DESPITE a 13.7% decline in beer sales due to challenging economic conditions, Namibia Breweries Limited’s net revenue increased by 15% to N$2.1 billion.
This increase in revenue is attributed to the successful integration of the Distell portfolio, which performed well year-on-year as well as a price increase to cover inflation.
These figures emanate from NBL latest half-year financial results that were announced last week. The results provide the summarized consolidated financial results for the six months, which ended December 2023.
“As a proudly Namibian business that is vested in growing the country’s economy for the past 103 years, NBL’s first half-year financial results show it is geared towards evolving as a future-fit business during tough economic times,” read an NBL statement.
The statement added that socio-economic conditions remained challenging, and income disparity increased. Due to these factors, NBL’s dominant position in the mainstream beer market showed strain as consumers faced competing household demands with limited disposable income.
“NBL placed significant focus on cash management over the last six months. This came on the back of obtaining additional financing to acquire Distell, which placed specific focus on effectively gearing NBL’s financial position and leveraging the expanded portfolio to optimise cash generation in the short-term,” NBL stated.
As a result, net cash flow from operating activities increased to N$482 million from N$199 million the previous year.
NBL managing director Peter Simons said in view of the subdued consumer demand, the company will continue its business initiatives to boost sales, while managing costs in line with volumes.
“In the challenging economic and consumer landscape, we will further leverage the expanded portfolio for growth and optimising the combined supply chain for efficiency and compliance,” said Simons.
He added that having laid the groundwork through integration, NBL is now poised to take the next steps to support its long-term sustainability as a proudly Namibian company and be a vital part of Heineken Beverages to create a regional beverage champion for southern Africa.