ABI Interim Results
October 29 2003 - 11:40AM
UK Regulatory
RNS Number:4569R
SABMiller PLC
29 October 2003
SABMiller plc
ABI GROUP UNAUDITED INTERIM RESULTS FOR
THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Amalgamated Beverage Industries Limited, (ABI) a subsidiary of SABMiller plc,
has reported its unaudited interim results in Johannesburg for the six months
ended 30 September 2003. The text of ABI's announcement follows. It should be
noted that the interim results have been prepared to conform to South African
Statements of Generally Accepted Accounting Practice.
Highlights
* Beverage volumes up 6%
* Profit from operations increased by 12%
* Adjusted headline earnings increased by 21%
* Dividends per share increased by 21%
Commenting on the results, Mark Bowman, ABI managing director said:
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.
Enquiries to:
Sandra Pienaar
Company secretary
Telephone: +27 11 719 1400
AMALGAMATED BEVERAGE INDUSTRIES LIMITED
(Registration Number 1970/006820/06)
Website: www.abi.co.za
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
realisation 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.
GROUP BALANCE SHEET
2003 2002 2003
30 September 30 September 31 March
Rm Rm Rm
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
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
3 047 3 004 2 984
Current assets
Inventories 325 257 270
Trade and other receivables 285 302 298
Prepayments 101 23 29
Cash 462 311 773
1 173 893 1 370
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
Deferred tax 133 126 130
Deferred income 81 97 89
Retirement benefit obligation 28 22 25
242 245 244
Current liabilities
Trade and other payables 962 860 757
Taxation (112) (80) 68
850 780 825
Total equity and liabilities 4 220 3 897 4 354
Future capital expenditure
Contracted 29 78 76
Authorised by the directors but not yet 177 91 401
contracted
GROUP INCOME STATEMENT
2003 2002 % Change 2003
Half year Half year Year
30 September 30 September 31 March
Rm Rm Rm
(Unaudited) (Unaudited) (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 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 1 - (1)
fixed assets after tax
Goodwill amortisation 40 39 78
Headline earnings 170 209 (19) 709
Deferred tax adjustment due to - (69) (69)
assessed loss
Adjusted headline earnings 170 140 21 640
Earnings per share (cents)
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 2053 1889 2154
(cents)
Number of ordinary shares in 152 152 152
issue (million)
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 (135) (48) (127)
operations
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-distributable Accumulated Ordinary Minority Total
share share reserves profit shareholders' interests shareholders'
premium funds funds
capital
Rm Rm Rm Rm Rm Rm Rm
Balance at 31 March 1 1 598 5 1 297 2 901 10 2 911
2002
Net profit for the - - - 170 170 7 177
period
Dividend - - - (216) (216) - (216)
Balance at 30 1 1 598 5 1 251 2 855 17 2 872
September 2002
Foreign currency - - (4) - (4) (3) (7)
translation
differences
Capital reserves - - 1 - 1 - 1
Net profit for the - - - 462 462 8 470
period
Dividend - - - (61) (61) (1) (62)
Balance at 31 March 1 1 598 2 1 652 3 253 21 3 274
2003
Premium on issue of - 9 - - 9 - 9
share capital used for
share options
Foreign currency - - (5) - (5) (2) (7)
translation
differences
Net profit for the - - - 129 129 5 134
period
Dividend - - - (289) (289) - (289)
Balance at 30 1 1 607 (3) 1 492 3 097 24 3 121
September 2003
By order of the board
MJ Bowman DLT 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 director
J A Mabuza
M I Wyman (British)
Executive directors
MJ Bowman (Managing director)
E M Borcherds
DLT Dondur
T K Gibbon
M J Hoy
HBB Lloyd
TC Sanderson
Company secretary
S Pienaar
Registered office
ABI House
14 Pongola Crescent
Eastgate Extension 17
Sandton 2199
P O Box 76202
Wendywood 2144
South Africa
Transfer secretaries
Computershare Limited
70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown 2107
South Africa
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR NKCKNABDDNKB