Sechaba Brewery Holdings Limited on SABMILLER.COM (29 November 2004)

SECHABA BREWERY HOLDINGS LIMITED

INCORPORATED IN THE REPUBLIC OF BOTSWANA(Registered number co 5271)

Highlights of unaudited results for the 6 months ended 30 September 2004

• Turnover grew by 10.2% over prior year
• Operating profit up by 14.2% from P12.5m to P143.4m
• Comparable earnings per share increased by 38.4% to 46.8 thebe
• Total dividend for the 6 months amounts to 48 thebe per share

Financial Performance.
Despite tight trading conditions, Sechaba Brewery Holdings Limited delivered satisfactory financial results for the 6 months ended 30 September 2004. Turnover for the group increased by 10.2% over the same period last year and operating profit grew by 14.2%.
To minimize the possibility of stock outs in the trade, which has been a problem in recent times, management took a conscious decision to increase stock levels. This led to an increase in inventory, but also improved availability, and contributed to the positive sales performance. We anticipate that inventory levels will normalize in the next quarter.
Comparable earnings per share showed a very healthy 38,4% improvement.

Sales Volumes.
Kgalagadi Breweries Ltd sales volumes grew by 3% compared to the same period last year. This was as a result of much work in the trade coming to fruition. The reduction in stock outs in the trade was a major contributor. The injection of affordability packs (300ml & 1litre glass) brought product within the financial reach of marginal consumers.

However Botswana Breweries Limited Chibuku volumes were below the same period last year. This was due to a large degree to a bumper season of indigenous fruit used to produce cheap homebrews and the effects of the entry of a competitor into the traditional beer market. We are hopeful that renewed focus will enable us to reverse this sales trend.

Dividends.
The Directors are pleased to announce the declaration of a second interim dividend of 25 thebe per share for the quarter, comparing favourably with the 22 thebe per share for the same quarter last year.

Accounting practise.
In order to comply with both the Botswana Companies Act and the International Financial Reporting Standards requirement, financial information has now been presented as required by Section 114 of the current Botswana Companies Act. This required the operations of the entities in which Sechaba Brewery Holdings (Sechaba) owns more than 50% of issued share capital be consolidated along with the operations of Sechaba.

In addition, financial information has been prepared inline with International Financial Reporting Statements, which in the case of Sechaba, require that Sechaba’s investments in Kgalagadi Breweries (Pty) Limited and Botswana Breweries (Pty) Limited be accounted for on an equity basis.

Prospects.
Trading conditions will remain tough for the remainder of the fiscal year, and in October 2004 the group took the innovative steps of introducing new brands and packs into the market, These include: a 450ml can pack for the three clear beer mainstream brands, the introduction of Miller Genuine Draft and the launching of Traditional beer variants. It is still anticipated that meaningful real growth on last year will be achieved over the full year.