Namibians continue to love their beer
Namibian.com.na - Sep 23rd, 10:47
Namibians have continued to love the beer bottle with Namibia Breweries Limited (NBL) announcing that overall beer sales volumes on the local market grew at double digits, delivering a 12% growth in the year ended 30 June compared to the previous year.
The company said in financial results that the Tafel brand continued to outperform the portfolio and was the main driver of the overall beer growth.
“Windhoek Draught continues to perform well and has also contributed to the overall growth in volumes. Our ready-to-drink range (RTD) sales have seen a slight decline, whereas Vigo, the new malt soft drink range launched in 2012, has had a solid start and continues to outperform expectation,” the company said.
SABMiller, NBL’s biggest competitor in Namibia is expected to open a brewery at Okahandja in mid 2015 with an installed capacity of 260 000 hectolitres per annum, which can be expanded to 400 000 hectolitres. SABMiller is investing N$420 million in the brewery.
The results revealed that after tax, profit dropped to N$72 million from N$221 million last year. Revenue increased to N$2.38 billion from N$2.16 billion last year. Revenue increased mainly due to performance of the home market and increased volumes produced and supplied to DHN, its South African Joint Venture. Operating profit for the year grew by 17% compared to the previous year.
“The loss from continuing operations recorded from our South African Joint venture DHN Drinks was N$109 million. This was N$17 million higher than the previous year. In addition to the loss from ongoing operations from the joint venture, an additional loss of N$188 million was recorded as a result of the deferred tax asset write off in the joint venture,” NBL said.
NBL said the operating loss attributable to DHN Drinks increased compared to the prior year. However, it said taking into account royalties and production margins that NBL receives for contract packing for South Africa, NBL continued to make positive returns from the ongoing operations of their South African business.
“Total volumes produced by NBL and sold to DHN Drinks (Pty) Ltd were up, compared to the prior year. Our South African joint venture continued to grow sales at single digit levels, despite the highly competitive environment,” the company said. NBL said export markets continued to deliver mixed performance, with increased competition particularly in the Southern Africa Development Community countries.
“We expect our recent performance to go on in Namibia with continued solid growth in beer despite expected increase in the local competition environment. We are also confident that, amidst the increasingly competitive environment in South Africa, our joint venture, DHN Drinks, will remain important for a growth in beer consumption,” NBL said.
The company has declared a final dividend of 31 cents per ordinary share.
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