KWV exports slow down
2005-09-22
THE continuing strength of the rand during the past financial year, coupled with extremely competitive conditions in international markets, has led to a decline of 9,7% in export turnover, KWV has reported.
However, turnover on local markets increased by 13,6%, attributable mainly to growth in sales volumes of KWV brandy. The turnover of bulk spirits on the local market also grew by 5,8% while sales of grape juice concentrate showed a marginal increase.
KWV increased its headline earnings by 31,5% in the past financial year - a year during which the company launched several landmark initiatives.
These include its BEE ownership transaction with Phetogo, the establishment of a wine mentorship programme and the completion of its first year of trading in the local market.
These initiatives supported group turnover for the year, which amounted to R1 090 million - an increase of 5,2% compared to the R1 036 million for the prior year.
The group net profit attributable to ordinary shareholders amounted to R143,7 million which is R73,2 million higher than the prior year.
Income from associated companies (before minority interests) increased by 32,4%.
The making and supply of quality bulk brandy to the leading brand owners in South Africa remains an important activity for KWV South Africa.
The company declared a 4.5c dividend per share.
Said KWV’s chief executive officer, Dr Willem Barnard: “I expect consolidation within the wine industry to continue as participants strive to achieve economies of scale."
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