NAMIBIA Breweries Limited have closed their 2019 financial year with 17 export destinations, 18 brands, and a profit of N$931 million.
Almost 50% (N$450 million) of the group’s profit came from NBL’s investment in Heineken South Africa which returned to profit after incurring a series of losses.
This is according to recently released financial statements of Namibia’s premier breweries, whose revenue hit N$3 billion this year, up from N$2,7 billion recorded in 2018.
Of the N$3 billion revenue, the Namibian market remains the biggest contributor at close to N$2 billion, followed by South Africa at N$852 million, the Tanzanian market at N$77 million, and the rest of the world garnering less than N$60 million.
In all the 17 countries, beer was the largest revenue pool for the company at N$2,7 billion.
The Fruitree maker further said the non-alcoholic and low-alcoholic beverage segments grew over the last year, with revenue increasing by 27% from N$183 million to N$251 million.
During the announcement last week, finance director Waldemar von Lieres said for the first time in three years, volumes in Namibia have started peaking and earning a 3,9% growth, while overall volumes increased by 13,8% worldwide.
Other key indicators show that operating expenses were up by 17%, more than the group’s revenue increase of 15%, while finance costs dropped marginally from N$43 million to N$42 million. The group has a healthy balance-sheet of N$3,1 billion, with a strong retained earnings figure of N$1,9 billion, being 61% of total assets.
The group has a deferred tax liability of N$183 million, which could be reduced by a N$68 million unused tax loss off the balance-sheet.
The financial statements show that Heineken SA brought in revenue of N$9,3 billion, which is an uptick from N$7 billion recorded last year. The increase in revenue led to them making a profit of N$657 million from a loss of N$179 million in 2018.
Royalties earned from Heineken SA stood at N$105 million, a 9% average increase from N$96 million recorded in 2018, while
inter-company sales with the associate stood at N$1,3 billion.
The NBL group’s relations with Heineken SA started in 2003, and this year, the investment in the associate stands at N$885 million from N$404 last year.
About N$334 million of the N$450 million Heineken SA profit included in Namibia Breweries’ statements relate to a deferred tax asset raised on a N$1,3 billion tax loss which was recognised over the years, where auditors Deloitte and Touche agree with management that there is a high probability of recovery, and is thereby recognisable.
The group has a brand portfolio of 18 products, including Tafel Lager, Mckane, AquaSplash, Fruitree and Camelthorn. “As a result of limited pack size options, Vigo and Code were not able to achieve sustainable volumes, and thus these soft drinks’ portfolio was trimmed and discontinued,” read a note in the annual report.
Namibia Breweries Limited shareholders, including the Government Institutions Pension Fund, will receive a 50 cents per share final dividend, and a special dividend of 121 cents per share, with the last day to trade set for 27 September 2019. This will be the highest dividend ever paid by Namibia Breweries in their listing history.
Share trade volumes for 2019 decreased with five million shares changing hands (worth N$252 million), from 7,7 million shares with a value of N$300 million. Namibia Breweries’ shares are among the most traded shares on the Namibian Stock Exchange, and the 2019 financial year recorded a dividend yield of 2,1 flat when compared to 2018.
An abstract of the financial statements is available on the Namibian Stock Exchange news platform.
Email: lazarus@namibian.com.na
Twitter: @Lasarus_A
