PERFORMANCE HIGHLIGHTS
- Revenue N$3 billion, up by 15.3%
- Operating profit N$652 million, up by 6.3%
- Profit after tax N$931 million, up by 134%
- Earnings per share 450.8 cents, up by 134%
- Final dividend per ordinary share 50 cents, up by 8.7%
- Special dividend per ordinary share 121.05 cents.
Business performance
Namibia Breweries Limited (NBL) – a subsidiary of the Ohlthaver & List (O&L) Group – delivered a strong financial performance in 2019 with operating profit, earnings per ordinary share and profit attributable to shareholders increasing by 6.3%, 134% and 134%, respectively. Our performance this year is testimony of NBLs resilience and ability to adapt to changes in our operating environment. It is also the direct result of our employees taking ownership of challenges and creating opportunities to bring our purpose to life. The NBL Board declared a final dividend of 50c on 4 September 2019, which represents an increase of 8.7% from the previous period and approved an additional special dividend of 121.05 cents per share.
NBL Managing Director (MD), Marco Wenk: “Whilst NBL has seen significant growth over the past years, Namibia is without a doubt facing challenging economic conditions. These will require that we take all measures necessary to ensure we place maximum focus on efficiencies and an ongoing sustainable business. We also have to continuously challenge ourselves to innovate and find opportunities for growth, within as well as outside our borders”.
Brands
Tafel Lager contributed to Namibia’s 29th Independence celebrations by calling on Namibians to record and contribute their beats, tunes and moves. In the biggest social media co-creation in Namibia, the Beat of Namibia campaign received over 6 000 entries. We in turn provided consumers with a free video featuring a selection of these clips, showcasing our Namibian spirit and diversity.
Tafel Radler was successfully launched in October 2018, as the first locally produced offering in the flavoured, low-alcohol beer segment in Namibia. Volume demand far exceeded expectations and led to stock shortages, which were quickly addressed. A 660ml returnable bottle was launched during April 2019 to increase the brand’s footprint and broaden our appeal to consumers seeking the larger returnable pack, which is at a more accessible price point.
The McKane range of premium mixers launched new flavors: Cranberry, Grapefruit and Ginger Ale. Consumers are increasingly experimenting with mixers to enhance and complement different spirit drinks as well as create innovative non-alcoholic cocktails.
Windhoek Light donated equipment to the Namibia Wildlife Resort and the Ministry of Environment and Tourism to keep the Fish River Canyon hiking activities going despite the drought. Kits were donated to set up water points and include water purification assistance. Windhoek Light also sponsors the Fish River Ultra Challenge to raise funds for the development of tourism and sustainability in the south of Namibia.
King Lager partnered with a vocational training centre as a way to give back to consumers. An upskilling campaign called “Man with a Plan” was launched to provide participants with tips and advice on various trades that will enable and inspire them to seek out means to make a living and take care of their families. We selected relevant topics with the assistance of the Namibian Training Authority to be featured monthly on radio stations. Each topic was also covered in a workshop presented by experts in specific regions. Topics included carpentry and joinery, agronomy, animal farming, brick laying and plastering, electronics and renewable energy.
Financial performance
NBL Finance Director, Waldemar von Lieres: “For the first time in three years, volumes in Namibia started picking up again, delivering 3.9% growth on 2018 against a recessionary backdrop. Volume growth to South Africa reached a stellar 44.8%. Export volumes decreased by 31.2%. Overall volumes increased by 13.8% with revenue increasing by 15.3%. Profit attributable to shareholders of N$932 million was delivered – an increase of 134% on prior year. Heineken South Africa made a significant contribution to profit by delivering N$106 million (2018: N$96 million) in royalties. NBL’s share in associate profit amounted to N$451 million in 2019 (N$335 million recognition of deferred tax asset and N$116 million share of associate profit).
Outlook
Wenk concluded: “Innovation within all spheres of our business is a strong focus for NBL and will support from both a volume growth but also bottom line performance perspective. Our focus to maintain and grow market share both within as well as outside of our boarders will remain high on our agenda while providing an environment for our people to grow and succeed will remain a key deliverable to ensure NBL’s future success as well as to deliver our Groups Vision towards 2025.”
About Namibia Breweries
Namibia Breweries Limited employs 801 permanent employees. The company is listed on the Namibian Stock Exchange (NSX). The Ohlthaver & List (O&L) Group is the largest investor in NBL. The company’s brand portfolio includes leading brands such as Tafel Lager, Windhoek Lager, Windhoek Draught, Windhoek Light, Tafel Radler, Tafel Lite, King Lager, Camelthorn, McKane and AquaSplash, amongst others.
