Namibia Breweries Limited (NBL) has maintained its strong market position despite persistent economic challenges and the effect on consumers’ disposable income, according to their recently released financial results for the six-month period ended December 31, 2018.
Over the half-year, local volumes are in line with the previous year and export volumes decreased by 35.1% while volumes produced for South Africa increased by 51.2%.
Breweries CFO Graeme Mouton said that despite a tough business environment, NBL managed to increase its overall volumes by 11.8% with revenues increasing 13.8%.
âOperating profit was 7.6% higher than the comparative period due to cost savings and improved efficiency, including negotiating lower freight costs and implementing an electronic management system.
Mouton said profit attributable to shareholders of N $ 367 million was achieved for the half-year, an increase of 52.8% from the previous year.
“This increase is mainly attributable to the exceptional performance of Heineken South Africa for this period,” he added.
The brewery board declared a final dividend of 50 cents on February 25, 2019, which is an 8.7% increase over the previous period.
âOur half-year performance testifies to NBL’s resilience and its ability to adapt to changes in 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 that our employees take ownership of challenges and create opportunities to bring our purpose to life. Without it, NBL would have delivered a very different result, Mouton said.
Looking ahead, Mouton said the group expects to maintain strong performance locally despite the difficult operating environment.
âWe will continue to invest in Namibia and support local investments through local procurement,â he added.
The breweries currently employ 799 people and the company is listed on the Namibia 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, among others.