CHAMWE KAIRA
Savanna Beef Processors Limited reported a group loss of N$25.9 million for the financial year ended 28 February 2026, as the company continued with the commissioning and ramp-up of its newly completed abattoir and meat processing facility.
According to the company’s audited financial results released on the Namibia Securities Exchange (NSX), the group recorded an operating loss of N$30.9 million compared with an operating loss of N$13.2 million in the previous financial year.
The group’s loss before taxation widened to N$42.1 million from a loss of N$1.2 million recorded in the prior year. A taxation benefit of N$16.2 million reduced the final loss for the period to N$25.9 million, compared with a loss of N$1.2 million in 2025.
Headline earnings per share declined to a loss of 10.14 cents, from a loss of 0.50 cents in the previous year.
At company level, Savanna Beef Processors recorded a profit of N$557 453, compared with N$1.9 million in 2025. The company’s operating loss narrowed to N$508 096 from N$1.6 million previously.
The results reflect the costs associated with bringing the company’s abattoir and meat processing operations into production.
The subsidiary, Savanna Beef Operations (Pty) Ltd, received its taking-over certificate from the contractor on 29 October 2025, resulting in the full capitalisation of the abattoir and processing plant.
The total project value amounted to N$436.5 million, including N$17.4 million in capitalised borrowing costs. Depreciation of the facility will only commence once the plant reaches full operational capacity, which is expected from 1 June 2026.
The completion of the project was delayed by 67 calendar days, resulting in delay damages of N$9.2 million being paid by the contractor.
During the financial year, the subsidiary continued to ramp up operations, slaughtering 1 764 livestock units (LSUs) and employing 130 people by year-end. However, products were sold exclusively on the local market while the company awaited export accreditation.
Savanna said administrative expenses included salaries amounting to N$15.5 million, covering the full management team employed by year-end.
The company said the capital project was completed within budget, while operating and administrative expenses were below budget due to management’s decision to delay expenditure while anticipating a slower ramp-up period as export approvals were being processed.
Finance costs related to loans from the Industrial Development Corporation of South Africa and Energy Utilities Savanna (Pty) Ltd amounted to N$28.1 million during the year. Of this amount, N$13.1 million was capitalised.
Following the reporting period, Savanna Beef Operations received European Union (EU) export accreditation on 7 April 2026 and Southern African Development Community (SADC) export accreditation on 11 June 2026.
The approvals enable the company to export beef to regional markets, including SADC countries, as well as the EU and United Kingdom markets.
The subsidiary operated at reduced capacity during February and March 2026 while awaiting these approvals.
To support the transition to full production, Savanna introduced a digital slaughter rights system and an online booking platform aimed at improving transparency and efficiency in trading, booking and slaughter processes.
A controlled pilot phase was conducted between 13 April and 29 May 2026, allowing slaughter rights holders to participate while the company tested its operational systems ahead of the official first-quarter rollout.
Savanna issued 40 million ordinary shares on 9 January 2026 following a subscription agreement with BPF Windsor Holdings Limited.
The shares were issued at a nominal value of N$0.01 each, together with a premium of N$0.99 per share, increasing the company’s issued share capital to 290.004 million shares from 250.004 million shares.
With export accreditation secured, Savanna issued slaughter rights to producer shareholders for the remaining three quarters of the 2026/27 financial year.
The allocations are: quarter 2 (1 June–27 August 2026): 15 470 slaughter rights, quarter 3 (1 September–30 November 2026): 12 721 slaughter rights and quarter 4 (1 December 2026–28 February 2027): 9 594 slaughter rights.
The allocation was based on a ratio of 5 333 shares per slaughter right. The slaughter rights are traded on the NSX over-the-counter (OTC) platform, with certificates issued by NSX Financial Market Services. Savanna declared that no dividends were paid for the financial year.
