News

SOUTH AFRICA: KWV maintains headline earnings in tough conditions

Most popular

Why water has become more important than wine

Should Campari Group be renamed Aperol Group?

just-drinks speaks to A-B InBev CEO Carlos Brito

Stoli Group’s AC/DC Thunderstruck Tequila- Comment

MORE
The KWV Group succeeded in not only maintaining its headline earnings for the six-month period to 31 December 2000, but achieved a 1.9% increase. This is in spite of a 20.8% reduction in the attributable income from the group's associate company Distell and continued pressure on sales in the local liquor market.

Headline earnings for the group are R59.2m ($7.41m), compared with R58.1m ($7.27m) for the same period in 1999, according to the group's interim report released to shareholders today.

Headline earnings per share were up 2% from 14.9c to 15.2c, while no share dividends were issued.

Income for the period was marginally higher at R478.4m ($59.8m) compared with R471.2m ($58.9m) for the same period in 1999.

The KWV Group said that due to the seasonal nature of wine and brandy sales, the largest portion of the group's turnover was generated during the first six months of the financial year and was not expected to be repeated in the second half. This trend was accounted for in the group's business plan for the full year.

It was also expected that there would be a further negative effect on the group results for the full year as a result of the reduction in equity income from Distell. This expectation is in accordance with the profit warning issued by Distell in December and ongoing difficult conditions in the domestic market.

Besides exporting wine and spirits products, KWV also produces 50% of all brandy in South Africa. This segment of the market has been under extreme pressure for the past three years.

The KWV group also has a 25% share in Ceres Fruit Juices, a Cape-based natural fruit juice company.


Companies: KWV Ltd, Distell

Related Content

Sales up mid-single-digits in FY-2017 as Distell looks to simplify structure - results

Sales up mid-single-digits in FY-2017 as Distell looks to simplify structure - results...

Strong Q1 despite

Strong Q1 despite "murkiness" puts Coca-Cola in driving seat against peers - Analysis...

Kirin's troubles in Brazil - When BRIC markets go horribly wrong - Editor's Viewpoint

Kirin's troubles in Brazil - When BRIC markets go horribly wrong - Editor's Viewpoint...

Anheuser-Busch InBev in Africa - Focus

Anheuser-Busch InBev in Africa - Focus...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?