PERFORMANCE HIGHLIGHTS
- Revenue N$1.7 billion, up by 3.9%
- Operating profit N$340 million, down by 8.4%
- Profit after tax N$318 million, down by %13.3%
- Earnings per share 153.9 cents, down by 13.3%
- Final dividend per ordinary share 53 cents, up by 6%
Business performance
Namibia Breweries Limited (NBL) – a subsidiary of the Ohlthaver & List (O&L) Group – achieved positive overall volume growth of 3%, despite challenging economic times, driven by being competitively priced on a wide portfolio of products, innovative thinking and new product launches. For the 6 months ended 31 December 2019, Namibia, South Africa and export volumes increased by 1.9%; 6.3% and 28.3%, respectively. Operating profit was down by 8.4%, as a result of not implementing an annual price increase on returnable bottles, which constitutes the dominant portion of Namibian beer sales. The decision recognised the struggling economy’s severe impact on consumers. Overall revenue however increased by 3.9% on the back of increased beer volumes. Sales volumes in the other segments lost some ground. The NBL Board declared a final dividend of 53c on 3 March 2020, which represents an increase of 6% from the previous period.
NBL Managing Director (MD), Marco Wenk: “While NBL has seen significant growth over the past years, Namibia is without a doubt facing challenging economic conditions. NBLs success can be ascribed to its drive to be ahead of the curve in meeting the ever-changing needs of its consumers. We will continuously challenge ourselves to innovate and find opportunities for growth, within as well as outside our borders”.
Brands
Windhoek Non-Alcoholic beer launched in the middle of September 2019 as a new choice in the mainstream segment, the backbone of NBL’s beer portfolio. Early volumes are in line with expectations.
The success of Tafel Radler, a fusion drink in the flavoured low alcohol segment, was supported by the launch of a new limited edition grapefruit variant.
The new classic, McKane Dry Lemon is the latest addition to NBL’s range of superior value and quality mixers, produced in Namibia.
King Lager, Namibia’s home-grown barley beer, is showing good growth, supporting a growing
value segment.
Awards
NBL won Large Enterprise Company of the Year: Joint First Place and the Large Enterprise Product of the Year: First Place at the Namibian Standards Institute’s 2019 National Quality Awards.
Windhoek Lager, Windhoek Draught, Windhoek Light and Tafel Lager received gold medals at the 2019 (DLG) Quality Evaluation. Windhoek Non-Alcoholic and Tafel Lite received silver medals.
Financial performance
NBL Finance Director, Waldemar von Lieres: “Despite a challenging trading environment, NBL managed to increase overall volumes by 3%. Volume growth to South Africa and export markets increased by 6.3 and 28.3% respectively. Profit attributable to shareholders of N$318 million was delivered for the six months ended 31 December 2019.”
Outlook
Wenk concluded: “Sustained economic pressure for Namibia and South Africa is anticipated in the medium term. A key focus for maintaining our growth trajectory is to ensure cost as well as operational efficiencies while optimising product routes to market. Innovation, and the entrenchment of O&L’s new people-focused Breakthrough Strategy will remain vital to support the needs and demands of NBL’s customers and consumers.”
