NAMIBIA Breweries Limited is exploring long-term opportunities to establish a footprint in other African markets.
Namibia Breweries Limited (NBL) managing director Wessie van der Westhuizen said this during the announcement of the company’s financial results last Friday.
NBL is already in Botswana, Lesotho, Swaziland, South Africa and Zambia.
Van der Westhuizen said this is part of the company’s plan to diversify and grow its volumes, and by so doing, they plan to continue developing brands and creating experiences.
“Our focus in the short-term will be to further grow volumes in South Africa through Heineken South Africa, while exploring longer-term opportunities to establish a footprint in other African markets,” Van der Westhuizen said.
He explained that NBL will continue to develop innovative campaigns to further promote its brands, in addition to exploring additional opportunities to further manage costs down.
“This requires a breakthrough approach, and emphasises the importance to create a risk-free environment where employees are free to further contribute to the success of the business,” he noted.
NBL’s results for the year ended on 30 June 2018 revealed that the company’s revenue stood at N$2,6 billion, a 0,8% decline, while profit after tax was up by 25%, at N$398 million.
The company’s operating profit also increased by 0,34% to N$613 million during the period under review. Meanwhile, its earnings per share was 192,6 cents, up by 9,5%, while the special dividend per ordinary share was 193,6 cents.
Van der Westhuizen added: “NBL recalibrated its business strategies and key focus areas in line with a challenging economic climate that enabled the business to deliver these remarkable results. Our business culture of producing breakthrough everywhere most certainly assisted us to stay true to our group purpose of ‘Creating a Future, Enhancing Life’.”
Although the total beer market declined in 2018, NBL still has a majority market share in Namibia. Tafel Lager, the biggest beer brand in Namibia, exceeded volume targets, following the introduction of Tafel Lite and new pack sizes in South Africa.
During the year, the company relaunched and positioned Camelthorn in Namibia and South Africa as its authentic, small-batch craft beer brand, and incorporated Urbock into this range. The seasonal, dark malted beer has found a place alongside the Weiss and Helles Camelthorn beers.
NBL’s finance director, Graeme Mouton, said the investment into Heineken South Africa continued to contribute to NBL’s performance in 2018.
He added that while Namibian beer volumes slightly decreased by 2%, NBL’s overall volume declined by 5,5%, but NBL maintained its operating margin in line with the preceding year, despite the challenging economic environment.
“Profit attributable to shareholders of N$398 million was delivered, recording an increase of 25%, compared to the previous year. This increase is mainly attributable to the significant decrease in equity accounted losses from NBL’s associate, Heineken South Africa, and a decrease in operating expenses,” he observed.
– charmaine@namibian.com.na
