Beer exports to South Africa boost NBL profits

Namibia Breweries Limited recorded a profit after tax of N.dollars 931 million as a result of an increase in beer export volumes to South Africa accounting for 32.8 per cent of total exports.

The company revealed this during the announcement of its financial results for the financial year ended 30 June 2019 here on Friday.

NBL's Managing Director, Marco Wenk during a presentation on the company's Integrated Annual Report for 2019, the company's revenue was N.dollars 3,1 billion at the end of June 2019, an increase of 15,3 per cent from N.dollars 2,7 million in June 2018.

NBL's operating profit stood at N.dollars 652 million, an increase of 6,3 per cent from N.dollars 613 million in June 2018.

Overall growth volumes were attributed to a partnership undertaken with Heineken South Africa.

The company which is a subsidiary of the O and L Group of Companies exported 2,6 per cent of its beer volumes were exported to other parts of the world; while ciders and soft drinks counted for 3,2 per cent and 5,5 per cent of its total export volumes.

NBL is also listed on the Namibia Stock Exchange.

Meanwhile, NBL recorded 57,8 per cent of its total beer volume contributions in Namibia.

Volume growth to South Africa accounted stood at 44,8 per cent.

Headline earnings per share increased to 450.70 cents per share in June 2019, from 194.60 cents per share at the end of June 2018.

Wenk said the company was looking at the non-alcoholic segment in the world which is becoming increasingly popular in the world.

He noted that despite the company's strong financial performance, there was a decline in consumption due to lower buying power by consumers and high poverty levels, as well as the challenging economic conditions in the world.

'Our focus to maintain and grow market share both within as well as outside of our borders will remain high on our agenda while providing an environment for our people to grow and succeed will remain a key deliverable to ensure NBL's future success as well as to deliver our group's vision towards 2025,' he stated.

Source: Namibia Press Agency