RNS Number:5680E
SABMiller PLC
28 October 2004
+
Unaudited interim results for the ABI group for the six months ended
30 September 2004
Amalgamated Beverage Industries Limited (ABI), a subsidiary of SABMiller plc,
has reported its unaudited interim group results in Johannesburg, South Africa
for the six months ended 30 September 2004. The text of ABI's announcement
follows. It should be noted that the interim group results have been prepared
to conform to South African Statements of Generally Accepted Accounting
Practice.
Enquiries to:
Sandra Pienaar
Company secretary
Telephone: +27 11 719 1400
Highlights
* Beverage volumes up 7.9% to 5.7 million hectolitres
* Sales revenue grows by 14.0% to R2.6 billion
* Trading profit increases by 50.4% to R340 million
* Headline earnings increase by 24.1% to R211 million
* Dividends per share increase by 24.5% to 61 cents per share
Overview
Following on from the good results for the year ended March 2004, real growth in
earnings has been maintained for the half-year ended September 2004 through
sustained volume growth, revenue management and productivity gains. The primary
driver of the 7.9% volume growth has been increased consumer spending, led by
improved disposable income in middle and upper income groups. This was further
assisted by effective marketing activity and relatively favourable weather
conditions. Mainstream carbonated soft drink volumes increased by 7.2%, while
other soft drinks grew by 20.8%. The latter contributed 5.2% to total volumes
sold, up from 5.0% over the previous financial year.
Financial performance
Headline earnings increased by 24.1% compared to the six months ended 30
September 2003. These earnings are determined after absorbing non-recurring
taxation and interest charges totalling R27 million on the Immediate Consumption
Programme (ICP: a subsidy towards cooler investment received in 1998 and 1999
from the Coca-Cola Southern and East Africa division). The taxation and related
interest on ICP funds, disclosed as a contingent liability of R69 million in the
2004 annual report, has been settled with the South African Revenue Services.
The net impact to the income statement is interest payable of R10 million and a
taxation charge of R17 million. Excluding the effect of this, the growth in
headline earnings would have been 40%.
The 14% increase in sales revenue was primarily driven by the higher volumes
together with selling price increases. Gross margins improved slightly over the
comparable period last year from 34.7% to 34.9%. Higher selling prices and raw
material cost efficiencies have been offset to some extent by increased
container amortisation resulting from high container investment in the latter
half of the prior year.
As a consequence of the above, together with overhead productivity gains,
trading profit grew by 50.4% compared to the comparable period last year,
strengthening ABI's trading margin from 9.9% to 13.0%.
Net interest earned has seen a decline of R22 million despite an increase in the
average cash reserves relative to the comparable period last year. This is due
to the ICP interest charge referred to earlier, as well as the progressive
reduction in interest rates.
The cash balance has improved by R209 million when measured against the same
period last year. This is primarily due to the improved operating performance
as well as the improved net working capital position. The decline in the cash
balance of R131 million, from R802 million at the last year-end to R671 million,
is mainly due to the final dividend as well as final and provisional taxation
payments made.
Sustainability
ABI continues to take a holistic approach to business sustainability with
appropriate investment in quality, health and safety, the environment and the
communities within which the company operates. To this end ABI continues to
improve NOSA and ISO 14000 ratings and product quality results across all
plants. The company remains active in its support of HIV/Aids orphans through
the NOAH (Nurturing Orphans of Aids for Humanity) and Starfish Foundation
initiatives. Other areas of support include participation in environmental
projects and assistance to smaller businesses through training and other
programs. ABI is also a member of the JSE Socially Responsible Investment (SRI)
Index.
Outlook
Sales are expected to continue on a positive growth trend for the balance of the
year, albeit at a lower rate than that achieved in the first half. Given an
expectation of stable economic growth, with moderate input cost increases and
further productivity gains, real earnings growth is expected for the full year.
Scheme of arrangement
The attention of shareholders is drawn to the scheme of arrangement as detailed
in the circular to ABI shareholders issued on Thursday, 14 October 2004.
Accounting policies
These results have been compiled in accordance with the South African Statements
of Generally Accepted Accounting Practice and the listing requirements of the
JSE Securities Exchange South Africa and Schedule 4 of the South African
Companies Act. With the exception noted below, the accounting policies and
methods of computation used in the preparation of the results are consistent in
all material respects with those adopted in the annual financial statements for
the year ended 31 March 2004. The following exception should be noted:
* AC140: Business combinations, has been applied which necessitates a
discontinuation of the amortisation of goodwill from 1 April 2004, subject to
the requirements of AC128: Impairment of assets.
The effect of this change in accounting policy is a R40 million reduction in
amortisation charged to the income statement as compared to the comparable
period last year. Headline earnings are not affected as the amortisation of
goodwill is added back in the calculation of headline earnings.
Ernst & Young, the company's external auditors, have not reviewed or audited the
financial results for the six months ended 30 September 2004.
Declaration of dividend No.58
Notice is hereby given that on 27 October 2004, the board of directors declared
an interim dividend of 61 cents per share (2003: 49 cents) for the year ending
31 March 2005. This dividend will be paid out of profit on ordinary activities
after taxation, as determined by the directors, to ordinary shareholders
recorded as such in the register at the close of business on the record date,
Friday, 10 December 2004. The last date to trade to participate in the dividend
is Friday, 3 December 2004. Shares will commence trading ex-dividend from
Monday, 6 December 2004.
The important dates pertaining to this dividend are as follows:
Last day to trade 'cum' dividend Friday, 3 December 2004
Shares trade 'ex' dividend Monday, 6 December 2004
Record date Friday, 10 December 2004
Payment date Monday, 13 December 2004
Share certificates may not be dematerialised or rematerialised between Monday, 6
December 2004 and Friday, 10 December 2004, both days inclusive.
Group income statements
Half-year ended Half-year Year
30 September ended ended
2004 30 31
Rm September March
2003 % Change 2004
Rm Rm
(Unaudited) (Unaudited) (Audited)
Revenue 2,667 2,349 5,666
Sales revenue 2,616 2,294 14 5,571
Cost of sales (1,702) (1,499) (3,339)
Gross profit 914 795 2,232
Net operating costs (574) (569) (1,192)
Trading profit 340 226 50 1,040
Goodwill amortisation - (40) (78)
Operating profit 340 186 962
Income from an associate 22 18 48
Profit on ordinary activities before 362 204 77 1,010
interest and taxation
Net finance income 18 40 66
Profit on ordinary activities before 380 244 1,076
taxation
Taxation (166) (110) (377)
Profit on ordinary activities after 214 134 699
taxation
Equity minority interests (4) (5) (11)
Net profit for the period 210 129 688
Reconciliation of headline earnings (Rm)
Net profit for the period 210 129 63 688
Loss on disposal of property, plant and 1 1 9
equipment after taxation
Goodwill amortisation - 40 78
Headline earnings 211 170 24 775
Earnings per share (cents)
Basic earnings 137 85 61 450
Headline earnings 138 112 23 507
Dividends per share (cents) 61 49 24 280
Net asset value per share (cents) 2,272 2,053 11 2,359
Number of ordinary shares in issue 153 152 153
(million)
Weighted average number of ordinary shares 153 152 153
in issue (million)
Group balance sheets
30 September 30 31
2004 September March
Rm 2003 2004
Rm Rm
(Unaudited) (Unaudited) (Audited)
Assets
Non-current assets 3,117 3,047 3,011
Property, plant and equipment 1,719 1,615 1,615
Investment properties 3 3 3
Goodwill 1,107 1,145 1,107
Investment in an associate 241 221 236
Deferred taxation asset 47 63 50
Current assets 1,621 1,285 1,580
Inventories 359 325 309
Trade and other receivables 343 285 309
Prepayments 175 101 160
Current taxation asset 73 112 -
Cash and cash equivalents 671 462 802
Total assets 4,738 4,332 4,591
Equity and liabilities
Capital and reserves
Share capital and premium 1,619 1,608 1,614
Non-distributable reserves (1) (3) (5)
Accumulated profits 1,833 1,492 1,976
Ordinary shareholders' funds 3,451 3,097 3,585
Minority interests 25 24 24
Total shareholders' funds 3,476 3,121 3,609
Non-current liabilities 199 249 214
Long-term loans 6 7 6
Deferred taxation liability 97 133 107
Deferred income 66 81 74
Retirement benefit obligation 30 28 27
Current liabilities 1,063 962 768
Trade and other payables 1,037 944 708
Provisions 26 18 47
Current taxation - - 13
Total equity and liabilities 4,738 4,332 4,591
Future capital expenditure
Contracted - 29 6
Authorised by the directors but not yet contracted 487 177 437
Group cash flow statements
Half-year Half-year Year
ended ended ended
30 September 30 31
2004 September March
Rm 2003 2004
Rm Rm
(Unaudited) (Unaudited) (Audited)
Trading profit 340 226 1,040
Depreciation 126 108 217
Non-cash items 17 26 1
Decrease/(increase) in working capital 150 88 (126)
Cash generated from operating activities 633 448 1,132
Dividend income received 16 13 28
Normal taxation paid (216) (244) (394)
Secondary tax on companies paid (42) (35) (42)
Net cash inflow from operating activities 391 182 724
Finance income received 36 46 73
Finance costs paid (16) (3) -
Dividends paid (353) (290) (366)
Net cash retained 58 (65) 431
Cash utilised in investment activities
Investment to maintain and upgrade operations (118) (135) (209)
Investment to expand operations (80) (139) (241)
Proceeds on disposal of assets 4 26 41
Net cash invested (194) (248) (409)
Cash effects of financing activities
Long-term loans repaid - (2) (5)
Premium on issue of share capital used for share
options
5 9 15
Net cash received 5 7 10
(Decrease)/increase in cash and cash equivalents
(131) (306) 32
Balance at the beginning of the period 802 773 773
Currency translations - (5) (3)
Balance at the end of the period 671 462 802
Statements of changes in equity
Ordinary Ordinary Non-distri-butable Accu-mulated Ordinary Minority Total
share share reserves profits share-holders' interests share-holders'
premium funds funds
capital
Rm Rm Rm Rm Rm Rm Rm
Balance at 31 March 2003 1 1,598 2 1,652 3,253 21 3,274
Premium on issue of share - 9 - - 9 - 9
capital used for share
options
Foreign currency - - (5) - (5) (2) (7)
translation differences
Net profit for the period - - - 129 129 5 134
Dividend - - - (289) (289) - (289)
Balance at 30 September 1 1,607 (3) 1,492 3,097 24 3,121
2003
Premium on issue of share - 6 - - 6 - 6
capital used for share
options
Foreign currency - - (2) - (2) (4) (6)
translation differences
Net profit for the period - - - 559 559 6 565
Dividend - - - (75) (75) (2) (77)
Balance at 31 March 2004 1 1,613 (5) 1,976 3,585 24 3,609
Premium on issue of share - 5 - - 5 - 5
capital used for share
options
Foreign currency - - 4 - 4 (3) 1
translation differences
Net profit for the period - - - 210 210 4 214
Dividend - - - (353) (353) - (353)
Balance at 30 September 1 1,618 (1) 1,833 3,451 25 3,476
2004
By order of the board
MJ Bowman V Pillay
Managing director Financial director
27 October 2004
Directorate and administration
Non-executive chairman
EAG Mackay
Independent non-executive directors
MP Adonisi
PM Bester
Non-executive directors
JA Mabuza
MI Wyman (British)
Executive directors
MJ Bowman (managing director)
EM Borcherds
TK Gibbon
HBB Lloyd
V Pillay
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 Investor Services 2004 (Proprietary) Limited
70 Marshall Street
Johannesburg 2001
P.O. Box 61051
Marshalltown 2107
South Africa
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKFKQOBDKDKB
The information on this page was delivered via a feed from the London Stock Exchange's Regulatory News Service.