E-Malt.com News article: 1399

Namibian Stock Exchange-listed brewer Namibian Breweries (NBS) warned on August 7 that its interim results for the six months ending 31 July 2003 are anticipated to be significantly lower than that of the corresponding period of the previous financial year, Business Day reported.

The company said that as reported in the annual report in January, the sudden exceptionally high import levies imposed by the Angolan government has impacted on Nambrew's export growth and has led to a considerable year-on-year decline in export volumes to this market. Contrary to original expectations, resolving the matter is taking longer than anticipated and it would probably remain unresolved for the largest part of the financial year.

In addition, Nambrew said the new packaging for the Tafel and Windhoek brands has received a high level acceptance in the market place, however, the costs could not be fully recovered in a single price increase. "Sales of both brands are continuing to grow and we anticipate that costs of the new packaging will ultimately be recovered through increased sales."

At the same time, Nambrew said that Ohlthaver and List Finance and Trading Corporation, Heineken International BV and Diageo Plc have announced that all conditions precedent have been dealt with and all necessary regulatory approvals granted, enabling Heineken and Diageo to acquire Beck's Africa Investment GmBH shares in NBL Investment Holdings Limited and Namibia Breweries.

Heineken and Daigeo hold the shares via a company styled Diageo Heineken Namibia BV, which will have an effective 28.9% shareholding in Nambrew.


08 August, 2003