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Johannesburg - Paarl-based liquor group KWV Holdings has rewarded its shareholders with a generous dividend for the year to end-June.
On Tuesday KWV - which produces well known brandy brands as well as wines like Roodeberg and Café Culture - proposed a maiden dividend of 27c/share as well as a special payout of 7c/share.
The 7c/share payout follows the sale on non-core assets like the company's juice concentrate plant in the Northern Cape.
The dividend payouts are not that surprising since KWV - after undertaking a R150m rights issue in 2009 - has an excess of capital.
Cash flow from KWV's operations was R67m for the financial year, while the balance sheet still showed cash of almost R170m.
Operationally, KWV's turnover was up 5% to R729m while net profit from continuing operations came in at R78m.
KWV CEO Thys Loubser said the company's best performing brands were Roodeberg, Café Culture and Cathedral Cellar. Sales for Café Culture and Cathedral Cellar grew by more than 20%.
KWV - which earns most of its keep from export markets - reported that packed volumes were up 10% while its bulk business jumped 50%.
Loubser said locally KWV showed a solid performance by growing its market share in a declining brand category.
Overall, though, Loubser conceded that overall KWV did not deliver the growth it was aiming for.
But KWV's trading margins shifted encouragingly from 36.6% last year to 38%.
Loubser said margin enhancements were driven by a decision to protect margins rather than purely driving volumes in markets where consumers are under economic pressure.
- Fin24.com
On Tuesday KWV - which produces well known brandy brands as well as wines like Roodeberg and Café Culture - proposed a maiden dividend of 27c/share as well as a special payout of 7c/share.
The 7c/share payout follows the sale on non-core assets like the company's juice concentrate plant in the Northern Cape.
The dividend payouts are not that surprising since KWV - after undertaking a R150m rights issue in 2009 - has an excess of capital.
Cash flow from KWV's operations was R67m for the financial year, while the balance sheet still showed cash of almost R170m.
Operationally, KWV's turnover was up 5% to R729m while net profit from continuing operations came in at R78m.
KWV CEO Thys Loubser said the company's best performing brands were Roodeberg, Café Culture and Cathedral Cellar. Sales for Café Culture and Cathedral Cellar grew by more than 20%.
KWV - which earns most of its keep from export markets - reported that packed volumes were up 10% while its bulk business jumped 50%.
Loubser said locally KWV showed a solid performance by growing its market share in a declining brand category.
Overall, though, Loubser conceded that overall KWV did not deliver the growth it was aiming for.
But KWV's trading margins shifted encouragingly from 36.6% last year to 38%.
Loubser said margin enhancements were driven by a decision to protect margins rather than purely driving volumes in markets where consumers are under economic pressure.
- Fin24.com
