NBL results positive

NAMIBIAN Breweries Limited (NBL) last week announced its annual results which showed that the Group’s operating profit for the year ended June 30 2006 had increased by a 194 per cent.

The company said regardless of the N$22,2 million spent for restructuring costs and impairment of assets during the 2005 results, the operating profit was still up by 79 per cent. The operating profit was recorded significantly higher at N$101,5 million up from N$34,5 million of 2005.”The improvement in operating profit is primarily result of obtaining significant cost savings throughout the business together with the continued focus on growing volumes,” said Group Financial Director Ciaran Duffy.Profit before taxation was higher at N$101,8 million from N$19,6 million registered in the corresponding period.Net profit attributable to ordinary shareholders also surged to N$83,3 million from N$20,1 million of the previous year, while headline earnings per ordinary share went up.Operating expenditure went down by 3,5 per cent, despite price increases in some of NBL’s products.For the second year running, NBL saw its beer volumes in Namibia shoot up, with Windhoek Lager and Tafel showing the strongest growth and accounting for the majority of the beer volumes.”Namibia remains a highly competitive market in both beer and soft drinks.Increasingly, in the beer market, this competition is coming not only from competing beer brands but also from other alcoholic drinks…which act as substitutes for beer,” read the report.However, this situation did not translate similarly on the South African market as export volumes to the neighbouring decreased in the first six months.Said Duffy of NBL’s future plans: “The year ended 30 June 2006 has been a milestone year for the Group with a significant increase in profitability.In addition to the improved results, various initiatives have been put in place across the business to ensure the Group’s long term sustainability.”The operating profit was recorded significantly higher at N$101,5 million up from N$34,5 million of 2005.”The improvement in operating profit is primarily result of obtaining significant cost savings throughout the business together with the continued focus on growing volumes,” said Group Financial Director Ciaran Duffy.Profit before taxation was higher at N$101,8 million from N$19,6 million registered in the corresponding period.Net profit attributable to ordinary shareholders also surged to N$83,3 million from N$20,1 million of the previous year, while headline earnings per ordinary share went up.Operating expenditure went down by 3,5 per cent, despite price increases in some of NBL’s products.For the second year running, NBL saw its beer volumes in Namibia shoot up, with Windhoek Lager and Tafel showing the strongest growth and accounting for the majority of the beer volumes.”Namibia remains a highly competitive market in both beer and soft drinks.Increasingly, in the beer market, this competition is coming not only from competing beer brands but also from other alcoholic drinks…which act as substitutes for beer,” read the report. However, this situation did not translate similarly on the South African market as export volumes to the neighbouring decreased in the first six months.Said Duffy of NBL’s future plans: “The year ended 30 June 2006 has been a milestone year for the Group with a significant increase in profitability.In addition to the improved results, various initiatives have been put in place across the business to ensure the Group’s long term sustainability.”