SOUTH AFRICA: No dividend, but KWV Group headline earnings up
The KWV Group announced that it would not be declaring a dividend for the year ending June 2001, in spite of increased headline earnings of 22.4%, up to R51.5m (US$5.6m), compared with R42m in 2000.
According to the group's annual report, which has just been released, the growth in headline earnings was directly attributable to an increase in export turnover, as well as improvements in production efficiency and overall cost control.
These countered the declining brandy market and lower grape juice concentrate prices on the international market.
The extensive fiscal discipline also included staff reductions towards the end of the financial year. The retrenchment costs to the group have totalled R2.65m so far. A group of 10 senior staffers are now instituting legal action as a result of these retrenchments, claiming unfair dismissal.
An attributable loss of R3.6mwas incurred, compared with a R47.7m profit in 2000. This decline was blamed on a decrease in earnings of R25m from KWV's associate company Distell.
During the year under review the group's capital expenditure amounted to R39.7m, with main expenditure going on wine maturation barrels, the upgrading of cellar and bottling equipment.
This follows a consolidated cash flow statement that showed a net cash inflow of R36m compared with an outflow of R19.4m in 2000 from operating activities.
The group's consolidated cash statement showed a net inflow of R36m, compared with an outflow of R19.4m in 2000, from operating activities. The improvement was mainly attributable to a R39.6m reduction in inventory, a turn around from the R7.7m increase in 2000, as well as a reduction in taxation paid.
Unfortunately the cash inflow generated from operating activities was, however, not sufficient to finance the expenditure on fixed assets. This accordingly contributed to the slight decline of R3.3m in cash and cash equivalents for the year.
It was against the background of the cash flow situation that the directors decided not to declare a dividend for the year.
There's nothing else like it in the just-drinks calendar. Three days, one venue and almost all our contacts, clients and collaborators under one roof. This year's London International Wine & Spirit Fa...
The flavouring scandal that rocked KWV at the end of last year has been the trigger for an upheaval in the way the South African leader will approach winemaking in the future. Chris Brook-Carter spoke...
Distell today announced its broad-based transformation plans between a black economic empowerment group, certain employees and a corporate social investment trust (CSI Trust)....
KWV International has launched the second phase of its assault on the South African market with the introduction of its KWV 3-year-old brandy and Cathedral Cellar and KWV Classic ranges as it expands ...
After more than three months of negotiations, 94 employees at KWV SA, the production wing of KWV Limited, have taken either a severance package, early retirement or have been retrenched. Originally 10...
Distell has appointed Don Gallow as its new director of international operations, in place of Etienne Heyns who left the company two weeks ago. ...
Distell's headline earnings have rocketed by 34.5% to ZAR482.2m (US$75.2m) for the year to 30 June, thanks to improved performance from all the company's assets....
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 ...
- What's so special about Islay anyway? - Comment
- Six key trends for alcoholic drinks in 2016
- Diageo gets 2016 off to a strong start - Analysis
- With MegaBrew sorted, is MegaBev next? - Research
- What do Bourbon and craft beer have in common?
- Bacardi ups ante in US Havana Club row
- The US is "the first place I look" - Diageo CEO
- Alcohol industry warning over Kroger plan
- SABMiller hits back in UK corporation tax row
- Suntory bids for Lucozade, Ribena Nigerian network
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research