Profit hangover for NamBrew
NamBrew’s interim revenue barrel at the end of December was nearly 4% fuller than the corresponding six months in 2018.
Jo-Maré Duddy – NamBrew’s decision not to increase the price of beer in returnable bottles took the kick out of group latest interim profit.
Namibia Breweries’ operating profit for the six months ended 31 December was nearly N$339.7 million, about N$31.2 million or 8.4% less than the same half-year in 2018. The locally-listed group’s net profit of nearly N$317.8 million dropped by nearly N$49 million or 13.3%.
“Operating profit was down by 8.4%, as a result of not implementing an annual price increase on returnable bottles, which constitutes the dominant portion of Namibian beer sales.
“The decision recognised the struggling economy’s severe impact on consumers,” NamBrew said in its interim results released on the Namibian Stock Exchange (NSX) on Friday.
Sales brought in more than N$1.6 billion, while royalties and know-fees boosted revenue by nearly N$66.2 million. Total revenue of about N$1.7 billion was recorded for the half-year under review, an increase of nearly N$63.2 million or 3.9% compared to the corresponding period in 2018.
NamBrew achieved positive overall volume growth of 3%, “despite challenging economic times, driven by being competitively priced on a wide portfolio of products, innovative thinking and new product launches”, the company said.
Heineken SA
Namibia, South Africa and export volumes rose by 1.9%, 6.3% and 28.3%, respectively.
“Overall revenue however increased by 3.9% on the back of increased beer volumes. Sales volumes in the other segments lost some ground,” according to the company.
NamBrew’s joint venture with Heineken South Africa contributed about N$76.98 million to overall profit, slightly down from the N$78.3 million recorded in the same half-year in 2018.
Earnings before interest and taxes (EBIT) decreased by nearly N$31.2 million or 8.4% to nearly N$339.7 million.
Basic earnings per share (EPS) was 153.9c compared to 177.6c in the same half-year in 2018.
Headline earnings per share (HEPS), a gauge for profitability, dropped by nearly 13.5% to 154c.
NamBrew’s board declared a dividend of 53c per share, up 6% from the previous period.
The managing director of NamBrew, Marco Wenk, said while the group has seen significant growth over the past years, “Namibia is without a doubt facing challenging economic conditions”.
“NBL’s success can be ascribed to its drive to be ahead of the curve in meeting the ever-changing needs of its consumers. We will continuously challenge ourselves to innovate and find opportunities for growth, within as well as outside our borders,” Wenk said.
Namibia Breweries’ operating profit for the six months ended 31 December was nearly N$339.7 million, about N$31.2 million or 8.4% less than the same half-year in 2018. The locally-listed group’s net profit of nearly N$317.8 million dropped by nearly N$49 million or 13.3%.
“Operating profit was down by 8.4%, as a result of not implementing an annual price increase on returnable bottles, which constitutes the dominant portion of Namibian beer sales.
“The decision recognised the struggling economy’s severe impact on consumers,” NamBrew said in its interim results released on the Namibian Stock Exchange (NSX) on Friday.
Sales brought in more than N$1.6 billion, while royalties and know-fees boosted revenue by nearly N$66.2 million. Total revenue of about N$1.7 billion was recorded for the half-year under review, an increase of nearly N$63.2 million or 3.9% compared to the corresponding period in 2018.
NamBrew achieved positive overall volume growth of 3%, “despite challenging economic times, driven by being competitively priced on a wide portfolio of products, innovative thinking and new product launches”, the company said.
Heineken SA
Namibia, South Africa and export volumes rose by 1.9%, 6.3% and 28.3%, respectively.
“Overall revenue however increased by 3.9% on the back of increased beer volumes. Sales volumes in the other segments lost some ground,” according to the company.
NamBrew’s joint venture with Heineken South Africa contributed about N$76.98 million to overall profit, slightly down from the N$78.3 million recorded in the same half-year in 2018.
Earnings before interest and taxes (EBIT) decreased by nearly N$31.2 million or 8.4% to nearly N$339.7 million.
Basic earnings per share (EPS) was 153.9c compared to 177.6c in the same half-year in 2018.
Headline earnings per share (HEPS), a gauge for profitability, dropped by nearly 13.5% to 154c.
NamBrew’s board declared a dividend of 53c per share, up 6% from the previous period.
The managing director of NamBrew, Marco Wenk, said while the group has seen significant growth over the past years, “Namibia is without a doubt facing challenging economic conditions”.
“NBL’s success can be ascribed to its drive to be ahead of the curve in meeting the ever-changing needs of its consumers. We will continuously challenge ourselves to innovate and find opportunities for growth, within as well as outside our borders,” Wenk said.
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