Namibia Breweries’ operating profit down to N$340 million
For the 6 months ended 31 December 2019, Namibia Breweries Limited’s operating profit was down by 8.4% to N$340 million as a result of not implementing an annual price increase on returnable bottles, which constitutes the main portion of Namibian beer sales.
The company, announcing its six months’ financials, said that the decision for not implementing an annual price increase on returnable bottles was based on the struggling economy’s severe impact on consumers.
However, the company saw an increase on overall revenue by 3.9% on the back of increased beer volumes, while sales volumes in the other segments lost some ground. For the period under review, Namibia, South Africa and export volumes increased by 1.9%; 6.3% and 28.3%, respectively.
Additionally, profit attributable to shareholders of N$318 million was delivered for the six months ended 31 December 2019.
“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,” Namibia Breweries Managing Director Marco Wenk said.
Wenk, noting that sustained economic pressure for Namibia and South Africa is anticipated in the medium term, said a key focus for maintaining the company’s 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,” Wenk said.
Namibia Breweries Limited currently employs 824 permanent employees, with its parent company, Ohlthaver & List (O&L) Group being its largest investor. The company’s brand portfolio includes leading brands such as Tafel Lager, Windhoek Lager, Windhoek Draught, Windhoek Light, Windhoek Non-Alcoholic, Tafel Radler, Tafel Lite, King Lager, Camelthorn, McKane and AquaSplash, amongst others.