Breweries deliver stellar performance amid turbulent economic environment – revenue up by 13.8%
Namibia Breweries Limited (NBL) maintained its strong market position despite persistent economic challenges and the effect on consumer’s disposable income, according to their recently released financial results for the six months ended 31 December 2018.
For the half year, local volumes were in line with prior year and export volumes decreased by 35.1% whereas volumes produced for South Africa increased by 51.2%.
Breweries Finance Director, Graeme Mouton said despite a challenging trading environment, NBL managed to increase its overall volumes by 11.8% with revenue increasing by 13.8%.
“Operating profit was 7.6% higher than the comparative period due to cost savings and improved efficiencies included the negotiation of reduced transport fees and the implementation of an electronic management system.
Mouton said profit attributable to shareholders of N$367 million was delivered for the six months, an increase of 52.8% on the prior year.
“This increase in mainly attributable to exceptional performance of Heineken South Africa for this period,”he added.
The breweries board declared a final dividend of 50c on 25 February 2019, which represents an increase of 8.7% from the previous period.
“Our half-year performance is testimony to NBL’s resilience and ability to adapt to changes within our operating environment and to our long-term business strategy as defined by the O&L 2019 Breakthrough Plan. It is also the direct result of our employees taking ownership of challenges and creating opportunities to bring our purpose to life. Without this, NBL would have delivered a very different result, said Mouton.
Looking forward, Mouton said the group expects to maintain the solid performance in locally despite the challenging operating environment.
“We will continue to invest in Namibia and support local investment through local procurement, he added.
The breweries currently employs 799 employees and the company is listed on the Namibian Stock Exchange.
The Ohlthaver & List (O&L) Group is the largest investor in NBL. The company’s brand portfolio includes leading brands such as Windhoek Lager, Windhoek Draught, Windhoek Light, Tafel Lager, Tafel Lite, Tafel Radler, King Lager and McKane, amongst others.