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Zambian Breweies PLC Interim Results for 6 months to 30 September 2008
21 November 2008
The Directors of Zambian Breweries PLC have pleasure in announcing the unaudited consolidated results of the operations of the company and its wholly-owned subsidiaries for the 6 month period ended 30 September 2008
| 6 months to 30 September 2008 K million | 6 months to 30 September 2007 K million | % change | |
|---|---|---|---|
| Summarised Income Statement | |||
| Revenue | 328,483 | 294,408 | 11.57% |
| Discount | 2,167 | 1,445 | 49.96% |
| Excise | 93,347 | 83,083 | 12.35% |
| Net Revenue | 232,969 | 209,880 | 11.00% |
| Profit before interest and tax | 35,872 | 34,669 | 3.47% |
| Profit before taxation | 30,949 | 31,189 | -0.77% |
| Taxation | 12,070 | 12,291 | -0.02% |
| Profit after taxation | 18,879 | 18,898 | -1.80% |
| EPS & INTERIM DIVIDEND: | | ||
| Number of shares in issue at period end | 364,000,000 | 364,000,000 | 0 |
| Earnings Per Share (Kwacha) | 51.86 | 51.92 | -0.12% |
| Interim Dividend Per Share (Kwacher) | 36.00 | 36.00 | 0 |
Financial Performance
The first half of the Financial Year saw strong underlying growth on beer sales volume registering 12.2% above prior year. Significant growth was noted on Eagle Lager, which contributed close to 15% of total beer sales volumes for the period. This growth could have been stronger had it not been for a shortage of empty bottles which, in turn, was caused by a regional shortage of glass production capacity.
Sparkling Beverages sales volumes were 2.7% behind prior year. This was mainly a result of a shortage of glass and out of stock of Sugar towards the end of the first quarter.
Despite this, the Group managed an impressive double digit growth of 11% on Net Revenue.
Increases in fuel and cost of major raw materials negatively impacted on Profit before interest and tax. However, overall good cost control allowed most of the increase in Net Revenue to flow to the bottom line with Profit before Interest and Tax increasing by 3.47%.
Finance Charges for the period increased by almost half of prior year on account of increased Capital Expenditure Program on projects which are targeted at enhancing the Groups' future manufacturing capability through improved throughput, quality and cost efficiency.
Dividends
In line with the company's dividend policy, an interim dividend of K 36.00 per share will be recommended.
Prospects for the period ahead:
Glass availability for both Beer and Sparkling Beverages has been a major challenge in achieving sustained sales volume growth. However, with the Group's continued focus on improvements in the production, selling, distribution, marketing and procurement capabilities coupled with steady supply of glass from the regional suppliers, it is expected that sales volumes will register positive growth in the second half of the financial year.
Whilst the above are key ingredients in achieving set business targets for the year, the group is of the view that continued focus on and management of the exchange rates, interest rates, inflation rates and fuel prices are cardinal to registering sustained business growth.
By order of the Board
Ezekiel C Sekele
Company Secretary
21 October 2008
ZAMBIAN BREWERIES PLC
Interim Dividend
At a Board Meeting held on 21 October 2008, the Board of Directors proposed an interim dividend of K36.00 per share for the 6 months period ended 30 September 2008.
In accordance with the requirements of the Securities and Exchange Act (Act No. 38 of 1993), notice is hereby given that the dividend shall be paid, on or around Wednesday 31st December 2008, to shareholders registered in the company's books at close of business on Friday 12 December 2008.
By order of the Board
Ezekiel C Sekele
Company Secretary
21 October 2008
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