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ASTRAL FOODS LTD - UNAUDITED INTERIM RESULTS AND DIVIDEND DECLARATION
ASTRAL FOODS LTD
(Incorporated in the Republic of South Africa)
(Registration number 1978/003194/06)
Share code ARL ISIN ZAE000029757
("the Group")
Headline earnings per share increase 29%
Net cash inflow R97 million
Net cash R130 million
- Interim dividend increase 38%
UNAUDITED INTERIM RESULTS AND DIVIDEND DECLARATION
for the six months ended 31 March 2004
Consolidated Income Statement
Unaudited Audited
Six months ended Year ended
31 March 31 March 30 Sept
2004 2003 Change 2003
R"000 R"000 % R"000
Revenue 1 935 606 2 066 287 (6) 3 947 030
Operating profit (note 3) 189 901 166 460 14 327 517
Net interest
received/(paid) 2 422 (12 575) (15 218)
Profit before tax 192 323 153 885 25 312 299
Tax (64 127) (49 346) (102 076)
Profit after tax 128 196 104 539 23 210 223
Minority interests (926) (1 113) (1 708)
Net profit for the period 127 270 103 426 23 208 515
Headline earnings (R"000)
(note 4) 128 074 101 594 26 208 257
Basic earnings per
share (cents)
Earnings per share 304,3 241,3 26 487,8
Headline earnings per share 306,2 237,1 29 487,2
Diluted earnings per
share (cents)
Earnings per share 288,4 226,4 27 457,0
Headline earnings
per share 290,2 222,5 30 456,1
Dividend per share (cents) 80,0 58,0 38 168,0
Net asset value
per share (R) 15,80 12,46 27 14,18
Shares in issue (net of
treasury shares) 41 341 422 42 840 573 42 260 903
Weighted average shares in
issue (net of
treasury shares) 41 828 216 42 854 663 42 742 565
Consolidated Balance Sheet
Unaudited Audited
Six months ended Year ended
31 March 31 March 30 Sept
2004 2003 2003
R"000 R"000 R"000
ASSETS
Non-current assets 521 572 487 352 504 753
Property, plant and
equipment 496 648 460 476 475 996
Goodwill 17 204 16 304 18 374
Investments and loans 7 720 10 572 7 526
Deferred tax 2 857
Current assets 917 545 789 549 814 181
Inventories 329 442 333 669 274 426
Receivables and
pre-payments 450 982 437 482 471 675
Cash and cash equivalents 137 121 18 398 68 080
Total assets 1 439 117 1 276 901 1 318 934
EQUITY AND LIABILITIES
Capital and reserves 653 398 533 815 599 395
Issued capital 235 985 264 769 261 455
Reserves 417 413 269 046 337 940
Minority interests 9 293 7 908 8 831
Non-current liabilities 135 827 136 108 129 357
Long-term liabilities 2 547 6 663 2 742
Deferred tax 78 432 79 405 74 916
Post-retirement medical aid
obligations 54 848 50 040 51 699
Current liabilities 640 599 599 070 581 351
Trade and other payables 596 086 524 992 524 909
Provision for tax 38 992 31 516 49 659
Short-term borrowings 4 993 42 225 6 297
Shareholders for dividend 528 337 486
Total equity and liabilities 1 439 117 1 276 901 1 318 934
Consolidated Cash Flow Statement
Unaudited Audited
Six months ended Year ended
31 March 31 March 30 Sept
2004 2003 2003
R"000 R"000 R"000
Cash operating profit 230 579 200 227 412 607
Working capital changes 36 543 (1 409) 12 571
Capital investment to
maintain operations (17 510) (14 797) (32 998)
Cash generated from
operations 249 612 184 021 392 180
Interest received(paid) 2 422 (12 575) (15 218)
Tax paid (68 365) (58 718) (90 415)
Dividends paid (45 871) (25 862) (50 644)
Cash inflow from operating
activities 137 798 86 866 235 903
Net cash outflow to
investing activities (40 306) (9 591) (55 814)
Net cash inflow for the period 97 492 77 275 180 089
Net cash outflow to financing
activities (26 969) (82 414) (133 687)
Net increase in cash and cash
equivalents 70 523 (5 139) 46 402
Effects of exchange
rate changes (1 482) (4 937) (6 796)
Cash and cash
equivalent balances
at beginning of period 68 080 28 474 28 474
Cash and cash equivalent
balances at end of period 137 121 18 398 68 080
Statement of Changes in Equity
Unaudited Audited
Six months ended Year ended
31 March 31 March 30 Sept
2004 2003 2003
R"000 R"000 R"000
Balance beginning of year 599 395 462 417 462 417
Profit for the period 127 270 103 426 208 515
Movement in currency
translation difference
during the period (1 884) (5 442) (7 562)
Dividend paid (45 913) (26 149) (51 130)
Decrease in share capital
as result of buy-in of shares (25 470) (437) (12 005)
Disposal of subsidiary (840)
Balance at end of period 653 398 533 815 599 395
Segmental Reporting
Unaudited Audited
Six months ended Year ended
31 March 31 March 30 Sept
2004 2003 Change 2003
R"000 R"000 % R"000
Rm Rm Rm
Revenue
Animal Nutrition 1 269,3 1 439,5 (12) 2 681,0
Poultry 1 093,3 1 097,8 2 167,9
Inter group (427,0) (471,0) (901,9)
1 935,6 2 066,3 (6) 3 947,0
Operating profit
Animal Nutrition 69,1 68,6 1 153,4
Poultry 120,8 97,9 23 174,1
189,9 166,5 14 327,5
Notes
1. Accounting policies
The financial statements of the Group are prepared in accordance with
and comply with the South African Statements of Generally Accepted
Accounting Practice.
The financial statements are prepared under the historical cost
convention, as modified by the restatement of certain financial
instruments. The accounting policies of the Group are consistent in all
material respects with those applied in the previous financial year.
31 March 31 March 30 Sept
2004 2003 2003
R"000 R"000
R"000
2. Capital commitments
Capital expenditure commitments 44 051 14 152 39 111
Earlybird acquisition 250 000
3. Operating profit
The following items have been
accounted for in
the operating profit:
Amortisation of goodwill 1 170 1 002 2 000
Depreciation on property, plant
and equipment 36 881 33 229 66 744
Profit on sale of interest
in business units 2 430 2 726
4. Reconciliation to headline earnings
Net profit for the period 127 270 103 426 208 515
Profit on sale of interest in
business units (2 430) (2 726)
Profit on sale of property, plant
and equipment (366) (404) (1 580)
Amortisation of goodwill 1 170 1 002 2 000
Write-off of loans 2 048
Headline earnings for the year 128 074 101 594 208 257
Financial overview
The Group reported an increase in headline earnings per share of 29%
from 237,1 cents to 306,2 cents. This increase includes 3% attributable
to the share buy-in program.
Revenue reduced by 6% from R2,066 million to R1,936 million following
the decrease in the price of raw materials. The average Safex spot
prices of yellow maize, the Group"s main feed ingredient, reduced by 10%
from R1,269 per ton to R1,147 per ton.
Net margins for the group improved from 8,0% to 9,8%.
The tax rate of 33,3% is up on the previous year"s 32,1%.
The interim dividend was increased from 58 cents to 80 cents per share.
This increase of 38% also reflects the board"s intention to reduce the
differential between interim and final dividends.
The balance sheet reflects an increase in the net asset value per share
to R15,80 (2003: R12,46).
The strong cash generation from operating activities of R138 million
(2003: R87 million) resulted in a net surplus cash balance of R130
million (2003: R30 million net borrowing). Cash outflow to investing
activities of R40 million (2003: R10 million) consists mainly of
expansion capital expenditure. Cash outflow to financing activities of
R27 million reflects the effect of the share buy-in program (2003: R82
million repayment of debt).
Operational overview
Animal Nutrition Division
Operating profit increased by 1% from R68,6 million to R69,1 million
following a 14% decrease in realisations as a result of the lower raw
material costs. The exceptional low cost procurement of maize the
previous year was not repeated due to a more stable market and rand.
Operating margins, however, improved to 5,4% (2003: 4,8%) due mainly to
a 2% volume increase. Strict margin management and credit control
underline the satisfactory performance by this division.
Poultry Division
Operating profit increased by 24% to R121 million (2003: R98 million)
despite realisation being 4% lower. The benefit of reduced feed costs
was the major contributor to the excellent performance. A 4% sales
volume increase also contributed to margins increasing to 11,0% (2003:
8,9%). National Chicks reported a gratifying increase in profitability.
Only the existing 50% interest in Earlybird was consolidated into the
Group results.
Acquisition of Earlybird
Shareholders were notified in a circular dated 31 March 2004 of the
proposed acquisition by the Group of the remaining 50% shareholding in
Earlybird Farm (Pty) Limited. The transaction is subject to the approval
by the Competition Authorities of South Africa which decision is
expected towards the end of the financial year.
Prospects
Global raw material prices are expected to firm in rand terms, with
resultant upward pressure on input costs. The outlook for the remainder
of the financial year is bound to be less buoyant than the trading
results reported to date.
Declaration of ordinary dividend no. 7
Notice is hereby given that dividend no.7 of 80 cents per ordinary share
has been declared in respect of the six months ended 31 March 2004.
2004
Last date to trade cum-dividend Friday, 9 July
Shares commence trading ex-dividend Monday, 12 July
Record date Friday, 16 July
Payment of dividend Monday, 19 July
Share certificates may not be dematerialised or rematerialised between
Monday, 12 July 2004 and Friday, 16 July 2004, both days inclusive.
On behalf of the board
J L van den Berg N C Wentzel
Chairman Chief Executive Officer
Pretoria
20 May 2004
Country Fair
Earlybird Farm
CAL Labs
Ross
NuTec Explicit Nutrition
Meadow
VS
National Chicks
Registered office
Block E, Castle Walk Office Park,
Erasmuskloof, Pretoria.
Postnet 329, Private Bag X10, Elarduspark, 0048
Telephone: (012) 347-5077
Website address: www.astralfoods.com
Directors
J L van den Berg (Chairman), *N C Wentzel (Chief Executive Officer),
*#T Pritchard (Financial Director) *M A Kingston, J J Geldenhuys,
E M Groeneweg, C G van Veyeren, M Macdonald, T C C Mampane
(*Executive director) (#Company secretary)
Transfer secretaries
Computershare Investor Services 2004 (Pty) Ltd
PO Box 1053
Johannesburg, 2000
Telephone: (011) 370-5000
Sponsor
HSBC Investment Services (Africa)
(Proprietary) Limited
HSBC Place, 6 9 Riviera Road,
Houghton, 2198
Date: 21/05/2004 07:00:19 AM Supplied by www.sharenet.co.za
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