MIRA
INFORM REPORT
|
Report Date : |
16.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ZAMBIAN BREWERIES PLC |
|
|
|
|
Registered Office : |
Plot 6438 Mungwi Road, Industrial Area, Lusaka |
|
|
|
|
Country : |
Zambia |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Year of Establishment : |
1993 |
|
|
|
|
Com. Reg. No.: |
2947 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Production and Distribution of Beer and Soft Drinks in Zambia. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 1,000,000.00 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
Company
Name
Zambian Breweries Plc
Company acronym:
ZB
Contact Information
|
Address |
Plot 6438 Mungwi Road, Industrial Area, Lusaka Zambia |
|
Postal Address |
P O BOX 31293 Lusaka, Zambia |
|
Telephone |
+ 260 2112 46555 |
|
Fax |
+ 260 2112 40642 |
|
Email |
Zambrew@zamnet.zm |
History
Registration Data
|
Date of Registration |
1993 |
|
Registration number |
2947 |
|
Legal address |
Plot 6438 Mungwi Road, Industrial Area, Lusaka Zambia |
|
Legal Form |
Public Limited Company |
|
Share Capital |
- |
|
Other Registration Data |
Listed Company: 1997 |
Shareholders
with Shares
|
Shareholder Names |
Number of Shares |
Share% |
|
SABMiller Plc London, UK |
313,948,718 |
86.30% |
|
Others ( Individuals and instituations) |
50,051,282 |
13.70 |
Board/Executive
|
Name |
Mr. Wes Tiedt |
|
Position within the company |
CEO |
|
Can fluently speak |
English |
|
Background |
Wesley John Tiedt serves
as Managing Director of Zambian Breweries PLC. Mr. Tiedt joined SABMiller in 1998
in Botswana as Managing Director of Botswana Breweries Limited. He joined
National Breweries in Lusaka in May 2003 as Managing Director and was
appointed a director of Chibuku Products Limited of Malawi from May 2003. He
has 30 years experience in opaque beer and related products. |
|
Board of Directors Membership |
Managing Director and Director Managing Director and Director |
|
Name |
Mr. Roy Cornish |
|
Position within the company |
Finance Director, Director and Finance Director of Zambian Breweries
Group |
|
Country of Birth |
Zambia |
|
Nationality |
Zambian |
|
Can fluently speak |
English |
|
Background |
Roy Cornish has been Finance Director of Zambian Breweries Group since
March 3, 2006. Mr. Cornish joined SABMiller in 1995 as a Senior Financial
Manager with the international division. From 1996 to 2000 he was based in
Budapest as the Financial Director of SABMiller's Hungarian breweries, which
was followed by two years in Johannesburg in the Africa & Asia regional
head office. He serves as Director of Zambian Breweries plc. He is a UK
chartered accountant who has worked previously in Zambia and Nigeria. |
|
Name |
Mr. P. Gowero B.Sc.Econ |
|
Position within the company |
Director |
|
Country of Birth |
Zambia |
|
Nationality |
Zambian |
|
Can fluently speak |
English |
|
Name |
Mr. David Bowa |
|
Position within the company |
Marketing Director |
|
Country of Birth |
Zambia |
|
Nationality |
Zambian |
|
Can fluently speak |
English |
|
Name |
Mr. Nyangu Kayamba |
|
Position within the company |
Human Resources Director |
|
Country of Birth |
Zambia |
|
Nationality |
Zambian |
|
Can fluently speak |
English |
|
Name |
Mr. Orwell Monga |
|
Position within the company |
Plant Manager |
|
Country of Birth |
Zambia |
|
Nationality |
Zambian |
|
Can fluently speak |
English |
Changes in
Registration Data
None recorded
Activities (
realistic and officials)
The subject engages in the production and distribution of beer and soft
drinks in Zambia. The company is based in Lusaka, Zambia.
Staff
|
Number of staff employed |
1097 |
Export/Import
( Countries, goods and total values for the period)
|
Imports From |
Italy, UK, Scotland, Russia, USA, France |
|
Importing Terms |
Acceptance credit |
|
Import % and type of product |
20% - Finished Products |
|
Exports To |
Worldwide |
|
Exporting Terms |
Letters of Credit |
|
Export % and type of product |
30%- Finished Products |
Facilities
|
Owned |
Office, Warehouse, Factories |
Subsidiaries
and Participation
|
Subsidiaries |
Zambia Bottlers Limited, Copperbelt Bottling Limited and Northern Breweries
Limited |
Branches
|
Address |
74 Independence Ave Ndola, Copperbelt Zambia P O BOX 70091 |
Bankers
|
Bank |
Zambia National Commercial Bank |
Suppliers,
Partners
|
Suppliers |
Not known |
Litigation,
Remarks on Payment
|
Litigation |
None Recorded |
|
Remarks on Payment |
No Complaints |
Financial
Information
Source: Chamber of Commerce
Income Statement
|
Currency in |
As of: |
Mar 31 |
Mar 31 |
Mar 31 |
Mar 31 |
|
Revenues |
279,844.0 |
328,116.0 |
352,916.0 |
373,900.0 |
|
|
TOTAL REVENUES |
279,844.0 |
328,116.0 |
352,916.0 |
373,900.0 |
|
|
Cost of Goods Sold |
102,559.0 |
123,625.0 |
173,156.0 |
202,644.0 |
|
|
GROSS PROFIT |
177,285.0 |
204,491.0 |
179,760.0 |
171,256.0 |
|
|
Selling General & Admin Expenses,
Total |
24,523.0 |
21,156.0 |
94,913.0 |
92,843.0 |
|
|
Other Operating Expenses |
110,952.0 |
121,932.0 |
9,751.0 |
8,887.0 |
|
|
OTHER OPERATING EXPENSES, TOTAL |
135,475.0 |
143,088.0 |
104,664.0 |
101,730.0 |
|
|
OPERATING INCOME |
41,810.0 |
61,403.0 |
75,096.0 |
69,526.0 |
|
|
Interest Expense |
-8,609.0 |
-4,622.0 |
-6,456.0 |
-6,649.0 |
|
|
Interest and Investment Income |
343.0 |
281.0 |
229.0 |
287.0 |
|
|
NET INTEREST EXPENSE |
-8,266.0 |
-4,341.0 |
-6,227.0 |
-6,362.0 |
|
|
Currency Exchange Gains (Loss) |
-491.0 |
-314.0 |
173.0 |
551.0 |
|
|
Other Non-Operating Income (Expenses) |
-- |
-- |
-- |
-2.0 |
|
|
EBT, EXCLUDING UNUSUAL ITEMS |
33,053.0 |
56,748.0 |
69,042.0 |
63,713.0 |
|
|
EBT, INCLUDING UNUSUAL ITEMS |
33,053.0 |
56,748.0 |
69,042.0 |
63,713.0 |
|
|
Income Tax Expense |
13,030.0 |
23,354.0 |
28,352.0 |
19,454.0 |
|
|
Earnings from Continuing Operations |
20,023.0 |
33,394.0 |
40,690.0 |
44,259.0 |
|
|
NET INCOME |
20,023.0 |
33,394.0 |
40,690.0 |
44,259.0 |
|
|
NET INCOME TO COMMON INCLUDING EXTRA ITEMS |
20,023.0 |
33,394.0 |
40,690.0 |
44,259.0 |
|
|
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS |
20,023.0 |
33,394.0 |
40,690.0 |
44,259.0 |
|
Balance Sheet
|
Currency in |
As of: |
Mar 31 |
Mar 31 |
Mar 31 |
Mar 31 |
|
Assets |
|
|
|
|
|
|
Cash and Equivalents |
9,450.0 |
12,499.0 |
19,595.0 |
4,971.0 |
|
|
TOTAL CASH AND SHORT TERM INVESTMENTS |
9,450.0 |
12,499.0 |
19,595.0 |
4,971.0 |
|
|
Accounts Receivable |
5,889.0 |
12,096.0 |
6,545.0 |
11,831.0 |
|
|
Other Receivables |
7,796.0 |
20,696.0 |
14,028.0 |
35,999.0 |
|
|
TOTAL RECEIVABLES |
13,685.0 |
32,792.0 |
20,573.0 |
47,830.0 |
|
|
Inventory |
25,548.0 |
33,183.0 |
60,521.0 |
58,859.0 |
|
|
TOTAL CURRENT ASSETS |
48,683.0 |
78,474.0 |
100,689.0 |
111,660.0 |
|
|
Gross Property Plant and Equipment |
176,080.0 |
215,876.0 |
273,139.0 |
306,610.0 |
|
|
Accumulated Depreciation |
-42,495.0 |
-60,693.0 |
-91,076.0 |
-109,092.0 |
|
|
NET PROPERTY PLANT AND EQUIPMENT |
133,585.0 |
155,183.0 |
182,063.0 |
197,518.0 |
|
|
Goodwill |
71,987.0 |
71,987.0 |
71,987.0 |
71,987.0 |
|
|
Other Long-Term Assets |
-- |
-- |
244.0 |
236.0 |
|
|
TOTAL ASSETS |
254,255.0 |
305,644.0 |
354,983.0 |
381,401.0 |
|
|
|
|
|
|
|
|
|
LIABILITIES & EQUITY |
|
|
|
|
|
|
Accounts Payable |
14,282.0 |
25,890.0 |
15,910.0 |
34,507.0 |
|
|
Accrued Expenses |
28,527.0 |
62,361.0 |
28,311.0 |
15,450.0 |
|
|
Short-Term Borrowings |
25,000.0 |
21,299.0 |
95,378.0 |
61,692.0 |
|
|
Current Portion of Long-Term Debt/Capital
Lease |
-- |
-- |
1,178.0 |
1,178.0 |
|
|
Current Portion of Capital Lease
Obligations |
-- |
-- |
1,178.0 |
1,178.0 |
|
|
Current Income Taxes Payable |
-- |
1,554.0 |
7,593.0 |
-- |
|
|
Other Current Liabilities, Total |
30,710.0 |
22,851.0 |
18,093.0 |
38,326.0 |
|
|
TOTAL CURRENT LIABILITIES |
98,519.0 |
133,955.0 |
166,463.0 |
151,153.0 |
|
|
Capital Leases |
-- |
-- |
2,902.0 |
2,267.0 |
|
|
Unearned Revenue, Non-Current |
-- |
-- |
518.0 |
330.0 |
|
|
Deferred Tax Liability Non-Current |
7,539.0 |
14,028.0 |
10,773.0 |
37,548.0 |
|
|
TOTAL LIABILITIES |
106,058.0 |
147,983.0 |
180,656.0 |
191,298.0 |
|
|
Common Stock |
364.0 |
364.0 |
364.0 |
364.0 |
|
|
Additional Paid in Capital |
99,474.0 |
99,474.0 |
99,474.0 |
99,474.0 |
|
|
Retained Earnings |
28,861.0 |
57,823.0 |
74,489.0 |
90,265.0 |
|
|
Comprehensive Income and Other |
19,498.0 |
-- |
-- |
-- |
|
|
TOTAL COMMON EQUITY |
148,197.0 |
157,661.0 |
174,327.0 |
190,103.0 |
|
|
TOTAL EQUITY |
148,197.0 |
157,661.0 |
174,327.0 |
190,103.0 |
|
|
TOTAL LIABILITIES AND EQUITY |
254,255.0 |
305,644.0 |
354,983.0 |
381,401.0 |
|
Cash Flow
|
Currency in |
As of: |
Mar 31 |
Mar 31 |
Mar 31 |
Mar 31 |
|
NET INCOME |
20,023.0 |
33,394.0 |
40,690.0 |
44,259.0 |
|
|
Depreciation & Amortization |
17,415.0 |
18,952.0 |
32,283.0 |
19,996.0 |
|
|
Amortization of Goodwill and Intangible
Assets |
4,176.0 |
-- |
-- |
-- |
|
|
DEPRECIATION & AMORTIZATION, TOTAL |
21,591.0 |
18,952.0 |
32,283.0 |
19,996.0 |
|
|
Amortization of Deferred Charges |
8,757.0 |
-- |
-- |
-- |
|
|
(Gain) Loss from Sale of Asset |
-1,113.0 |
1,575.0 |
144.0 |
-124.0 |
|
|
Asset Writedown & Restructuring Costs |
-- |
-18,559.0 |
-- |
16,530.0 |
|
|
Other Operating Activities |
-9,163.0 |
1,738.0 |
2,784.0 |
5,394.0 |
|
|
Change in Accounts Receivable |
-1,232.0 |
-19,904.0 |
-27,338.0 |
-13,469.0 |
|
|
Change in Inventories |
507.0 |
-7,635.0 |
12,219.0 |
1,662.0 |
|
|
Change in Accounts Payable |
-- |
54,907.0 |
-30,998.0 |
24,512.0 |
|
|
Change in Other Working Capital |
24,000.0 |
-- |
-- |
-- |
|
|
CASH FROM OPERATIONS |
63,370.0 |
64,468.0 |
29,784.0 |
98,760.0 |
|
|
Capital Expenditure |
-45,418.0 |
-23,869.0 |
-59,910.0 |
-52,208.0 |
|
|
Sale of Property, Plant, and Equipment |
1,420.0 |
303.0 |
359.0 |
359.0 |
|
|
CASH FROM INVESTING |
-43,998.0 |
-23,566.0 |
-59,551.0 |
-51,849.0 |
|
|
Long-Term Debt Issued |
-- |
-- |
3,420.0 |
-- |
|
|
TOTAL DEBT ISSUED |
-- |
-- |
3,420.0 |
-- |
|
|
Long Term Debt Repaid |
-- |
-- |
-- |
-2,551.0 |
|
|
TOTAL DEBT REPAID |
-- |
-- |
-- |
-2,551.0 |
|
|
Common Dividends Paid |
-12,740.0 |
-16,828.0 |
-24,024.0 |
-28,483.0 |
|
|
TOTAL DIVIDEND PAID |
-12,740.0 |
-16,828.0 |
-24,024.0 |
-28,483.0 |
|
|
CASH FROM FINANCING |
-12,740.0 |
-16,828.0 |
-20,604.0 |
-31,034.0 |
|
|
NET CHANGE IN CASH |
6,632.0 |
24,074.0 |
-50,371.0 |
15,877.0 |
|
Representation
|
Auditors |
Price Waterhouse Coopers |
|
Solicitors |
- |
Reporter Comments
|
Comments |
In the interview conducted with Mrs. Y. Ahiabor ( Office Manager) , she declined bank
account number citing the grounds of company confidentiality. |
|
Local Reputation |
The company being investigated is believed by local reporters to be a Medium Trade Risk and to be
fair. |
|
Owner/Shareholders Comments |
All or most of the owners / shareholders have an active participation in
the running of the business. |
|
Age of Business |
Old Business |
|
MAX CREDIT |
USD 1,000,000.00 |
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.33 |
|
UK Pound |
1 |
Rs.73.92 |
|
Euro |
1 |
Rs.66.69 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)