30 June 2005 31 Dec 2004
R"000 R"000
Profit for the period
As previously reported under SA GAAP 482 571 293 965
IFRS adjustments:
Property, plant and equipment 5 783 2 657
(IAS 16)
Share-based payments (IFRS 2) (3 033) (1 516)
Foreign currency differences 5 120 2 560
(IAS 21)
Share of profit in Joint 2 056 415
Ventures (IAS 31)
As reported under IFRS 492 497 298 081
Reconciliation of changes in shareholders" equity
Share Share Treasury Non-
Capital Premium Shares Distri-
R"000 R"000 R"000 butable
and other
reserves
R"000
1 July 2004
As previously reported 1 964 563 702 (1 480) 60 184
under SA GAAP
IFRS adjustments:
Foreign currency - - - (1 903)
translations
Share-based - - - 4 345
payments
Property, plant - - - -
and equipment
Joint Ventures - - - -
As reported under IFRS 1 964 563 702 (1 480) 62 626
31 December 2004
As previously reported 1 964 563 702 (1 056) 54 532
under SA GAAP
IFRS adjustments:
Foreign currency - - - (4 464)
translations
Share-based - - - 5 861
payments
Property, plant - - - -
and equipment
Joint Ventures - - - -
As reported under IFRS 1 964 563 702 (1 056) 55 929
30 June 2005
As previously reported 1 974 572 098 (9 461) 57 382
under SA GAAP
IFRS adjustments:
Foreign currency - - - (7 024)
translations
Share-based - - - 7 378
payments
Property, plant - - - -
and equipment
Joint Ventures - - - -
As reported under IFRS 1 974 572 098 (9 461) 57 736
Retained Minority Total
earnings interests R"000
R"000 R"000
1 July 2004
As previously reported under SA GAAP 1 946 462 1 259 2 572 091
IFRS adjustments:
Foreign currency 1 903 - -
translations
Share-based payments (4 345) - -
Property, plant and 40 703 - 40 703
equipment
Joint Ventures 4 101 670 4 771
As reported under IFRS 1 988 824 1 929 2 617 565
31 December 2004
As previously reported under SA GAAP 2 140 016 1 251 2 760 409
IFRS adjustments:
Foreign currency 4 464 - -
translations
Share-based payments (5 861) - -
Property, plant and 44 158 - 44 158
equipment
Joint Ventures 742 2 244 2 986
As reported under IFRS 2 183 519 3 495 2 807 553
30 June 2005
As previously reported under SA GAAP 2 218 691 1 653 2 842 337
IFRS adjustments:
Foreign currency 7 024 - -
translations
Share-based payments (7 378) - -
Property, plant and 46 487 - 46 487
equipment
Joint Ventures 2 895 2 529 5 424
As reported under IFRS 2 267 719 4 182 2 894 248
Reconciliation of Assets, Liabilities and Equity
IFRS IFRS IFRS
30 June 31 Dec 1 July
2005 2004 2004
R"000 R"000 R"000
Assets
As previously reported under SA GAAP 4 985 350 4 927 867 4 832 890
IFRS adjustments:
Property, plant and 61 141 58 713 54 694
equipment
Assets in Joint
Venture (Afdis
Holdings (Private) 6 729 4 554 7 133
Limited)
- Property, plant and 3 520 1 677 3 300
equipment
- Investment and 274 128 134
loans
- Inventories 2 139 976 2 510
- Taxation prepaid (900) - (877)
- Trade and other 1 301 1 040 1 066
receivables
- Deferred taxation (278) - -
- Cash and cash 673 733 1 000
equivalents
As reported under IFRS 5 053 220 4 991 134 4 894 717
Liabilities
As previously reported under SA GAAP 2 143 013 2 167 458 2 260 799
IFRS adjustments:
Deferred taxation - 14 654 14 556 13 991
Property, plant
equipment
Joint Venture
liabilities (Afdis
Holdings (Private) 1 305 1 567 2 361
Limited)
- Trade and other 504 598 820
payables
- Taxation payable - 716 -
- Deferred taxation 801 253 1 049
- Current interest- - - 492
bearing liabilities
As reported under IFRS 2 158 972 2 183 581 2 277 151
Equity
As previously reported under SA GAAP 2 842 337 2 760 409 2 572 091
IFRS adjustments:
Property, plant and 46 487 44 158 40 704
equipment
Joint Venture (Afdis 5 424 2 986 4 771
Holdings (Private)
Limited)
As reported under IFRS 2 894 248 2 807 553 2 617 566
Date: 21/02/2006 02:27:27 PM Produced by the JSE SENS Department
