S AFRICA: Increased sales help lift FY profits for KWV
A sales increase of 18.8% in packaged products over the past 12 months has made up for a 28% decline in bulk spirits sales at KWV.
The South Africa-based drinks company said today (12 September) that wine sales for the year to the end of June were up by 13% year-on-year, with packaged spirits up by 35%.
The Roodeberg, KWV Lifestyle and Springbok ranges in particular helped achieve these significant increases, with Scandinavia, the UK, Canada and the domestic markets standing out. Grape juice concentrate sales also rose, by 14% for the year.
The company also jettisoned its shares in Eggers & Franke in Germany and NMK Premium Global Brands in South Africa, resulting in a net profit of ZAR46.3m (US$5.7m) after tax.
The group's operating profit from continuing operations increased 99.2% from ZAR36m to ZAR72.8m.
Operational headline earnings for the year rose from ZAR143.4m to ZAR201m, an increase of 40.1%, while total headline earnings increased by 74.8% to ZAR196.2m.
Shareholders will be able to share in the ZAR56m bounty, with KWV set to pay out 12.5c a share - an increase of 78.6% over last year's dividend. It also represents a dividend cover of 3.75 times, based on headline earnings.
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