NBL grows revenue despite cross-border challenges

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The company, who’s brand portfolio includes Windhoek Lager, Tafel Lager, Windhoek Draught, Windhoek Light and Vigo, saw revenue increase from 1.22 billion Namibian dollars for the six months ended 31 December 2012 to 1.35 billion Namibian dollars for the same period in 2013.

“Our overall sales continue to grow in Namibia, South Africa and exports, albeit from a small base in our export markets,” said Namibia Breweries Limited (NBL) managing director, Hendrik van der Westhuizen.

He also attributed some of the challenges to the continuous cross border trade in some key markets, sin tax in Botswana and Zambia of up to 50 per cent and 60 per cent respectively and increased costs, due to a weaker rand, on all imported raw materials, amongst others.

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Operating profit rose 17 per cent to 274 million Namibian dollars in the 2013 period from 233 million Namibian dollars in 2012 and profit before tax increased from 181 million Namibian dollars to 235 million Namibian dollars.

Basic earnings per share grew by 41 per cent to 82.5 cents in 2013 from 58.7 cents in 2012 and a dividend of 31 cents per ordinary share was declared.  

NBL finance director, Graeme Mouton said,” Overall NBL has delivered good performance in the last six months, mainly driven by top line growth in sales volumes and further supported by pricing.  Volumes in our exports also grew compared to the prior year with Mozambique and Tanzania seeing good growth in volumes albeit from a small base.”

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“DHN Drinks – our joint venture in South Africa – continued to grow its total portfolio, with increasing sales compared to the prior period, the RTD portfolio being the main driver of growth. Taking our margins and royalty income into account, we continued to make positive returns in South Africa overall,” he added.