Coen Welsh | Nov 14, 2017 | 0
Nambrew optimistic about H2
This is according to its Managing Director Wessie van der Westhuizen who shared his thoughts on Nambrew’s latest results on the eve of Namibia’s jubilee independence celebrations last week.
Said an optimistic van der Westhuzen, “We remain positive that the second half of the financial year will deliver further volume growth. Maintaining margins will remain a key focus point going forward and we will meet the challenges over the next coming months.”
Nambrew delivered a solid financial performance despite the increase in the competitive landscape following the commissioning of SABMiller’s Okahandja plant late last year. First half year results indicate a 6% increase on operating profit of N$292 million, turnover of N$1.3 billion and a 25% increase in earnings per share. Total volumes however were down 9%. Nambrew managed to grow beer volumes in Tanzania and Zambia while growth in Mozambique slowed down. Alcohol levies affected volumes in Botswana. He added that a depreciating Namibian dollar added to operating costs considering that Nambrew had to import the hops used in the production of its beer as well as the importation of aluminium products used for its canned range of beverages.
Nambrew continues to command a comfortable portion of the beer market, estimated to be 87% while its Ready-to-Drink and non-alcoholic range of beverages achieved double-digit growth. “Our 2015 performance has been satisfactory and we continue to focus on the extension of our strategy.”
Added van der Westhuizen, “We remain confident that the second half of the financial year will deliver further growth volume and that we will meet the challenges over the coming months.”
Encouragingly, DHN Drinks performed well. “The South African joint-venture DHN Drinks continued to grow volumes in a competitive beer market despite the difficult trading conditions,” he said.
Nambrew’s Financial Director Greame Mouton said, “The Namibian market continues to remain a significant contributor to total revenue and earnings. Local volume growth and our revised pricing strategy contributed to solid performance. We are pleased to announce an interim dividend, reflecting the confidence of the board in our future strategies.”