E-Malt.com News article: Namibia: Namibia Breweries reports a successful financial year ended June, 30

Namibia Breweries Limited (NBL) reported its net profit grew to N$141 mln in the financial year ended June, 30, 2008, from N$121 mln registered in the previous year, Namibia’s New Era posted on September, 29.

According to NBL’s Managing Director Desmond van Jaarsveld, the growth of beer volumes sold in Namibia exceeded the market, while export markets recorded exceptional growth in focus markets.

Domestic beer volumes grew by 8 percent year-on-year. “Our domestic market continues to be a large contributor to our revenue, while exports take up more than half of our total production output,” said the Financial Director of NBL Bruce Kidner.

However, NBL’s strong and home-grown brand, Tafel Lager, took a knock in volumes as beer drinkers switched to Windhoek Lager.

Annual company turnover came in at N$1.331 mln, 27 percent more than the N$1.045 mln reported in the previous financial year. Operating profit increased by 23.5 percent over last year to N$182 mln.

Earnings per share rose 17 percent to 68.5 cents per share. Full year dividend per share is at 36 cents per share – up from 30 cents in the previous year.

The operating margin has been maintained in spite of the input cost pressures.

“Our results represent yet another year of exceptional performance,” said Van Jaarsveld.

This was achieved amid rising inflation and interest rates that dominated the market during the last quarter, with an adverse impact on consumers’ disposable income and spending.

South Africa remains the brewery’s largest export market, and in May this year, the company expanded its South African joint venture with strategic partners Diageo plc and Heineken BV from a cost-sharing to a profit-sharing agreement.

“We are generally optimistic with regard to the trading outlook but clearly there are some challenges ahead. Focus will remain on the home market, brand support and extending our route to our consumers throughout the Southern African region,” said Kidner, adding that with local and imported inflation now at high levels, cost control and efficiencies will be a key focus for the period ahead.


01 October, 2008