Beer sales dip by 13.7%
Namibia Breweries Limited (NBL) has released its condensed consolidated financial results for the first six months ending December 2023, showcasing its resilience amid challenging economic conditions.
The first half of 2023 proved to be a testing period, marked by heightened income disparity and constrained consumer spending.
Despite grappling with a 13.7% dip in beer sales due to economic headwinds, NBL reported a commendable 15% surge in net revenue, totaling N$2.1 billion. This uptick was attributed to the successful integration of the Distell portfolio into NBL’s operations, along with a strategic price adjustment to counter inflationary pressures.
Over the past six months, NBL prioritized prudent cash management, especially following additional financing secured for the acquisition of Distell. This concerted effort aimed at fortifying NBL’s financial position and harnessing the synergies from the expanded portfolio to bolster short-term cash flow. Consequently, net cash flow from operating activities more than doubled, reaching N$482 million compared to N$199 million in the preceding year.
Peter Simons, Managing Director of NBL, emphasized the company’s commitment to navigating the subdued consumer demand by implementing robust business strategies aimed at stimulating sales while effectively controlling costs.
“In light of the challenging economic environment, we remain steadfast in leveraging our diversified portfolio for growth and optimizing our supply chain for enhanced efficiency and compliance,” remarked Simons.
Looking ahead, Simons outlined NBL’s vision to further consolidate its position as a cornerstone of Namibia’s economic landscape. Having laid a solid foundation through the successful integration of Distell, NBL is poised to embark on the next phase of its journey, ensuring long-term sustainability as a proud Namibian entity. Moreover, NBL aims to play a pivotal role within the Heineken Beverages framework, contributing to the creation of a regional beverage powerhouse for Southern Africa.
