DB Group Limited
Half Year Financial Results for Six Months Ended 31 March 2001
Page 2 Table Summary
Page 3 & 4 Key Points
Page 5 & 6 Media Statement
Brian Blake
Group Managing Director
DB Group
TABLE SUMMARY
DB Group Limited Half Year Financial Results for six months
ended 31 March 2001
KEY POINTS
DB Group Limited Half Year Financial Results for six months ended
31 March 2001.
DB Breweries
- DB Breweries’ volume share of the total beer market continued to increase (up 1.1%).
- Net sales revenue up 3% on the previous year despite the absence of one-off sales impacts such as the 2000 supermarket
load, Millennium celebrations, and the America’s Cup.
- Cost increases arising from inflationary pressures and the lower value of the New Zealand dollar impacted unfavourably
on operating margin.
Corporate Overheads
- Restructuring of the DB Group corporate office following the discontinuation of liquor and wine operations has reduced
corporate overhead costs.
Net interest received
- Reduction in debt levels and the receipt of cash from the sale of Corbans Wines increased interest income. The
settlement of Corbans Wines resulted in the receipt of $2.1m interest earned prior to distribution to shareholders.
Gain on the sale of Corbans Wines
- The sale of Corbans Wines to Montana in October 2000 resulted in a gain of $34m. All proceeds from the sale of Corbans
Wines were distributed to shareholders in December 2000.
KEY COMPARISONS
DB Group Limited Half Year Financial Results for six months ended
31 March 2001.
OTHER INFORMATION
Shareholders' Equity
- At 31 March 2001 Shareholders' equity was $123.7 after the capital repayment to shareholders of $151.3 million (2000
$229.2 million).
Surplus Funds / Borrowings
- At 31 March 2001 the company had net cash funds of $12.1 million (2000 net borrowings $2.5 million).
Dividend
- A fully paid interim dividend of 11.5 cents per share and a supplementary dividend to non-resident shareholders of
2.029412 cents per share. These dividends will be paid on 20 June to shareholders on the register at 5.00pm on 8 June
2001. All proceeds from the sale of Corbans Wines were returned to shareholders in December 2000.
23 MAY 2001
MEDIA STATEMENT
ISSUED BY:
Brian Blake
Group Managing Director
DB Group
DB GROUP HALF YEAR RESULT CONTINUES
STRONG OPERATING PERFORMANCE
Brian Blake, Managing Director of DB Group today announced that earnings before interest and tax for the six months
ended 31 March, 2001 were $20.4 million.
Mr Blake said that the financial and operating performance for the first half of 2000/2001 has been most satisfactory.
The result no longer includes the contributions of Allied Liquor, NZ Liquor or Corbans Wines.
“This follows a strategic transformation that has had a profound impact on the size and shape of the Group. With the
divestment of non-core businesses - Corbans, Allied and NZ Liquor - DB is now 100% focused on becoming New Zealand’s
most valuable brewing company.
“The first six months has seen a very solid contribution from DB Breweries and demonstrates the success of the company’s
focus on building the value of its key brands through well positioned advertising, promotion and sponsorship. Whilst the
overall beer market has declined in volume DB Breweries has slightly increased its sales to achieve a market share gain
of 1.1%. Sales revenue has increased from $151.6 million in 2000 to $156.5 million in 2001. This is very significant
given this year’s sales result was achieved without the one-off impacts of the initial load into supermarkets, the
Millennium celebrations, or the America’s Cup.
“DB Breweries’ EBIT was marginally lower than last year given the continuing cost pressure caused by inflation and the
lower value of the New Zealand dollar.”
DB Group’s franchise business, Liquorland, now operates as a stand-alone franchise business for 12 months with 54
franchisees and 85 stores throughout New Zealand.
M/F¡K 1/2
“The franchise is performing well in a very competitive market. Liquorland management is firmly focused on assisting
franchisees’ earnings with the development and implementation of effective national promotional programmes and a robust
franchise system to support all stores.
Mr Blake concluded the announcement by saying “DB is cautiously optimistic that it will meet its operational and
financial targets for the year. The challenge will be the Group’s ability to manage costs with the continuing pressure
caused primarily by inflation and New Zealand’s fluctuating exchange rate. We will continue to focus on building the
value of our premium and mainstream brands, improving operational effectiveness and developing the skills and
professionalism of our people.”
ENDS