NBL continues to brew golden results

NAMIBIA Breweries Limited (NBL) financial results for the year ended June 30 2009 show that the company’s thirst for profit has not been quenched by a long shot: a continued hard stance on cost-cutting saw them maturing an operating profit of N$267 million, 47 per cent higher than that of last year.

Headline earnings per share jumped by 20 per cent to 81,5 cents and the company declared a full-year dividend of 44 cents per ordinary share, which is 22 per cent more than in 2008.Little wonder NBL was honoured as the third Best Performing Africa Index Top 100 Companies at the 2009 Africa Investor Index Series Awards announced recently at the New York Stock Exchange (NYSE).’Market challenges have made us more adaptive, innovative and smarter in our operations,’ NBL Managing Director Desmond Van Jaarsveld said, referring not only to past hiccups like border difficulties hampering exports to Angola, but also signalling that the company is ready to tackle stiffer competition from SABMiller, which recently received a brewing licence in Namibia.Van Jaarsveld said the financial year was characterised by a global economic downturn that had impacted on most market conditions. Their results ‘are testimony that we are weathering the storm to date, understanding that we are not through it yet’.Announcing their financial results last Thursday, he said NBL brewed over two million hectolitres of beer during the period, ‘exceeding all our previous production volumes’.The Breweries’ turnover improved by 18 per cent, topping N$1,6 billion for the year. Beer sales generated the biggest revenue, climbing nearly 17 per cent to N$1,4 billion, while soft drinks increased by 11 eleven per cent to about N$140,4 million.Local sales were up nearly 30 per cent, earning NBL about N$682,2 million, while exports improved by about 10 per cent to N$884,3 million. Windhoek Lager outperformed the market in Botswana growing year-on-year by 19 per cent despite the introduction of a 30 per cent alcohol levy last November.Van Jaarsveld said NBL ‘witnessed positive developments emanating from out joint venture partnership with Diageo and Heineken through the creation of DHN Drinks’, and maintained good growth in a declining South African beer market.’Future growth prospects are looking promising,’ he said, adding that the Sedibeng Brewery in South Africa, a joint venture of Heineken and Diageo, will soon start operating.Commenting on SABMillers’ intention to brew their Castle Lager and Black Label brands locally, Van Jaarsveld said NBL ‘remains confident’.’Our strategic direction, which includes continuing to invest significantly behind our people, our brands and our innovation agenda, in the main, remains sounds,’ he said.NBL is aware that tough times face them though.’We do estimate, however, that our profit growth rates in the coming year will be at a much lower rate, as we continue to support the DHN joint venture in its early start-up years and weight up our competitive edge,’ Van Jaarsveld said.’We are aware that there are cheaper ways to brew beer using other ingredients, but we have made our choice to brew pure beer and will not compromise,’ he said.jo-mare@namibian.com.na