NBL focusing on growth

NAMIBIA Breweries Limited (NBL) yesterday announced positive results with the group’s operating profit in the company’s interim financial results of the six months ended December 31 2006, having showed a 21,7 per cent increase mainly due to volume growth and price increases in both the local and South African markets.

The company generated revenue of N$565,6 million compared to N$511,7 million made during the same period of six months ending December 2005, while operating profit grew to N$69,6 million from N$57,2 million. Profit before taxation was at N$72,7 million from N$50,8 million.Beer’s revenue during the period under review was at N$499,2 million from N$447,7 million; soft drinks at N$62, 6 million from N$60,6 million while other NBL products generated N$3,8 million up from N$3,3 million recorded in the previous period.NBL said although its beer brands – which include Tafel and Windhoek Lager – were showing strong growth, its soft drink business has remained “under pressure”.Exports also did well posting positive results for the company with the exception of Angola, where the board says measures are in place to reclaim beer export volumes in that country.”Steps are being taken to recover volumes in Angola and the group’s business in this market should be strengthened when the bilateral agreements between Namibia and Angola are implemented,” said NBL Chairman Sven Thieme.According to NBL, increased investment in marketing of NBL’s beverages resulted in the operating margin for the period under review at 12,3 per cent compared to 11,2 per cent during the corresponding period of last year.Total equity and liabilities were at N$778,1 million from N$717,6 million recorded for the half-year ended December 2005.Profit attributable to shareholders went up by six per cent to N$50,8 million from N$48 million of the corresponding period in 2005.Net cash flow from operating activities was at N$47,4 million compared to N$29,7 million registered previously.A statement from the board of directors read, “During the period under review, the group delivered a strong performance which was driven primarily by volume and revenue growth.The group’s future will be dependent on continuing this growth trend and in ensuring that the ruthless focus on driving efficiencies remains.”The board is confident that the group, with the continued support of all its shareholders is on a firm course to sustainable and profitable growth.”Profit before taxation was at N$72,7 million from N$50,8 million.Beer’s revenue during the period under review was at N$499,2 million from N$447,7 million; soft drinks at N$62, 6 million from N$60,6 million while other NBL products generated N$3,8 million up from N$3,3 million recorded in the previous period. NBL said although its beer brands – which include Tafel and Windhoek Lager – were showing strong growth, its soft drink business has remained “under pressure”.Exports also did well posting positive results for the company with the exception of Angola, where the board says measures are in place to reclaim beer export volumes in that country.”Steps are being taken to recover volumes in Angola and the group’s business in this market should be strengthened when the bilateral agreements between Namibia and Angola are implemented,” said NBL Chairman Sven Thieme.According to NBL, increased investment in marketing of NBL’s beverages resulted in the operating margin for the period under review at 12,3 per cent compared to 11,2 per cent during the corresponding period of last year.Total equity and liabilities were at N$778,1 million from N$717,6 million recorded for the half-year ended December 2005.Profit attributable to shareholders went up by six per cent to N$50,8 million from N$48 million of the corresponding period in 2005.Net cash flow from operating activities was at N$47,4 million compared to N$29,7 million registered previously.A statement from the board of directors read, “During the period under review, the group delivered a strong performance which was driven primarily by volume and revenue growth.The group’s future will be dependent on continuing this growth trend and in ensuring that the ruthless focus on driving efficiencies remains.”The board is confident that the group, with the continued support of all its shareholders is on a firm course to sustainable and profitable growth.”