Namibia Breweries revenue falls to N$1.39 billion
Namibia Breweries Limited on 12 March announced that its revenue went down 18.5% to N$1.39 billion and its overall volumes declined by 23.1% predominantly due to COVID- 19 related restrictions as well as alcohol bans in South Africa (SA), which adversely impacted the SA trading environment.
Namibian beer volumes increased by 1.5% on the back of strong consumer support and loyalty, with specifically Windhoek Draught showing exceptional growth. Beer volumes supplied to South Africa were down by 66.1% due to lockdown conditions and alcohol bans. Export volumes contracted by 15% with Tanzania and Zambia still performing well, also given a favourable exchange rate during the reporting period.
Meanwhile, the company’s earning per share declined by 46.3%, which is attributed to the company achieving an increase in Namibian beer volumes.
Heineken South Africa experienced severe COVID-19 related trade restrictions which impacted volumes as well as royalties and resulted in a revenue decrease for the Brewery of 18.5% to one billion three hundred and eighty-six million Namibian dollars. Namibia Breweries share of associate loss of N$90 million is a significant reversal from last year’s positive contribution of N$77 million.
The Namibia Breweries Board declared an interim dividend of 56c on 09 March 2021, which represents an increase of 5.7% from the previous period.
“Although COVID-19 did impact our export markets, favourable exchange rates allowed us to absorb this impact,” Namibia Breweries managing director Marco Wenk, said.
Wenk added they expect steady performance for their core portfolio in the second half of the financial year, anchored by the Windhoek and Tafel branded beers.
“Namibia Breweries will continue to focus on further innovation around brands, trade execution and operational efficiencies while we continue to support and adhere to all regulations and directives to reduce the spread of the COVID-19 virus. Once trade restrictions have been reasonably lifted, we expect our South African performance to stabilize and return to normality,” Wenk said.