/ 17 August 2005

Distell reports solid earnings increase

Distell, South Africa’s largest listed wine and spirits producer, has reported a 34,1% increase in its headline earnings per share for the year to the end of June 2005, to 245,8 cents from 183,3 cents a year earlier.

The company declared a final dividend of 67 cents per share, bringing the total dividend for the year to 123 cents per share, representing a 26,8% increase on the 97 cents declared in 2004.

Announcing its final results on Wednesday, Distell said its sales revenues rose by 7% for the year to R5,95-billion, from R5,56-billion the previous year, while by volume sales were only 1,8% up at 316,4-million litres.

Operating expenses grew by 5,4% to R5,24-billion, resulting in a 19,8% increase in trading income to R712,6-million.

Lower financing costs and a substantial reduction in foreign exchange differences to only R1-million from R24,9-million the previous year helped to boost net profit attributable to ordinary shareholders by 33,7%, to R482,2-million versus R360,6-million in 2004.

Total headline earnings came in at R482,2-million, a 34,5% increase on the R358,6-million recorded the previous year. — I-Net Bridge