KWV improves performance
2008-09-18
KWV is making progress in transforming itself. Strong sales in both the local market and internationally, as well as the disposal of a number of underperforming assets, supported KWV’s robust performance over the past year. During the 2008 financial year, sales of branded products increased by 19%, headline earnings improved by 40% and operating profit from continuing operations climbed by 99,2%. KWV has declared a dividend of 12,5 cents (78,6% higher than last year). In the year under review, KWV simplified its group structure, which impacted on its shareholding in Eggers & Franke in Germany, NMK Premium Global Brands in South Africa and Vititec, previously KWV’s grape vine improvement division. Although these actions impacted negatively on group revenue, overall revenue nevertheless increased by 8,6% over the prior year due to strong sales performance of continuing operations. Roodeberg, KWV Lifestyle and KWV 10 Year Old Brandy were once again the prime drivers of growth - brands that have been developing with the company over decades. KWV CEO, Thys Loubser, expressed his satisfaction with the financial results. “KWV consistently focused on the implementation of the new strategy that we developed last year, and we are now seeing our efforts bearing fruit.” “New market opportunities have been important tests for KWV’s new structure and simplified processes. In a rapidly changing environment, KWV has improved its ability to listen to the voice of the customer and consumer.” Growth was particularly significant in Scandinavia, the United Kingdom and Canada while growth of 12% in the local market is much appreciated given the pressures on consumption created by the current economic climate.
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