CHAMWE KAIRA
Namibia Breweries Limited expects profit after tax and basic earnings per share are expected to decrease by more than 90% for the twelve months ended 30 June 2024.
The company said in a trading statement that the decrease is attributable to the once-off extraordinary gains related to the profit realised on the sale of the shares held in Heineken South Africa (RF) Proprietary Limited in the comparative year.
Namibia Breweries said headline earnings per share from continuing operations for the twelve months ended 30 June 2024 are expected to decrease by less than 5% compared to the comparative financial period.
The group´s reviewed second interim financial results will be released on the stock exchange on about 26 September 2024 and in the press on or about 27 September 2024.
The company referred shareholders to the announcement dated 27 March 2024 where NBL informed shareholders that it has changed its year-end to 31 December.
“As a result of this change, NBL will publish reviewed second interim financial results for the 12-month period ending 30 June 2024. In terms of paragraph 3.4 (b) of the Listing Requirements of the Namibian Stock Exchange, NBL shareholders are advised that the Group’s operating profit for the twelve months ended 30 June 2024 is expected to increase by between 8% and 13% compared to the comparative financial period, driven by strong performance from the new portfolio and an adjusted pricing strategy. However, this increase was impacted by higher net financing costs and increased tax expenses, resulting in a marginal decline in headline earnings,” the company said.
In August, President Mbumba officially opened a new wine packaging facility at the Namibia Breweries factory in Windhoek. The facility, built with a N$394 million investment, includes a new packaging hall, an advanced wine packaging line, and expanded warehouse space. The construction of the venture, involved 14 local companies and will enable brands such as Tassenberg, Savanna, Hunters Dry, and Hunters Gold to be bottled, filled, and packaged in Namibia rather than South Africa.
The value addition will reduce Namibia’s reliance on imports and create many opportunities for local small and medium-sized enterprises.
In 2023, the company said despite lower volumes and difficult market conditions, net revenue increased by 12.1% to N$3,3 billion. Turnover was boosted by premium volumes sold in South Africa, but even this category started to show serious strain towards the end of the financial year. The contribution from export markets dropped significantly as hard currency availability hampered sales. Even in previously resilient markets like Tanzania, customers found it difficult to access foreign currency to pay accounts.
Net revenue of N$246 million related to the Distell Namibia merger has been included in the Group’s results, since the effective date of acquisition.
