S AFRICA: Distell to post strong annual earnings

By Arnold Kirkby | 29 July 2005

The Distell Group has advised its investors on the JSE Securities Exchange that, compared to 2003/4, its earnings per share and headline earnings would increase by between 25% and 35% for the year to 30 June.

The company, whose official figures are expected to be released around 17 August, attributed the increase largely to an improvement in trading income, as well as reduced financing costs and foreign exchange losses.

This will in turn impact favourably on the figures of KWV Limited, Remgro and SAB Limited (the domestic subsidiary of SABMiller), as each has a 30% stake in the Stellenbosch-based liquor company.

KWV's share is operated through its JSE listed subsidiary, in which the Paarl-based wine and brandy company retains a 55% share in the listed entity, giving it an effective 17% share of Distell.

Sectors: Wine

Companies: Distell, KWV, SAB