Namibia Breweries Limited (NBL)’s after-tax profit surged by 70.9% to N$292 million for the six months ended 31 December 2021 due to increased beer sales in South Africa.
According to the brewer’s unaudited interim condensed consolidated financial results released this week, total beer volumes for the 6-months were up 9.2%, although Namibian volumes were down 7.3% YoY with production volumes to SA up 99.9%.
“Festive season volumes were muted, with consumer trends still showing healthy demand for higher alcoholic beverages while the mainstream segment saw intense price competition in addition to pervasive economic pressures. South African beer volumes returned to pre-COVID levels, with lively demand for Windhoek and Heineken in the premium segment. The potential negative revenue impact from lower Namibian volumes was lessened through price increases which became effective from October 2021,” the company said.
NBL’s net revenue for the period increased by 10.6% to N$1 553 million mainly due to 99.9% growth in NBL production volumes sent to South Africa and royalty income growth from Heineken SA.
“The latter increased by 27.3% to N$71 million, whereas the equity loss from associate turned positive, delivering N$31 million equity income for the period.”
Capital expenditure for the six months amounted to N$61 million with returnable bottles being the main capital investment item.
“NBL prioritized investments that deliver the most effective and sustainable level of operations. After COVID-19 related delays in 2021, planning and feasibility studies commenced for further upgrades and expansion to the packaging facility and warehouse,” the brewer added.
Operating expenditure for the period under review increased by 21.4% YoY to N$1,175.3 million, mainly attributed to international raw material upward cost pressures, a position which has seen the company assessing the possibility of a product price hike to cushion itself.
Operating profit for the six months increased by 4% YoY to N$358 million.
Associate Heineken SA, contributed N$31.1 million, 134.7% increase YoY from a previously reported loss.
NBL did not declare an interim dividend in accordance with the conditions of the potential Heineken SA disposal transaction.
