NBL aims for more growth
…as profit after tax jumps up 134%
By Hilary Mare
NAMIBIA Breweries Limited (NBL) – a subsidiary of the Ohlthaver & List (O&L) Group – will focus on maintaining and growing market share both within Namibia and outside Namibia following its strong financial performance in 2019.
The brewery recorded a robust performance with operating profit, earnings per ordinary share and profit attributable to shareholders increasing by 6.3%, 134% and 134%, respectively.
“Innovation within all spheres of our business is a strong focus for NBL and will support from both a volume growth but also bottom line performance perspective. Our focus to maintain and grow market share both within as well as outside of our boarders will remain high on our agenda while providing an environment for our people to grow and succeed will remain a key deliverable to ensure NBL’s future success as well as to deliver our Groups Vision towards 2025,” NBL Managing Director (MD), Marco Wenk said.
The NBL Board declared a final dividend of 50c on 4 September 2019, which represents an increase of 8.7% from the previous period and approved an additional special dividend of 121.05 cents per share.
“Whilst NBL has seen significant growth over the past years, Namibia is without a doubt facing challenging economic conditions. These will require that we take all measures necessary to ensure we place maximum focus on efficiencies and an on-going sustainable business. We also have to continuously challenge ourselves to innovate and find opportunities for growth, within as well as outside our borders,”Wenk added.
Heineken South Africa made a significant contribution to profit by delivering N$106 million (2018: N$96 million) in royalties. NBL’s share in associate profit amounted to N$451 million in 2019 (N$335 million recognition of deferred tax asset and N$116 million share of associate profit).
NBL Finance Director, Waldemar von Lieres: “For the first time in three years, volumes in Namibia started picking up again, delivering 3.9% growth on 2018 against a recessionary backdrop. Volume growth to South Africa reached a stellar 44.8%. Export volumes decreased by 31.2%. Overall volumes increased by 13.8% with revenue increasing by 15.3%. Profit attributable to shareholders of N$932 million was delivered – an increase of 134% on prior year.”
In view of the individual brands, Tafel Lager contributed to Namibia’s 29th Independence celebrations by calling on Namibians to record and contribute their beats, tunes and moves. In the biggest social media co-creation in Namibia, the Beat of Namibia campaign received over 6 000 entries.
Tafel Radler was successfully launched in October 2018, as the first locally produced offering in the flavoured, low-alcohol beer segment in Namibia. Volume demand far exceeded expectations and led to stock shortages, which were quickly addressed. A 660ml returnable bottle was launched during April 2019 to increase the brand’s footprint and broaden our appeal to consumers seeking the larger returnable pack, which is at a more accessible price point.
The McKane range of premium mixers launched new flavours: Cranberry, Grapefruit and Ginger Ale.
King Lager partnered with a vocational training centre as a way to give back to consumers. An up skilling campaign called “Man with a Plan” was launched to provide participants with tips and advice on various trades that will enable and inspire them to seek out means to make a living and take care of their families.