Positive turnaround for O&L

THE Ohlthaver & List Group (O&L) yesterday released positive annual results which showed a profit of N$277 million, a major achievement in the company’s 84-year history.

O&L, Namibia’s largest private company outside the mining industry, has subsidiaries in areas of food production, fishing, beverages, farming, retail trade, IT, property development and hospitality, employing some 4 300 workers. O&L has been in a major turnaround strategic plan in the past few years – including retrenching and shedding some business entities – which led to some sceptics in the industry seeing doom for the company.However, results for the year ending June 30 2007 have defied pessimism and shown that O&L has worked on a winning formula.Revenue grew by 20,4 per cent to N$2,3 billion from N$1,9 billion, with earnings attributable to shareholders at N$194,3 million from N$55,4 million.Addressing a press briefing at the company headquarters at Carl List Haus yesterday, O&L Executive Chairman Sven Thieme said: “We are proud to have defied those who said we would fail.We have had our difficult times, but now on a positive path.”Thieme also said O&L would continue with its “unified process of strategy setting and monitoring” throughout the well-diversified group.These focus areas were summed up as human capital, further improving business models for subsidiaries, optimisation of the company’s treasury management function, and business process improvement initiatives.A new strategic plan has been devised for 2008, said Thieme.Future endeavours include further investment of N$26,6 million at Hangana Seafood to make it a world-class fishing company by 2011, and creating a dairy super-farm at a cost of N$54,8 million to ensure the long-term profitability of the troubled local dairy industry.Thieme explained that a super-farm was a modern farm with the latest equipment to pamper the cows to produce the best quality milk.The super-farm will be set up near Mariental This modern method is used mostly in the developed world.The company will also refurbish its Carl List Haus property at a cost of N$50 million and Seagulls at a cost of N$16,1 million.Earlier this year, O&L struck a N$550 million partnership with IFA Hotels and Kempinski Hoteliers to bring five-star hotels to Namibia.Thieme said the controversial Midgard hotel was still a loss-making entity for which the company has yet to find a solution.O&L has been in a major turnaround strategic plan in the past few years – including retrenching and shedding some business entities – which led to some sceptics in the industry seeing doom for the company.However, results for the year ending June 30 2007 have defied pessimism and shown that O&L has worked on a winning formula.Revenue grew by 20,4 per cent to N$2,3 billion from N$1,9 billion, with earnings attributable to shareholders at N$194,3 million from N$55,4 million.Addressing a press briefing at the company headquarters at Carl List Haus yesterday, O&L Executive Chairman Sven Thieme said: “We are proud to have defied those who said we would fail.We have had our difficult times, but now on a positive path.”Thieme also said O&L would continue with its “unified process of strategy setting and monitoring” throughout the well-diversified group.These focus areas were summed up as human capital, further improving business models for subsidiaries, optimisation of the company’s treasury management function, and business process improvement initiatives.A new strategic plan has been devised for 2008, said Thieme.Future endeavours include further investment of N$26,6 million at Hangana Seafood to make it a world-class fishing company by 2011, and creating a dairy super-farm at a cost of N$54,8 million to ensure the long-term profitability of the troubled local dairy industry.Thieme explained that a super-farm was a modern farm with the latest equipment to pamper the cows to produce the best quality milk.The super-farm will be set up near Mariental This modern method is used mostly in the developed world.The company will also refurbish its Carl List Haus property at a cost of N$50 million and Seagulls at a cost of N$16,1 million.Earlier this year, O&L struck a N$550 million partnership with IFA Hotels and Kempinski Hoteliers to bring five-star hotels to Namibia.Thieme said the controversial Midgard hotel was still a loss-making entity for which the company has yet to find a solution.