WE’LL DRINK TO THAT: Excellent growth in dividends paid by SAB has ensured shareholders are smiling all the way to the bank. Picture: HERBERT MATIMBA
Participants in SAB’s black economic empowerment scheme Zenzele are R116m richer after a dividend payment the brewer declared on Thursday when it announced its financial results for the 12 months to March this year.
“We have again seen excellent growth in dividends for our Zenzele shareholders as we continue to deliver on our goal of ensuring that SAB Zenzele is a truly broad-based, innovative and value adding transaction,” SAB MD Norman Amadi said.
“One of the unique features of SAB Zenzele is the payment of dividends to shareholders from the first year, which was undertaken in order to ensure that the scheme delivers real and tangible benefits.”
The dividend represents a 23% increase from the previous year. Over the two years since the scheme was launched, a total of R210m has been paid to the scheme’s beneficiaries.
The dividends are shared among the SAB Foundation, SAB Zenzele Employee Trust and SAB Zenele Holdings. The foundation will receive R20.4m for its community-based projects, the employee trust R44.9m and Zenele Holdings, representing some 40000 black retailers, R50.7m.
The retailers received R37.9m in the prior year making their cumulative dividends in the past two years, R90m.
Amadi said though the economy was muted and consumers under pressure from rising inflation, SAB had a lot of momentum and was gaining market share.
“We have improved our commercial strength through significant targeted investments which have been largely funded by our ongoing ability to achieve cost savings.
“This is driving steady, profitable and sustainable growth. We are very pleased with the results which were achieved in a highly competitive market and a challenging economic environment.”
Amadi said the company had grown its market share in the premium beer market. SAB now held about 90% of the highly competitive market.
The soft drinks posted a pedestrian performance with volumes rising just 2%. SAB revenue grew 4% to $5.82bn (R49.3bn). The rise was higher at 8.7% on a constant currency basis.
Amadi said profitability was growing with Ebita margins rising a 100 basis to 20.1%.
Ebita advanced 9% (or 14.4% on a constant currency basis) to $1.17bn.
Meanwhile, SAB parent company SABMiller with operations around the world said yesterday that Africa and Latin America were the mainstay of the group in the financial year ended March.
SABMiller’s adjusted earnings per share edged up 12% to 214.8 US cents. Revenue was up 11% at $31.4bn.
» Revenue up 4% to $5.815bn
» Ebita grows 9% to $1.168bn
» Ebita margins improve by 100 basis points to 20.1%
» Full year dividend of R116m for BEE scheme participants
» Lager volumes grow 2% to 26,85m hectolitres
» Soft drink volumes grow 2% to 17.97m hectolitres