Review of Operations
Other Beverage Interests
 
2003 
2002 
Financial summary
US$m 
US$m 
% change 
Turnover
788 
676 
17 
– ABI
594 
500 
19 
EBITA
120 
95 
27 
– ABI
98 
79 
24 
EBITA margin (%)
15.3 
14.0 
 
– ABI
16.5 
15.8 
 
       
Sales volume (hls 000s)      
Soft drinks
12,489 
11,912 
ABI
24,063 
11,488 
 
Far left
Appletiser bottling line,
Western Cape, South Africa
 
Amalgamated Beverage Industries (ABI)
The South African consumer environment improved during the second half of the year under review, assisted by a strengthening of the rand and favourable tax measures in the recent Government budget. Against this background ABI succeeded in delivering good results, through volume growth and overhead productivity gains.

Sales volume grew 5% in the year: 4.1% in CSDs, and 22.3% in other soft drinks. This strong growth was a function of the good weather conditions, continued improvement in market execution, and organic as well as market share growth in certain areas of the expanding other soft drinks category.

Increased input costs and the adverse effect of mix changes towards lower margin returnable glass packs were countered by strong productivity gains, leading to
a 24% increase in EBITA.  

Appletiser
Appletiser recorded a significantly increased trading profit, building upon last year's successes with further volume growth in all markets other than the United Kingdom. Focused brand activity to increase consumer awareness and Appletiser brand equity in the United Kingdom has recently been implemented. Sales volumes in the remaining international markets grew 10%. Combined volumes for Appletiser and Grapetiser grew 16% in South Africa.
 
Distell
The group's 30% equity accounted listed associate, Distell, achieved sales volume growth in its domestic and international markets. Operating profit was significantly better, assisted by favourable sales mix at improved overall margins.
 

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