WINDHOEK – Namibia’s wet appetite for Tafel Lager beer has bolstered the financial results of Namibia Breweries Limited for the period ending December 2014. NBL’s non-alcoholic beverages also recorded double-digit growth in the same period where the Namibian brewery recorded a 6 percent increase in operating profit to N$292 million.
However, turnover went down 1 percent to N$1.3 billion and so did the earning per share, which decreased by 25 percent and NBL’s managing director Hendrik van der Westhuizen attributed this to an “increase in competitive landscape, volume migration to South Africa and increase of losses in share of associate”.
Further, NBL’s financial director Graeme Mouton says the beer industry was challenged with significant increase in utility cost, including new rates for effluent charges that reduced savings generated through procurement and efficiencies. Diageo, Heineken and Namibia Breweries (DHN), NBL’s South African joint venture company, reported significant increased losses compared to the previous year mainly due to timing differences relating to marketing and operational spending.
Nevertheless, NBL continue to dominate the local beer market, occupying 87 percent of the market share. NBL is also doing well in South Africa where it is brewing beer for the rest of African markets, including South Africa, through DHN.
“We are pleased to announce our interim dividend of 37 cents per share, an increase of 8.8 percent, reflecting the confidence of the board in our future strategies,” said Mouton.
NBL says the promotion of Windhoek Draught beer brand in southern Africa “saw a renovation of its primary, secondary and tertiary packaging to maintain its relevance to its target consumers”, but “Tafel Lager continues to lead NBL portfolio as it cements its ownership of National Pride and Windhoek Lager continues to solidify its position as NBL’s premium offering”.
Yet despite NBL’s success in conquering the rest of Africa with its beers, the brewery says the Namibian market continues to remain a significant contributor to total revenue and earnings. “Local volume growth and our revised pricing strategy contributed to a solid performance,” said Mouton.
Van der Westhuizen says NBL remains confident that the second half of the financial year will deliver further volume growth and meet the challenges over the coming months. “We will continue to build sustainable consumer confidence and prompt renewed brand investment,” he said.